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IB0017 –International Business Environment and International Law


DRIVE-Spring 2015


SUBJECT CODE & NAME-IB0017 –International Business Environment and International Law

BK ID-B1909



Q1. Discuss the pros and cons of internationalization. (Pros, cons) 5, 5

Answer: Pros Cons Increasing the annual net profit or cash High initial investments are necessary, for flows by transferring competitive example, for a distribution system advantages to a foreign market Using foreign sales potentials to achieve Costly product diversification due to, for volume effects by increasing the quantity example, technological differences or a different structure of demand can be a prerequisite for a successful foreign market



Q2. Explain the relationship between law, business and international law. How isinternational law considered to be mixed in nature?

(Relationship, International law) 6, 4


Relationship between law, business and international law


International business and economic law involves the public international law and domestic law applicable to international business transactions between private parties, as well as the public international law applicable to trade and investment relations between or among states. The concerns of international economic and business law




Q3. Discuss the laws related to regulation and promotion of foreign trade in India. (Laws regulating foreign trade) 10


Answer: Regulation: To ensure a full disclosure of all information relating to a franchise company prior to a franchisee taking on the business, franchise regulations have been put in place by the Federal Trade Commission (FTC). While the disclosure process is lengthy and should always include an experienced franchise attorney, there are basic guidelines to the regulations that a small business owner should be aware of when considering franchising options. In addition to the FTC rules, though, many states have implemented their own individual franchise rules and minimum disclosure requirements. Their policies all incorporate the FTC regulations as



Q4. Write short notes on: 5, 5


  1. Export cartels
  2. Customs valuation



  1. Export cartels:


Export cartels are exempted from the competition laws of most countries. While some scholars and several WTO members have recently condemned such cartels, others have argued that they allow efficiency gains that actually promote competition and trade. This paper examines the various issues involved, with special reference to developing countries and to recent discussions on trade and competition policy. After summarising the contending views on export cartels, and also the scanty theoretical literature on the subject, it reviews the treatment of such




Q5. How does the TRIPs agreement protect IPRs? What are the 7 intellectual properties defined in TRIPs?

(TRIPS and IPRs, intellectual properties)5,5


TRIPs agreement protect IPRs


The TRIPS agreement introduced intellectual property law into the international trading system for the first time and remains the most comprehensive international agreement on intellectual property to date. In 2001, developing countries, concerned that developed countries were insisting on an overly narrow reading of TRIPS, initiated a round of talks that resulted in the Doha Declaration. The Doha declaration is a WTO statement that clarifies the scope of TRIPS, stating for example that TRIPS can and should be interpreted in light of the goal “to promote



Q6. Which are the various kinds of investment treaties and how do theyfunction?

(Investment treaties meaning, Kinds,Function)2,4,4


Investment treaties

An investment treaty is an agreement made between two or more sovereigns that safeguards investments made in the territory of the signatory countries. Sovereigns purportedly promulgate these investment treaties as “a means to satisfy the need to promote and protect fo

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