M.B.A. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2017.
Third Semester
Paper I — INTERNATIONAL BUSINESS
2 90131
Time 3 Hours Max. Marks 70
SECTION — A
Answer any FIVE of the following. 12 60 Marks)
1. Explain the importance and scope of International Business.
2. Discus absolute cost advantage theory.
3. Explain various factors affecting business under social and cultural environment.
4. What is multinational corporation? Explain organisational design and structure of
MNC.
5. Explain various flading blocks in detail.
6. Explain function of IMF and IBRD.
7. Explain methods of correcting disequilibrium.
8. What do you understand by business ethics? Explain its role in International
Business.
SECTION — B
(Compulsory) (10 Marks)
9. Case study
If you don't want the Chinese to get you, get them. Even as the scare of low-cost,
high quality Chinese imports flooding in has sent one section of India. Inc;
Scurrying for Cover and Protectionism, organized players in the home appliance
industry are taking advantage of it. Instead of lobbying to keep out the Chinese,
companies like Bajaj Electrical and Japan Industries are switching over to Chinese
manufacturers to source products for Indian Market, and they're not alone.
Chinese products are expected to have a significant impact on the consumer
electronics segment like televisions and refrigerators in the next few years.
Industry experts say that majors such as LG and Samsung would exit the
television and other consumer durable business in the long run and focus on digital
products, making way for the Chinese makes. It's just sign of things to come.

Consumer electronics experts predict that unless the Indian Policies change,
Indian players will increasingly switch over to marketing Chinese Products in
India.
Bajaj Electricals is bringing in a range of products — Fans and toasters into India
at Cheaper prices and providing the brand support and after sales service here.
Home appliances like toaster, iron, fans and microwave ovens are being brought in
from China at rates which are cheaper by as much as 35 to 50 percent vis-à-vis
other Indian makes.
Mr. Shekar Bajaj, chairman and Managing Director of Bajaj Electricals says that
the products imported from China are not only proving to be qualitatively better,
but also 15-20 percent cheaper than those manufactured within the Country. Mr.
J.N.Aganval, Managing Director of Japan Industries, a leading player in no-stick
utensils, toasters, roti-makers and mixer grinders told ET that Japan is also
planning to tie up with one of the Chinese manufacturers next year. "Chinese
products are proving to be so competitive that it makes sense for us to tie up with
them and market these products under our brand name in India", he said.
These companies are moving over from local manufacturers to sourcing from China
mainly because of better quality products at cheaper prices, thanks to their strong
manufacturing bases and backward integration. It's just a sign of things to come.
Industry circles say that a number of big distributors are planning to bring in
Chinese products, which could well play complete havoc with the Indian Market.
Questions
How do you define strategy "If you fail to compete with your close competitor,
marry it"? Comment in the context of competition between India, and China.
Explain the limitations of Indian manufacturers in competing with the
Chinese manufacturers.
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