IB0012 – Management of Multinational Corporations

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ASSIGNMENT

DRIVE FALL	SUMMER 2014
PROGRAM	MBADS (SEM 3/SEM 5) MBAFLEX/ MBA (SEM 3) PGDIB (SEM 1)
SUBJECT CODE & NAME	IB0012 – Management of Multinational Corporations
BK ID	B1200
CREDITS	4
MARKS	60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

Q. 1. Macro environmental forces are uncontrollable as compared to micro forces.Discuss how they impact international business?

Answer: Different environments and their impact

Macro-environment consists of demographic environment, economicenvironment, natural factors, technological factors, political factorsand cultural factors. Let discuss each in detail how they affectbusiness strategy.

 1. Demographic Environment

 2. Economic environment

Q. 2. Discuss the following theories of international trade:

a) Heckscher- ohlin theory

b) Porter’s theory

Answer: a) Heckscher- ohlin theory

The Heckscher-Ohlin theory focuses on the two most important factors of production, labour and capital. Some countries are relatively well-endowed with capital; the typical worker has plenty of machinery and equipment to assist with the

Q. 3. Discuss the challenges and opportunities of International management.

Answer: International management consists of building an effective strategy, structuring an appropriate organizational design and managing people in a cross-cultural environment. Throughout these activities, companies must handle bureaucratic, technical, political, economic, linguistic, behavioral and cultural differences. Even if a small business does not pursue any international activities, a couple of these international

Q. 4. Compare the management styles in India and Japan.

Answer: India may witness US$ 20 billion worth ofJapanese investment in the next three years. Major problem of Japanese multinationalorganizations investing in India is to align employees who are from totally different socialbackground and used to different kind of

Q. 5. Explain the scope of comparative management.

Answer: Comparative management analyzes the extent to which management principles are applicable from one country to another. Since the leader in the development of management principles is the United States, comparative management seeks to determine the applicability of American know-how to foreign locales. Although the concept of comparative management evolved in the late sixties, it continues to be the subject of considerable debate.

Comparative management’s scope

Q. 6. Write short notes on:

a)International advertising

b)Transfer pricing

Answer:a) meaning and role of international advertising

Advertising that takes place in a country other than the country the product or service originates. Internationaladvertising is generally cross cultural marketing communications planned and executed to engage people in advertising. It entails the dissemination of a message to target audiences from more than one country.International advertising is also a business activity involving advertisers and the advertising agencies that create ads

b) meaning and usage of transfer pricing

The price at which divisions of a company transact with each other. Transactions may include the trade of supplies or labor between departments. Transfer prices are used when individual entities of a larger multi-entity firm are treated and measured as separately run entities.When costs need to be transferred from one department of a company to another department of a company. For example, the cost for lighting a building is transferred to an administrative department instead of a construction department.

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

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or

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