M.B.A. II (Semester III) (CBCS) Examination, 2017
Group G INTERNATIONAL BUSINESS (Paper XIX)
International Business Environment (Paper
Day and Date Friday, 12-5-2017 Total Marks 70
Time 10.30 a.m. to 1.00 p.m.
Instructions • Question No. 1 is compulsory.
• Attempt any two questions from Q. Q. 3 and Q. 4.
• Attempt any two questions from Q. Q. 6 and Q. 7.
• All questions carry equal marks.
1. Analyze the following case
Cultural barriers is one of the most talked about in international business
problems. It is, however, very interesting to note that cross-border transmission
of culture is very rampant. Many politicians, sociologists and others are highly
critical of the invasion of the Western culture in the developing countries. The
export of American culture is interpreted as means to spread American
imperialism. The Coca Cola culture or the corn flakes culture or the pop culture,
the term which has come to be very broadly used to include, besides the pop
music and associated thing, the Western products and styles such as foreign
jeans, cola drinks, fast foods, Hollywood movies and like the youth, particularly,
are crazy about, has fast spread to the developed and developing countries.
The emergence of culture as economic goods that can be traded-crafts, music,
films, TV programmes, software, books, tourism etc.-has contributed very
substantially to the globalization of culture.
A UNESCO study shows that world trade in goods with cultural content-printed
matter, literature, music, visual arts, cinema and photographic, radio and
television equipment-has grown tremendously. For the United States the largest
single export industry is fllot aircraft, computers or automobiles-it is entertainment,
in films and television programmes. Hollywood films grossed more than $30
billion worldwide in 1997, and in 1998 a single movie, Titanic, grossed more
than $1.8 billion. As the Human Development Report 1999 points out, the vehicles
for this trade in cultural goods are the new technologies. Satellite
communications technology from the mid-1980s gave rise to a powerful new
medium with a global reach and to such global media networks as CNN. The
development of the Internet is also spreading culture around the world, over an
expanded telecommunications infrastructure of fiber optics and parabolic
antennas.
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The Report referred to above points out that the global market for cultural products
is becoming concentrated, driving out small and local industries. At the core of
the entertainment industry-film, music and television-there is a growing
dominance of US products, and many countries are seeing their local industries
wither. Although India makes the most films each year, Hollywood reaches
every market, getting more than 50 per cent of its revenues from overseas, up
from just 30 per cent in 1980. It claimed 70 per cent of the film market in Europe
in 1996, up from 56 per cent in 1987 and 83 per cent in Latin America and 50 per
cent in Japan. By contrast, foreign films rarely make it big in the United States,
taking less than three per cent of the market there. In the light of the above
account, evaluate the view that culture is a highly difficult barrier to international
business. What are the implications of the spread of pop culture for business
What could be the reasons for the adoption, particularly by the youth, of the pop
culture Can pop culture encourage achievement motivation Discuss the
social implications of the pop culture.
Analyze the case study.
Identify the problem.
Generate possible alternatives.
Choose the best alternative.
2. Write short note (any two)
Differences between international business and national business.
Non-Tariff Barriers.
The recent globalization trends and their impact on world economies.
3. Write short note (any two)
Countertrade.
Global strategy issues and ethics.
Differences between licensing and franchising.
4. Write short note (any two)
Functions and role of World Bank.
Advantages and risks of mergers and acquisitions.
Recruitment and selection of managers for international assignments.
5. How does international competition differ from domestic competition What is
the role of FDI in building export competitiveness
6. Reasons for growing dominance of MNCs. Discuss the role of MNCs in India.
7. Define international business. Discuss the scope of international business
activities in evolving new world economic order.