Download GTU (Gujarat Technological University) MBA (Master of Business Administration) 2016 Winter 3rd Sem 2830006 International Business Ib Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 3 ? ? EXAMINATION ? WINTER 2016
Subject Code: 2830006 Date: 02/01/2017
Subject Name: International Business (IB)
Time: 02:30 pm to 05:30 pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 (a)
1.
Objective Questions
The phenomenon of converging tastes and preferences of consumers in
different nations on some global norms leads to:
06
A. Globalization of
markets
B. Globalization of Production
C. Both (a) and (b) D. Integration
2. When quantity of money in circulation rises faster than stock of goods and
services, it is referred to as
A. Purchasing Power
Parity
B. International Fisher Effect
C. Price Inflation D Foreign Exchange Risk
3.
In which of the following the needs of the society as a whole is viewed as being more
important than individual freedom?
A. Collectivism B. Individualism
C. Democracy D.
Totalitarianism
4. A contract that specifies that the carrier is obligated to provide a transportation
service in return for a certain charge is called as:
A. Draft B. Bill of Lading
C. Bill of exchange D. Letter of Credit
5. Which of the following is not a characteristic of the Franchising mode of entry
for International Business:
A. Intangible property
(trademark) is sold
B. A new firm formed is jointly owned by two
otherwise independent firms
C. Primarily used by
service firms
D. Firms are relieved of the cost of opening the
business in the new country
6. Tax levied as a proportion of the value of imported goods is referred to as:
A. Specific tariff B. Ad-valorem tariff
C. Subsidy D. Antidumping Duty
Q.1 (b) Explain the following terms:
1. Local Content requirement as an instrument of trade policy
2. Command Economy
3. Spot Rate
4. Currency Swap
04
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 3 ? ? EXAMINATION ? WINTER 2016
Subject Code: 2830006 Date: 02/01/2017
Subject Name: International Business (IB)
Time: 02:30 pm to 05:30 pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 (a)
1.
Objective Questions
The phenomenon of converging tastes and preferences of consumers in
different nations on some global norms leads to:
06
A. Globalization of
markets
B. Globalization of Production
C. Both (a) and (b) D. Integration
2. When quantity of money in circulation rises faster than stock of goods and
services, it is referred to as
A. Purchasing Power
Parity
B. International Fisher Effect
C. Price Inflation D Foreign Exchange Risk
3.
In which of the following the needs of the society as a whole is viewed as being more
important than individual freedom?
A. Collectivism B. Individualism
C. Democracy D.
Totalitarianism
4. A contract that specifies that the carrier is obligated to provide a transportation
service in return for a certain charge is called as:
A. Draft B. Bill of Lading
C. Bill of exchange D. Letter of Credit
5. Which of the following is not a characteristic of the Franchising mode of entry
for International Business:
A. Intangible property
(trademark) is sold
B. A new firm formed is jointly owned by two
otherwise independent firms
C. Primarily used by
service firms
D. Firms are relieved of the cost of opening the
business in the new country
6. Tax levied as a proportion of the value of imported goods is referred to as:
A. Specific tariff B. Ad-valorem tariff
C. Subsidy D. Antidumping Duty
Q.1 (b) Explain the following terms:
1. Local Content requirement as an instrument of trade policy
2. Command Economy
3. Spot Rate
4. Currency Swap
04
Page 2 of 4
Q.1 (c) Answer the following in brief:
1. Objectives of WTO
2. Purchasing power parity
04
Q.2 (a) ?Political systems of a country shape its economic and legal
system?. Explain different types of political systems that prevail in
the world.
07
(b) What factors have contributed to an increased growth in
globalization?
07
OR
(b) Citing proper examples explain the difference between domestic
and international business.
07
Q.3 (a) What is foreign exchange risk? Explain Transaction Exposure,
Translation Exposure and Economic Exposure.
07
(b) Organizational structure of international firms is based on the
strategy that they follow?. Based on this principle explain the
following:
1. Global Product Division
2. Global Area Division
3. Matrix Structure
07
OR
Q.3 (a) What are the basic instruments that government uses to intervene in
foreign trade?
07
(b) Culture is an important variable that affects international business.
Culture differences affect the cost of doing business in different
countries. Give arguments in support of the statement.
07
Q.4 (a) Why do accounting systems differ in countries? Explain briefly the
major factors that affect development of accounting systems.
07
(b) Giving suitable examples, cite major advantages and
disadvantages of ethnocentric, polycentric and geocentric
approach to staffing policy.
07
OR
Q.4 (a) What is a global supply chain? What are the key factors on global
manufacturing strategy?
07
(b) Considering the pressures for Global Integration and Local
responsiveness, identify four types of international business
strategy in detail.
07
Q.5 CASE STUDY
Gender equity
As general manager of the Delhi office of the international McDott-
Nitin advertising agency, Diva Dutta had an urgent decision to
make. The head of a large project team had been taken seriously ill,
and with a major pitch due for a potentially large client in just 6
weeks she needed to appoint a replacement at once. There were
three potential candidates. In terms of ability and management
potential , Roby was clearly the strongest. Here performance to
date had been outstanding, and while this would a significant step
up, Diva was fully confident that she could make it, put together a
14
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 3 ? ? EXAMINATION ? WINTER 2016
Subject Code: 2830006 Date: 02/01/2017
Subject Name: International Business (IB)
Time: 02:30 pm to 05:30 pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 (a)
1.
Objective Questions
The phenomenon of converging tastes and preferences of consumers in
different nations on some global norms leads to:
06
A. Globalization of
markets
B. Globalization of Production
C. Both (a) and (b) D. Integration
2. When quantity of money in circulation rises faster than stock of goods and
services, it is referred to as
A. Purchasing Power
Parity
B. International Fisher Effect
C. Price Inflation D Foreign Exchange Risk
3.
In which of the following the needs of the society as a whole is viewed as being more
important than individual freedom?
A. Collectivism B. Individualism
C. Democracy D.
Totalitarianism
4. A contract that specifies that the carrier is obligated to provide a transportation
service in return for a certain charge is called as:
A. Draft B. Bill of Lading
C. Bill of exchange D. Letter of Credit
5. Which of the following is not a characteristic of the Franchising mode of entry
for International Business:
A. Intangible property
(trademark) is sold
B. A new firm formed is jointly owned by two
otherwise independent firms
C. Primarily used by
service firms
D. Firms are relieved of the cost of opening the
business in the new country
6. Tax levied as a proportion of the value of imported goods is referred to as:
A. Specific tariff B. Ad-valorem tariff
C. Subsidy D. Antidumping Duty
Q.1 (b) Explain the following terms:
1. Local Content requirement as an instrument of trade policy
2. Command Economy
3. Spot Rate
4. Currency Swap
04
Page 2 of 4
Q.1 (c) Answer the following in brief:
1. Objectives of WTO
2. Purchasing power parity
04
Q.2 (a) ?Political systems of a country shape its economic and legal
system?. Explain different types of political systems that prevail in
the world.
07
(b) What factors have contributed to an increased growth in
globalization?
07
OR
(b) Citing proper examples explain the difference between domestic
and international business.
07
Q.3 (a) What is foreign exchange risk? Explain Transaction Exposure,
Translation Exposure and Economic Exposure.
07
(b) Organizational structure of international firms is based on the
strategy that they follow?. Based on this principle explain the
following:
1. Global Product Division
2. Global Area Division
3. Matrix Structure
07
OR
Q.3 (a) What are the basic instruments that government uses to intervene in
foreign trade?
07
(b) Culture is an important variable that affects international business.
Culture differences affect the cost of doing business in different
countries. Give arguments in support of the statement.
07
Q.4 (a) Why do accounting systems differ in countries? Explain briefly the
major factors that affect development of accounting systems.
07
(b) Giving suitable examples, cite major advantages and
disadvantages of ethnocentric, polycentric and geocentric
approach to staffing policy.
07
OR
Q.4 (a) What is a global supply chain? What are the key factors on global
manufacturing strategy?
07
(b) Considering the pressures for Global Integration and Local
responsiveness, identify four types of international business
strategy in detail.
07
Q.5 CASE STUDY
Gender equity
As general manager of the Delhi office of the international McDott-
Nitin advertising agency, Diva Dutta had an urgent decision to
make. The head of a large project team had been taken seriously ill,
and with a major pitch due for a potentially large client in just 6
weeks she needed to appoint a replacement at once. There were
three potential candidates. In terms of ability and management
potential , Roby was clearly the strongest. Here performance to
date had been outstanding, and while this would a significant step
up, Diva was fully confident that she could make it, put together a
14
Page 3 of 4
very strong pitch and, in the process, make a case for permanent
promotion when a vacancy next arose. The only difficulty was that
this would mean making Roby senior to and more highly paid than
her husband, Sanjay. Currently they were at the same level, but
Sanjay, having been with the company for longer, was on the
higher salary, and was generally seen as the senior partner.
Promoting Roby, even temporarily, would be difficult for him, and
very difficult for her ? indeed when Diva raised the possibility in
casual conversation, Roby pleased with her not to be promoted.
The second candidate was Sanjay himself. He was the most
experienced person on the team, a safe pair of hands and would be
seen by colleagues as an obvious choice, but Diva strongly doubted
his potential to lead the team, and worried that the pitch would fall
flat.
The third candidate was David, the son of the firm?s chief
executive, who was in the middle of a six month stint in Delhi as
part of a programme of gaining exposure to the firm world-wide,
before taking up a head-office position. David had less experience
than either of the other two candidates, and less natural ability than
Roby, and from the point of view of the pitch would be a very high
risk choice. The advantage, though, was that even if he failed, as
Diva thought likely, the experience would ultimately be of value to
the firm.
Q.1 What ethical consideration might Diva take into account in
making this decision? Would these be different if the office
were in New York? Or in Shanghai?
Q.2 Discuss in detail the different kinds of staffing decisions
used in International Business. In the above case which
approach according to you should be most effective.
OR
Q.5 Case Study
Human resource management in Russia: an American?s
dilemma
Mickey Jones arrived in Novgorod, in north-west Russia, in Spring
2007. He worked for Starz Inc., a major US food manufacturer, and
had been posted to head up its wholly owned Russian subsidiary.
Starz Russia was a medium-sized manufacturing plant with 300
employees. It had been set up in 1994 and had a functional
organization with the top tier staffed by American expatriates, and
with locally recruited middle management.
The Americans were typically on short-term postings: two to four
years for the president (Jones) and six to twelve months for three
vice-presidents, of production, marketing and sales. All had
international experience, but none had worked in Russia or Eastern
Europe before. Before moving to Novgorod they received short
cultural briefings and a three week crash course in Russian.
The Russian managers were mainly in their late twenties, well-
educated but with little management experience and no experience
beyond the region. The blue-collar employees came from various
backgrounds but most had experienced serious financial difficulties
before joining Starz. A third had been unemployed; the rest had
14
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER 3 ? ? EXAMINATION ? WINTER 2016
Subject Code: 2830006 Date: 02/01/2017
Subject Name: International Business (IB)
Time: 02:30 pm to 05:30 pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1 (a)
1.
Objective Questions
The phenomenon of converging tastes and preferences of consumers in
different nations on some global norms leads to:
06
A. Globalization of
markets
B. Globalization of Production
C. Both (a) and (b) D. Integration
2. When quantity of money in circulation rises faster than stock of goods and
services, it is referred to as
A. Purchasing Power
Parity
B. International Fisher Effect
C. Price Inflation D Foreign Exchange Risk
3.
In which of the following the needs of the society as a whole is viewed as being more
important than individual freedom?
A. Collectivism B. Individualism
C. Democracy D.
Totalitarianism
4. A contract that specifies that the carrier is obligated to provide a transportation
service in return for a certain charge is called as:
A. Draft B. Bill of Lading
C. Bill of exchange D. Letter of Credit
5. Which of the following is not a characteristic of the Franchising mode of entry
for International Business:
A. Intangible property
(trademark) is sold
B. A new firm formed is jointly owned by two
otherwise independent firms
C. Primarily used by
service firms
D. Firms are relieved of the cost of opening the
business in the new country
6. Tax levied as a proportion of the value of imported goods is referred to as:
A. Specific tariff B. Ad-valorem tariff
C. Subsidy D. Antidumping Duty
Q.1 (b) Explain the following terms:
1. Local Content requirement as an instrument of trade policy
2. Command Economy
3. Spot Rate
4. Currency Swap
04
Page 2 of 4
Q.1 (c) Answer the following in brief:
1. Objectives of WTO
2. Purchasing power parity
04
Q.2 (a) ?Political systems of a country shape its economic and legal
system?. Explain different types of political systems that prevail in
the world.
07
(b) What factors have contributed to an increased growth in
globalization?
07
OR
(b) Citing proper examples explain the difference between domestic
and international business.
07
Q.3 (a) What is foreign exchange risk? Explain Transaction Exposure,
Translation Exposure and Economic Exposure.
07
(b) Organizational structure of international firms is based on the
strategy that they follow?. Based on this principle explain the
following:
1. Global Product Division
2. Global Area Division
3. Matrix Structure
07
OR
Q.3 (a) What are the basic instruments that government uses to intervene in
foreign trade?
07
(b) Culture is an important variable that affects international business.
Culture differences affect the cost of doing business in different
countries. Give arguments in support of the statement.
07
Q.4 (a) Why do accounting systems differ in countries? Explain briefly the
major factors that affect development of accounting systems.
07
(b) Giving suitable examples, cite major advantages and
disadvantages of ethnocentric, polycentric and geocentric
approach to staffing policy.
07
OR
Q.4 (a) What is a global supply chain? What are the key factors on global
manufacturing strategy?
07
(b) Considering the pressures for Global Integration and Local
responsiveness, identify four types of international business
strategy in detail.
07
Q.5 CASE STUDY
Gender equity
As general manager of the Delhi office of the international McDott-
Nitin advertising agency, Diva Dutta had an urgent decision to
make. The head of a large project team had been taken seriously ill,
and with a major pitch due for a potentially large client in just 6
weeks she needed to appoint a replacement at once. There were
three potential candidates. In terms of ability and management
potential , Roby was clearly the strongest. Here performance to
date had been outstanding, and while this would a significant step
up, Diva was fully confident that she could make it, put together a
14
Page 3 of 4
very strong pitch and, in the process, make a case for permanent
promotion when a vacancy next arose. The only difficulty was that
this would mean making Roby senior to and more highly paid than
her husband, Sanjay. Currently they were at the same level, but
Sanjay, having been with the company for longer, was on the
higher salary, and was generally seen as the senior partner.
Promoting Roby, even temporarily, would be difficult for him, and
very difficult for her ? indeed when Diva raised the possibility in
casual conversation, Roby pleased with her not to be promoted.
The second candidate was Sanjay himself. He was the most
experienced person on the team, a safe pair of hands and would be
seen by colleagues as an obvious choice, but Diva strongly doubted
his potential to lead the team, and worried that the pitch would fall
flat.
The third candidate was David, the son of the firm?s chief
executive, who was in the middle of a six month stint in Delhi as
part of a programme of gaining exposure to the firm world-wide,
before taking up a head-office position. David had less experience
than either of the other two candidates, and less natural ability than
Roby, and from the point of view of the pitch would be a very high
risk choice. The advantage, though, was that even if he failed, as
Diva thought likely, the experience would ultimately be of value to
the firm.
Q.1 What ethical consideration might Diva take into account in
making this decision? Would these be different if the office
were in New York? Or in Shanghai?
Q.2 Discuss in detail the different kinds of staffing decisions
used in International Business. In the above case which
approach according to you should be most effective.
OR
Q.5 Case Study
Human resource management in Russia: an American?s
dilemma
Mickey Jones arrived in Novgorod, in north-west Russia, in Spring
2007. He worked for Starz Inc., a major US food manufacturer, and
had been posted to head up its wholly owned Russian subsidiary.
Starz Russia was a medium-sized manufacturing plant with 300
employees. It had been set up in 1994 and had a functional
organization with the top tier staffed by American expatriates, and
with locally recruited middle management.
The Americans were typically on short-term postings: two to four
years for the president (Jones) and six to twelve months for three
vice-presidents, of production, marketing and sales. All had
international experience, but none had worked in Russia or Eastern
Europe before. Before moving to Novgorod they received short
cultural briefings and a three week crash course in Russian.
The Russian managers were mainly in their late twenties, well-
educated but with little management experience and no experience
beyond the region. The blue-collar employees came from various
backgrounds but most had experienced serious financial difficulties
before joining Starz. A third had been unemployed; the rest had
14
Page 4 of 4
been employed but had received no wages for months on end. Their
average wage at Starz was around US$200 a month, about 30%
more than the average wage then in Russia.
The new company had quickly run into problems of pilfering, theft
and production stoppages. By late 1999, when Jones?s predecessor
Bob Stark had arrived, theft was a major problem, with about 30%
0f production workers thought to be involved. Although
absenteeism was rare, lateness and unscheduled breaks were
common. Productivity was a long way below that of other Starz
factories in the Asia and the West. There were also problems with
the Russian managers, who showed little initiative, ignored
instructions, and failed to address problems down the line.
Bob Stark had initially responded in two ways. He had introduced
tighter control systems, including security checks and bag searches
carried out by the local managers. And he had created an informal
reward system based on those traditionally used in Russian firms,
and those used by Starz in some developing countries. Each month
the best performing manager and supervisor were awarded special
badges, received thank-you letters from Stark, and had their
photographs mounted on the wall. The initiatives had little effect,
however, and in 2002 Stark had hired a senior Russian manager to
oversee the Russian management team. Nikolai Rubkoff was in his
mid-fifties and had previously been managing director of a large
tractor plant, and he brought in a completely new management
style. He believed that little could be achieved unless people feared
punishment, he shouted and abused the Russian managers, and he
intimidated the production workers. To combat theft he simply
selected a group of workers and demanded that they prove their
innocence. When they could not (how could they?) he fired them.
That, he told Stark, would teach them a lesson.
By the time Jones arrived, theft was down significantly, discipline
had improved, and productivity, though still low, had also
improved. The managers were still not showing initiative, but
deadlines were met and problems sorted out quickly. Rubkoff?s
methods were not applauded by everyone, however. On consulting
his American colleagues, Jones found one arguing that Rubkoff had
turned the company round and clearly knew how to manage in a
Russian context, and another arguing that his methods were a
disgrace and should not be tolerated. The third was torn between
the two views.
Mickey Jones?performance would be measured in terms of how
Starz Russia performed over the next two to three years. His gut
reaction was that Rubkoff?s methods were immoral ? but they were
producing results.
Q.1 Do you think Rubkoff was right in his approach of
handling the Russian employees? What was Jones? dilemma?
Q.2 Explain the term cultural diversity and discuss its
implications with reference to the case above
**************
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This post was last modified on 19 February 2020