DMBA402 INTERNATIONAL BUSINESS MANAGEMENT FEB-MARCH 2025

Description

SESSION	FEB-MARCH 2025
PROGRAM	MBA
SEMESTER	IV
COURSE CODE & NAME	DMBA402 INTERNATIONAL BUSINESS MANAGEMENT

 

 

Assignment Set – 1

 

1. Explain the importance of International Business. Explain the challenges faced while doing international business.

Ans 1.

Importance of International Business

International business plays a vital role in the growth and development of economies and organizations. It involves commercial transactions that cross national boundaries and includes activities like trade, investment, joint ventures, and franchising. In the modern globalized world, businesses seek to expand beyond their domestic markets to achieve several strategic benefits.

One of the major advantages of international business is market expansion. By entering foreign markets, companies can access new customer bases and reduce their dependency on local demand.

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2. Write short note on following:
3. Impact of Demographic Environment on IB
4. Culture and its impact on international business

Ans 2.

1. Impact of Demographic Environment on International Business

Demographic environment refers to the characteristics of the population in a specific region, including age distribution, gender, income levels, education, population growth rate, urbanization, and workforce availability. These demographic factors play a critical role in shaping international business decisions and strategies. A favorable demographic profile often translates to new market opportunities, while an unfavorable one may present operational and economic challenges.

For example, countries with a young and growing population, such as India and many African

 

 

3. Write notes on the following:
4. Negative impact of Globalization
5. International Labor Organization 5+5

Ans 3.

1. Negative Impact of Globalization

Globalization, while offering numerous benefits like economic integration and market access, also brings with it several negative consequences, particularly for developing and underdeveloped countries. One of the most significant negative effects is the widening income inequality between developed and developing nations. Wealth tends to concentrate in a few countries or within elite groups, leaving large portions of the population marginalized and economically vulnerable.

Another negative impact is the loss of cultural identity. As global brands and western lifestyles

 

Assignment Set – 2

 

 

4. What is International Financial Management? Explain the types of International Accounting Standards.

Ans 4.

International Financial Management

International Financial Management (IFM) refers to the management of financial operations that involve cross-border transactions. It is concerned with managing finance in an international business environment and addresses issues like foreign exchange risk, global investment decisions, cross-border taxation, international capital budgeting, and global financing options.

The core objective of IFM is to maximize the value of a firm operating in multiple countries, while managing the risks that arise from exchange rate fluctuations, political instability, and differing

 

 

5. Explain FDI? Elaborate on the advantages and disadvantages of FDI. 2+8

Ans 5.

FDI (Foreign Direct Investment)

Foreign Direct Investment (FDI) refers to an investment made by a company or individual in one country into business interests located in another country. It typically involves acquiring a lasting interest or significant degree of influence in a foreign business, often through ownership of assets, establishing operations, or forming joint ventures. FDI is not just about capital flow—it also includes the transfer of technology, expertise, and management practices. It plays a major role in

 

6. Write notes on the following:
7. Recruitment of Expatriates
8. Theory of Absolute Advantage 5+5

Ans 6.

1. Recruitment of Expatriates

The recruitment of expatriates refers to the process of selecting and assigning employees from one country (usually the home country of a multinational corporation) to work in a foreign subsidiary or office. Expatriates are typically professionals with strong organizational knowledge and the ability to manage cross-cultural teams. Recruitment of expatriates is a strategic function in international human resource management and is critical to the success of global operations.