Total No. of Questions 08] [Total No. of Pages 02
EXECUTIVE M.B.A. DEGREE EXAMINATION, MAY 2018
First and Second Years
INTERNATIONAL BUSINESS
Time 3 Hours Maximum Marks :70
SECTION A
Answer any three questions. x 5 15)
Q1) International trade.
MNC
Logistics.
Trade barriers.
Letter of credit.
Custodian.
SECTION B
Answer any three of the following questions. x 15 45)
Q2) Explain the various theories of international trade in brief.
Q3) How is strategic planning done in multinational companies? Explain.
Q4) Explain about multinational culture in corporations.
Q5) What are the negotiations in international business? Explain.
Q6) Explain the human resource management in MNC's.
Q7) Describe the role of international organizations.
SECTION C
(Compulsory) (10 Marks)
Q8) Case Study:
The Star Corporation is a Hong Kong manufacturing firm that the going to do
business in mainland China. The company's contract with the Chinese
government calls for it to supply technical know-how and machinery for
producing consumer electronics. These products are not state of the art, but they
will be more than adequate for the needs of the Chinese consumers. Star has
agreed to sell the Chinese its plant, which was being closed because it was no
longer competitive.
The Chinese will pay to move all the machinery and equipment to their country
and install it in a factory that is currently being modified for this purpose. The
two will then become partners in the venture. Star will provide the management
and technical expertise to run the plant, and the Chinese will provide the workers
and will be responsible for paying for all the output. Star will receive an annual
fee of million and 5 percent of all sales.
The Star management is very pleased with the arrangement although they are of
Chinese descent, they have lived in Hong Kong all their lives and know
relatively little about doing business either with or in China. To provide Star with
the necessary information and assistance, a native of China, educated there but
living in Hong Kong the past 5 years, was brought in. The individual told the
company the following facts about China:
Chinese managers do not plan. They are usually told what to do and they do it.
Planning is handled by others and simply passed on to them.
Chinese managers are not concerned with profit or loss. They simply do their
jobs and let the government worry about whether the operation is making money.
No rewards are given to workers who perform well; everyone is treated the same.
If there is no work, the workers are still paid, although they may not be required
to come to the factory.
There is a basic aversion to individual decision making; most decisions are
collective efforts.
The current government of China would like its managers to learn how to run a
profit oriented operation and eventually eliminate the need for foreign
managerial assistance.
When outsiders tell Chinese how to do things, they have to be careful not to
insult or offend the Chinese who are often sensitive about the way they are
treated.
Questions:
What selection criteria would you recommend to Star when deciding whom
to send to China?
What procedures should the company use in making the final selection? and
What type of repatriation agreement would you recommend the firm use?