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MB0053 —International Business Management


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SMU MBA Summer 2014 Assignments are available. For Booking ,Kindly mail us on OR call us to +91 9995105420  or S M S your “ Email ID ” us in the following Format  “  On +91 9995105420 we will reach back you with in 24H ”




SUBJECT CODE & NAME-MB0053 —International Business Management


Q1. “The world economy is globalizing at an accelerating pace”. Discuss this statement and list the benefits of globalization.

(Discuss the statement-6, Listing the benefits-4) 10 marks


The world economy is globalizing at an accelerating pace

The world economy is globalising at an accelerating pace. Countries that were previously closed to foreign companies have now opened up their markets. Internet has made the world a smaller place. All these factors have contributed to the growth of international business. International business operates under different economic, political, and legal



Q2. Compare the Adam Smith and David Ricardo’s theories of international trade with examples.

(Adam Smith’s theory-5, David Ricardo’s theory-5) 10 marks



Adam Smith’s theory/ Absolute advantage theory

Adam Smith attacked the mercantilism and argued that countries differ in their ability to produce goods and services efficiently due to variety of reasons. At that time, England, by virtue of their superior manufacturing processes, were the world’s most efficient textile manufacturers of the world. This was due to combination of several factors such as favorable climate, good soils, skilled manpower and accumulated experience and expertise in textile production. On


Q3. Regional integration is helping the countries in growing their trade. Discuss this statement. Describe in brief the various types of regional integrations.

(Regional integration-3, types-7) 10 marks



Regional integration

Regional integration can be defined as the unification of countries into a larger whole. It also reflects a country’s willingness to share or unify into a larger whole. The level of integration of a country with other countries is determined by what it shares and how it shares. Regional integration requires some compromise on the part of


Q4. Write short note on:

a) GATS (General Agreement on trade in services)

b) ILO (International Labour organization)

(Meaning and role of GATS-5,  Meaning and role ILO-5) 10 marks



a)      General Agreement on Trade in Services (GATS)

It encourages countries to modify their domestic regulations. This modification results in elimination of restrictions applied to service products entering the country and is applicable to international service suppliers who are carrying out business in various modes. According to the GATS, MFN status and transparency is applicable to all services.


Q5. What is the difference between domestic and international accounting and how will you measure this difference?

(Differences-35, measures-5) 10 marks



Difference between domestic and international accounting

The management of finance in domestic and international business is considerably different. The four major aspects which distinguish international management from domestic financial management are the introduction of foreign exchange, political risks, market imperfection and enhanced opportunity set. They are explained as follows:

Foreign exchange risks — The foreign exchange risks states the fluctuation or variation in the prices of currency which will have a tendency to convert a profitable deal to a loss making one. This creates a situation of additional risk


Q6. Discuss the various payment terms in international trade. Which is the safest method and why?

(The modes of payment-8, Safest mode-2) 10 marks



Various payment terms and payment methods in international trade


Since international trade deals with exchange of goods, there are various ways in which the payment terms (finance) will be handled. Bothe seller and trader should be careful about the method of payment as



Dear Students,

SMU MBA Summer 2014 Assignments are available. For Booking ,Kindly mail us on OR call us to +91 9995105420  or S M S your “ Email ID ” us in the following Format  “  On +91 9995105420 we will reach back you with in 24H ”


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