Unit Iii Ibm
Unit Iii Ibm
Unit Iii Ibm
PART A
1. What are the characteristics of MNCs?
a. lower wage rates in certain areas
b. reduced transport cost
c. desires to be close to suppliers of components and raw materials.
d. Treats of interference by a host country government
2. How government can control MNC activities?
a. legal controls and regulation state subsidies for environmentally
positive activities
b. resource depletion and effluent emission taxes
c. central bank control the monetary transactions.
3. Define strategic management.
The process of determining an organizations basic mission and long-term
objectives then implementing a plans of action for attaining these goals.
4. Why strategic management is needed in International Business?
a. right combination of price and finance
b. identify the market segment
c. low costs
d. high profit
e. need for FDI
5. Define economic imperative.
A worldwide strategy based on cost leadership, differentiation and
segmentation.
6. Define global integration.
The production and distribution of products, services consist of
homogeneous type and quality on a worldwide basis.
7. What is national responsiveness?
The need to understand the different consumer tastes in segmented regional
markets and respond to different national standards and regulations.
8. Define global strategy.
Integrated strategy based primarily on price competition.
9. Distinguish between international strategy and transactional strategy.
International strategy deals with mixed strategy combining low demand for
integration and responsiveness.
Transactional strategy deals both global integration and local
responsiveness.
10. What are the steps in formulating strategy?
a. scanning the environment for opportunities and threats.
b. conducting an internal resource analysis of company strengths and
weaknesses
c. formulating goals in light of the external scanning and internal analysis.
11. Define environmental scanning.
The process of providing management with accurate forecasts of trends
related to external changes in geographic areas where the firm currently is
doing business or is considering setting up operations.
PART B
1. Explain the structural design of MNEs.
2. Explain national Vs global competitiveness.
Introduction, meaning, chart, conclusion (Ref; International
Management- Hodgetts PP- 242 - 244)
3. How can home countries control MNC operations?
Introduction, meaning, control of MNc operations-(Ref: International
Business- Roger Bennett pp-169- 177)
4. Discuss the pros and cons of MNCs
(Ref: Roger Bennett pp-162 - 169)