Download BU (Bangalore University) MBA (Master of Business Administration) 4th Semester 2017 July International Business Dynamics Question Paper
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IV Semester M.B.A. Degree Examination, July 2017
(CBCS Scheme)
Management
4.1 : INTERNATIONAL BUSINESS DYNAMICS
Time : 3 Hours Max. Marks : 70
Instruction .' Answer aII Sections.
SECTION ? A
Answerany five of the following questions. Each question carries flve marks. (5x5=25)
1.
What do you mean by a Tariff Barriers in International Trade ? How these are
different from the Non-Tariff barriers ?
. Explain ?Comparative Advantage" with the support of an example.
. Discuss the scope of WTO. How it is different from GATT ?
. Define Foreign Direct Investment (FDI). Differentiate between FDI and Foreign
Portfolio Investment (FPI).
. What are Multi-National Enterprises (MNEs) ? Explain the adVantages and
disadvantages of MNEs from the point of view of hostcountry.
. What are the causes of globalization ?? Explain.
. What is cross cultural training ? Discuss its importance. '
SECTION ? B
Answerany three questions. Each question carries ten marks. (3x10=30)
8.
9.
10.
11.
Explain the tactors in?uencing the International business environment.
Elucidate the Export ? Import procedure and the documents that are important
during this process.
What do you mean by conflicts ? Discuss the role of negotiations in International
business.
Explain Raymond Vernon's Product Life Cycle theory in International Trade.
P.T.O.
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SECTION ? C
12. Compulsory Section. , - (1 x15=15)
Case Study : Unfair Protection or valid defence. '
?Mexico Widens Anti?Dumping measures Steel at the core of US Japan
Trade Tensions Competitors in other countries are destroyingan American
success story It must be stopped", scream headlines around the world.
International trade theories argue that nations should open their doors to trade
Conventional free trade Wisdom says that by trading With others, a country can
offer its citizens a greater volume and Selection of goods at cheaper prices than
it could in the absence of it. Nevertheless, truly free trade still does not exist
because national governments intervene. Despite the efforts of WTO and smaller
groups of nations, government seems to be crying foul in the trade game now
mere than ever before.
We see efforts at protectionism in the ris?ing trends in governments charging
foreign producers for ?dumping" their goods on the world market. WorldWide,-the=
number oi anti-dumping cases that were initiated stood at about 150 in 2014,
225 in 2015, 230 in 2016, and 300 in 2017.
There is no shortage of similar examples. The US charges Brazil, Japan, and
' Russia with dumping their products in the US market as a way out of tough
economic times. The US steel industry wants the government to'siap a
200 percent tariff on certain types of steel. But car makers in US are not
complaining, and General Motors even .spoke out against the anti-dumping
charges - as it is enjoying thevbenefits of low cost steel for the use in its
autoproduction. Canadian steel makers followed the lead of the US and are
pushing for anti-dumpig actions against four nations.
Emerging markets too, are jumping into the fray. Mexico recently expanded
coverage of its Automatic Import Advice System. The system requires importers
(from a selected list 01 countries) to notityMexican officials of the amount and
price of the shipment 10 days prior to its expected arrivals in Mexico. The ten
day notice gives domestic producers advance warning of incoming low priced
products so they can complain of dumping before the product clear customs and
enter the market place. lndia is also getting onboard by setting up a new
government agency to handle anti-dumping cases.
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Why dumping is on the rise for the first place ? The WTO.has made major
inroads on the use of tariffs, slashing them across every product category in
recent years. But the WTO does not have the authority to punish companies, but
only governments. Thus the WTO does not have the authority to punish
companies, but only governments. Thus the WTO cannot pass judgments against
individual companies that are dumping their products in other markets. It can
only pass the rulings against the governments of the country that imposes
anti-dumping duty. But the WTO allows countries to retaliate against nations
whose producers are suspected of dumping when it can be shown that :
i) The alleged offenders are significantly hurting the domestic producers.
ii) The export price is lower than the cost of productiOn or lowerthan the home-
market price.
Supporters of anti-dumping tariff claim that they prevent dumpers from
undercutting the price charged by the producers in a target market and driving
them about of business. Another claim in support of anti-dumping is that it is an
excellent way of retaining some protection against the potential dangers of totally
free trade. Detractors ot anti-dumping tariffs charge that once the tariffs are
imposed they are rarely removed. They also claim that they cost companies and
' governments a great deal of time and money to file and argue their cases. It is
argued that the fear of being charged with dumping causes international
competitors to keep their pribe higher in the target market than would have
otherwise be the case. This would allow domestic companies to charge higher
prices and not loose market shares forcing consumers to pay more for their
goods.
Case Questions : ,
i) Explain the concept of Dumping with-suitable examples.
ii) What are the major drawbacks of anti-dumping measure forthe consumers ?
iii) As we have seen WTO cannot currently get involved in punishing individual
companies for dumping. Its action can be only directed towards governments
oi countries. Do you think this is a wise policy ? Why or why not ? Justify.
This post was last modified on 28 January 2020