INTERNATIONAL BUSINESS

AEREN FOUNDATION’S                                                                              Maharashtra Govt. Reg. No.: F-11724

AN ISO 9001 : 2008 CERTIFIED INTERNATIONAL B-SCHOOL

 

SUBJECT : INTERNATIONAL BUSINESS

COURSE :  MBA 2nd semester                                   Total Marks : 80

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CASE - 1

(a) What was the critical catalyst that led Kodak to start taking the Japanese market seriously?

Kodak: The Changing Strategies By 2000, Kodak, the company that pioneered the imaging industry by inventing easy-to-use

(b) From the evidence given in the case do you think Kodak’s charges of unfair trading practices against Fuji are valid? Support your answer.   

On December 5, 1997 the US lost its first major trade dispute in the newly formed World Trade Organization(WTO). The high-profile case pitted photographic paper and film giants Kodak and Fuji against one another along with their respective governments, the US and Japan. Kodak claimed that Japan's photographic market & distribution

CASE 2

1 Which company is truly Multinational ? Why?                                       

Answer:-

A Truly Multinational Company:-The Axel Johnson Institute, the predecessor to Nordic Water, was founded as early as in the beginning of the sixties in Nynäshamn. It was an exceptional institute, as it was privately owned. From the beginning the business concept was clean water. Here they should develop, design, manufacture and deliver machines and equipment for water and wastewater treatment.

 2:  List three differences between Company, Multi National company and Trans Multi National Company?

Answer:-Difference between a global, transnational, international and multinational company18062007

We tend to read the following terms and think they refer to any company doing business in another country.

·         Multinational

·         International

·         Transnational

·         Global

Andrew Hines over at BNET has brief and clear definitions of each of these terms, Get your international business terms right.Each term is distinct and has a specific meaning which define the scope and degree of interaction with their operations outside of their “home” country.

·         International companies are importers and exporters, they have no investment outside of their home country.

·         Multinational companies have

·          

·          

CASE – 3

(a)Explain why MNCs have located R & D centres in developing countries? 

Answer:-Theories of the globalisation of innovation assume that multinational corporations (MNCs) distribute their innovation activities hierarchically, with advanced technology being confined to the advanced industrialised countries, while more routine low-end innovation is decentralised in a few developing countries. The emergence of about 40 research and development (R&D) centres in Beijing, China, many of which engage in basic and advanced applied research, challenges the above assumption. This article argues that the cheap and abundant highly skilled labour of the latecomer countries is an essential factor in attracting global R&D activities but that this factor is far from being a sufficient condition for the presence there of advanced R

(b)Mention the areas where R & D activities can easily be decentralised.

2. Decentralized R&D in the contemporary MNE

 Answer:-  The  authors  distinguish  two  different  environments  in which R&D  labs  are performing.   The  first  context  is  characterized  by  the  fact  that  R&D  activities  work  along with other functions within the subsidiary in order to develop a particular  product which would be brought on to the market by the subsidiary. In order to  better  address  local needs,  the R&D  laboratory uses  company-level  knowledge  and develops its own manufactured goods.The  second  context  reflects  a  more  contemporary  view,  implying  that  laboratories shape the

CASE -4

VK Ltd a multi-product Company, furnishes you the following data relating to the year 2000.

                First Half of the year      Second Half of the year

Sales                     Rs. 45,000                            Rs. 50,000

Total Cost            Rs. 40,000                            Rs. 43,000

Assuming that there is no change in prices and variable costs and that the fixed expenses are incurred equally in the two half years periods calculate for the year 2000.

1. The Profit Volume ration

2. Fixed Expenses

3. Break-Even Sales

4. Percentage of margin of safety.

5 marks each

Answer :  VARIABEL  COST   27000      30000      57000     

       

FIXED  COST   13000      13000      26000     

        

     40000      43000      83000     

        

        

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