Acharya Nagarjuna University (ANU) 2006 M.B.A Business Administration - I - INTERNATIONAL BUSINESS - Question Paper

M.B.A.(Third) DEGREE EXAMINATION, MAY 2006
(D-INTERNATIONAL MANAGEMENT )
PAPER - I - INTERNATIONAL BUSINESS

Time: 3 hours Maximum: 75 marks

part A - (3 X five = 15 marks)
ans any 3 ques.

1. (a) discuss how international business is various from domestic business.
(b) Compare ranging from FDI and contractual entry mode.
(c) discuss neo-factor proportions theory.
(d) elaborate various levels of Economic Integration?
(e) What is Matrix structure?
(f) elaborate merits of employing expatriates?

part B - (3 X 15 = 45 marks)
ans any 3 ques.

2. what are on the factors contributing to rapid growth in international business during the past 1 decade.

3. explain this statement: “An understanding of the causes and consequences of performance ambiguity is central to the problem of organsiational design in multinational firms”.

4. explain the process of recruitment and training of expatriates.

5. discuss how cultural diversity is managed with suitable examples.

6. discuss the conceptual framework of different kinds of regional trade agreements.

7. discuss in brief the functions of World Trade Organisation. elaborate the major principles of multilateral trading system?

part C - (1 X 15 = 15 marks)
(Compulsory)

8. Strategic R & D by TNCs in Developing Countries

TNCs have had long units in developing host countries for adapting products and processes to the local conditions, and in a few cases, to products for local markets. Since the min-1980s, however, they have also started locating strategic R & D centres in a few developing countries, for developing generic technologies and products for regional or global markets. The main incentives for this are : (a) access to highly qualified scientists as shortages of research personnel emerge in certain fields in industrialised countries, (b) Cost differentials in research salaries ranging from developing and industrialised countries, and (c) rationalisation of operations, assigning particular affiliates the responsibility for developing, manufacturing, and marketing particular products worldwide. Th new patterns are more visible in industries dealing with new technologies, such as microelectronics, biotechnology, and new materials. In these technologies, the location of R & D can be geographically de-linked more easily from the location of manufacturing. It is also possible to separate R & D in core activities from that in non-core activities. Consequently, countries like India, Israel, Singapore, Malaysia or Brazil serve TNCs as good locations for strategic R & D.

For instance, Sony Corporation of Japan has around 9 R & D units in Asian developing countries. It has 3 units in Singapore conducting R & D on core components such as optical data shortage devices, integrated chip design for audio products and CD-ROM drives, and multimedia and microchip software. It has 3 units in Malaysia working on video design, derivative models and circuit blocks for new TV chases, radio cassettes, discman and hi-fi receiver designs. It has 1 unit in Republic of Korea focusing on the design of compact discs, radio cassettes, tape recorders, and car stereos. It has 1 in Taiwan designing and developing video tape-recorders, minidisk players, video CDs, and duplicators. Finally, it has 1 unit in Indonesia focusing on the design of audio products.

Such units often work in collaboration with science and technology institutes in the host country. For instance, Daimler Benz has established such a unit in Bangalore, India, in collaboration with the Indian Institute of Science to work on projects related to its vehicles and avionics business. Current work includes interface design of avionics landing systems and smart GPS sensors for use by the group’s business worldwide.

Source: World Investment Report 1999.

Questions:
(a) discuss why MNCs have located R & D centres in developing countries?
(b) Mention the areas where R & D activities can easily be decentralised.

Earning:   Approval pending.