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ASSIGNMENT
Course Code : MS-97
Course Title : International Business
Assignment Code : 97/TMA/SEM-II/2013
Coverage : All Blocks
Note: Attempt all the questions and submit this assignment on or before
31st October, 2013 to the coordinator
of your study centre.
1. What is the concept
of comparative cost advantage? Critically examine the concept with suitable
examples.
Answer : The theory of
comparative advantage is perhaps the most important concept in international
trade theory. It is also one of the most commonly misunderstood principles.
There is a popular story told amongst economists that once when an economics
skeptic asked Paul Samuelson (a Nobel laureate in economics) to provide a
meaningful and non-trivial result from the economics discipline, Samuelson quickly
responded with, "
2. Bring out the recent
trends in distribution of FDI flows and reasons for growing marginalization of
the LDCs in their global distribution.
Answer : FDI inflows to India
remained sluggish, when global FDI flows to EMEs had recovered in 2010-11,
despite sound domestic economic performance ahead of global recovery. The paper
gathers evidence through a panel exercise that actual FDI to India during the
year 2010-11 fell short of its potential level (reflecting underlying macroeconomic
parameters) partly on account of amplification of policy uncertainty as
measured through Kauffmann’s Index.
A perusal of India’s FDI policy
vis-à-vis other major emerging market economies (EMEs) reveals that though
India’s approach towards foreign
3. Briefly discuss the
evolutionary patterns in the organization structure of international business.
Answer : What is organizational
structure and why does it matter? We can think of organizational structure as
the set of formal arrangements that determine how tasks are carried out within
an organization. These arrangements usually take two forms: (1) groups or units,
which are formed around highly interdependent activities, knowledge sets, or
strategic points of focus, and (2) linkages or ties, which connect units in
different ways and establish how the organization’s workflow will progress.
4. Compare the global
strategies and the organizational structures of MNEs of any two countries of
your choice.
Answer :
The essence of global strategy is
an expansive world vision that considers the possibilities of every location as
a market and as a source of competitive advantage, both alone and when
integrated with the rest of the firm. Global enterprises must craft strategies
for international expansion, diversification, and integration to develop,
protect, and exploit their resources and capabilities. Determinations of
geographical scope and
5. What are different
types of subsidiary roles? Discuss by citing examples that you know.
Answer : A subsidiary, subsidiary
company, daughter company, or sister company is a company that is completely or
partly owned and partly or wholly controlled by another company that owns more
than half of the subsidiary's stock. The subsidiary can be a company,
corporation, or limited liability company. In some cases it is a government or
state-owned enterprise. The controlling entity is called its parent company,
parent, or holding company.
An operating subsidiary is a
business term constantly used within the United States railroad industry. In
the case of a railroad, it refers to a
6. What is partial
productivity? How does it differ from total productivity?
Answer : Measurement of partial
productivity refers to the measurement solutions which do not meet the
requirements of total productivity measurement, yet, being practicable as
indicators of total productivity. In practice, measurement in production means
measures of partial productivity. In that case, the objects of measurement are
components of total productivity, and interpreted correctly, these components
are indicative of productivity development. The term of partial productivity
illustrates well the fact that total
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