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GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (International Business) — SEMESTER 1 - EXAMINATION - SUMMER 2019
Subject Code: 1519305 Date:14/05/2019
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Subject Name: International Business
Time: 02:30 AM To 05:30 PM Total Marks: 70
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Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
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3. Figures to the right indicate full marks.
Q.1 Explain the terms 14
a) Purchasing Power Parity
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b) Balance Score Card
c) Dumping
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d) Transnationale) Freight Forwarder
f) Turnkey Operations
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g) Grey Market
Q.2 (a) Explain various types of political risks with appropriate examples. 07
(b) What factors have contributed to the increased growth in globalization in 07
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recent decades?
OR
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(b) What are various modes of operation in International Business? 07Q.3 (a) Discuss the theory of Absolute-Advantage. 07
(b) Explain the Product Life Cycle Theory with appropriate examples. 07
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ORQ.3 (a) Explain the Factor Mobility Theory. 07
(b) Explain the four key factors in manufacturing strategy. 07
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Q.4 (a) Explain the components of comprehensive international supply chain 07
strategy.
(b) Explain various ethical dilemmas while conducting international trade. 07
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OR
Q.4 (a) Why international trade differs from domestic business. 07
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(b) Discuss the purpose and role of WTO. 07Mahindra & Mahindra (M & M) is a major player in the tractor and certain
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segments of the automobile market in India. After an impressive growth fora few years, the tractor market in India has been stagnating. M & M has been
selling its tractors and utility vehicles in foreign markets including USA.
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Some of the components for its products have been sourced from abroad. M
& M has a 100 per cent subsidiary in USA, Mahindra USA, with a strong
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network of 100 dealers. Mahindra has a five per cent market share in the USmarket in the 20-30 horse power (HP) range.
As a part of the strategy aimed at building a global supply chain, Mahindra
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USA has signed a memorandum of understanding (MoU) with the Koreantractor major Tong Yang, a part of the $ 2 billion Tong Yang Moolsam
group, according to which Mahindra will source high horse power (mostly
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25-40 hp range) and sell them around the world under the M & M brand
name. To start with, the premium range of tractors will be sold in the US.
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M & M’s current tractor range is more utility-oriented and lacks the aestheticappeal that Tong Yang’s tractors have, a must for a strong presence in the
US market.
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a. What are the advantages and disadvantages of global sourcing? 07
b. How will the foreign market expansion help M & M? 07
a. How does the strategic alliance with Tong Yang benefit M & M? 07
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b. What are the possible risks of the alliance? How can they be overcome/minimized? 07
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