Mahatma Gandhi University (MGU) 2005 M.B.A Business Administration Global Business Environment - Question Paper

M.B.A. DEGREE EXAMINATION, MAY/JUNE 2005

Faculty of Management Studies

Semester III – Paper I – GLOBAL BUSINESS ENVIRONMENT

(Common for Branches I and II)

Time : 3 Hours Maximum {2003 Admissions – 75 marks
{Prior to 2003 Admissions – 100 marks

part A

ans any 6 ques..

Write short notes on:
1. International Business.
2. Globalization.
3. Foreign Investment.
4. Tariff and Non-Tariff Barriers.
5. WTO.
6. Euro currency market.
7. Nature of International capital market.
8. Joint ventures.
9. Negotiations in International Business.
10. Multilateral settlements.
(6 X three = 18 marks)
(6 X three = 18 marks)

part B

ans any 3 ques..

11. Explain the factors contributing to fast growth in international business during latest decades.
Or
12. Explain the major economic indicators the managers take into account before any international business decision.

13. What are the various techniques of exchange rate forecasting? What is forecast error?
Or
14. What impact will the new capital requirements have on international bank expansion on the Euro Currency Market?

15. In the era of globalization, advocate why social responsibility is important? Irrelevant?
Or
16. Explain the impact of globalization of Human Resources Development on MNC’s.
(3 X 11 = 33 marks)
(3 X 17 = 51 marks)

part C

17. Mr. Pratap Mehta went to Saudi Arabia for the 1st time on a business visit in 1998. During his sojourn at Riyadh, he purchased a matchbox for 1 Riyal. He was surprised at the price of the Matchbox as 1 Riyal is equal to Rs. 10 (around) and the matchbox in India cost Rs. 0.50 only. The price of a matchbox in Riyadh was ringering in his mind that night. At 1 point of time he got a awesome idea.

The idea included:

• Preparing a feasibility report for establishing a matchbox factory in Saudi Arabia.
• Importing necessary machinery from India.
• Obtaining necessary permissions from the Govt of Saudi Arabia.
• Selecting the market intermediaries in Saudi Arabia.
• Finally establishing the matchbox factory in Riyadh of Jeddah.

Mr. Pratap conducted a survey and concluded that the idea was commercially feasible and financially profitable.

Immediately, he approached a consultant in Jeddah and finalized the deal for getting the necessary permissions from the Government of Saudi Arabia.

The consultant organizes to get all the permissions. Mr. Pratap got all the permissions to establish the factory in Jeddah. Then he organizes to import the machinery and equipment from India. After importing the machinery and equipment, Mr.Mehta established the factory and started producing the matchboxes on a commercial scale in January 2000.

Mr. Mehta conducted a different market survey and fixed the price of every match box at Riyal 0.50 as the competitors matchboxes were priced at Riyal 1.00 in order to hit all the competing firms and get as much market share as possible.

Mr. Mehta released the 1st batch of matchbox into the market in March 2000. The 1st batch of the matchboxes were sold like hot cakes and Mr. Pratap was very much thrilled of his success. He released the 2nd batch into the market but unfortunately he could not sell even a single matchbox of the 2nd batch. The identical was the case of the following batches. Mr. Mehta was forced to close the factory.

(a) What were the reasons for highly positive response for the 1st batch?
(b) What was the cause for very poor response for the 2nd batch?
(c) Why did Mr. Ptatap Mehta fail in his project abroad?
(1 X 24 = 24 marks)
(1 X 31 = 31 marks)

Earning:   Approval pending.