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MB0053 —International Business Management

MB0053 —International Business Management

Summer 2013

Master of Business Administration- MBA Semester 4

MB0053 —International Business Management -4 Credits

(Book ID: B1724)

Assignment- 60 marks

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.


Q1. The world economy is globalizing at an accelerating pace. What do you mean by globalization? Discuss the merits and demerits of Globalization.

Answer :

Globalization is the process of international integration arising from the interchange of world views, products, ideas, and other aspects of culture. Put in simple terms, globalization refers to processes that increase world-wide exchanges of national and cultural resources. Advances in transportation and telecommunications infrastructure, including the



Q2. The international trade theories explain the basics behind international trade. Compare the Absolute and comparative cost advantage theories with the help of example.

Answer :

Comparative advantage theory :

Ricardo’s theory :

David Ricardo stated a theory that other things being equal a country tends to specialize in and exports those commodities in the production of which it has maximum comparative cost advantage or minimum comparative disadvantage. Similarly the country’s imports will be of goods having relatively less comparative cost advantage or greater disadvantage.

Assumptions :


Q3. Culture is more often a source of conflict than synergy. As an Indian manager, what management style and corporate culture you should be aware of while travelling to Japan and to USA?

Answer : Japanese corporate culture :

The culture of Japanese management that is often portrayed in Western media is generally limited to Japan’s large corporations. These flagships of the Japanese economy provide their workers with excellent salaries, secure employment, and working conditions.[citation needed] These companies and their employees are the business elite of Japan.[citation needed] Though not as much for the new generation still a career with such a company is the dream of many young people in


Q4. Regional integration is the bonding between nations and states through political, cultural and economic cooperation. A whole range of regional integration exists today. Discuss these 6 types in brief.

Answer : Regional integration is a process in which states enter into a regional agreement in order to enhance regional cooperation through regional institutions and rules. The objectives of the agreement could range from economic to political to environmental, although it has typically taken the form of a political economy initiative where commercial interests have been the focus for achieving broader socio-political and security objectives, as defined by national governments.

 Types of regional integration :

Types of the regional integration


Q5. The decision of a firm to compete internationally will be strategic. While formulating global marketing strategies, how should a firm deal with segmentation, market positioning and international product policy?

Answer : 1. Segmentation :

Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs, and then designing and implementing strategies to target their needs and desires using media channels and other touch-points that best allow to reach them.

Methods for segmenting consumer markets :

Geographic segmentation :

Marketers may segment according to geographic criteria–nations, states, regions, countries, cities, neighborhoods, or postal codes.



Q6. Global sourcing industry is on a growth run as there are sound business reasons to it. Discuss these reasons with examples.

Answer : Reasons for global sourcing :

1. Access to raw materials. If your company uses raw materials that are not abundant in your own country then you can lower your supply risk by sourcing globally if availability of those materials is greater elsewhere. Economies of scale in extraction can also mean lower prices even with the extra cost of transport and duties factored in. Wal-Mart has been actively pursuing a strategy that emphasizes global sourcing.

 For example, Wal-Mart identifies common products used throughout the world and “determines whether there is an opportunity to improve quality

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