IB0012 – Management of Multinational Corporations

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ASSIGNMENT

DRIVE WINTER	2013
PROGRAM	MBADS – (SEM 3/SEM 5) / MBAN2 / MBAFLEX – (SEM 3) / PGDIB – (SEM 1)
SUBJECT CODE & NAME	IB0012 – Management of Multinational Corporations
BK ID	B1200
CREDITS	4
MARKS	60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

1 Discuss the relationship between international business and international organizations. What could be the objectives of going international?

Answer : International business

Every major industry has been affected by international business trends, innovations and trade. Foster's international business curriculum prepares students for careers in export and import firms, international banking, multinational business, government agencies, international organizations and more.

International business comprises all commercial transactions (private and governmental, sales, investments, logistics, and transportation) that take

2 Discuss the following theories of international trade:

a) Comparative cost advantage theory

Answer : According to Smith’s Theory trade would take place between countries only if the country enjoys an absolute cost advantage in production of a particular commodity over another.

However, it is seen in some cases that country A enjoys a produces all commodities at a cost lesser than country B. But, despite this country A ends up importing some commodities from country B. Ricardo explained this using his theory of Comparative Cost Advantage.

According to this theory, country A may

b) Porter’s theory

Answer : Porter's five forces analysis :

Porter identified five factors that act together to determine the nature of competition within an industry.  These are the:

1. Threat of new entrants to a market
2. Bargaining power of suppliers
3. Bargaining power of customers (“buyers”)
4. Threat of substitute products
5. Degree of competitive rivalry

Explanation :

3 Many countries are apprehensive about permitting MNCs operations. What are the possible reasons for this?

Answer : In an attempt to cut costs, many multinational corporations (MNCs) export their polluting activities through subsidiaries established in less developed countries. This exporting of pollutants is a crucial environmental issue[i]. Environmental pollution does not necessarily need to cross a country’s borders in the form of a substance, it can also pass the frontier through a decision taken in one state leading to environmental consequences in another (Scovazzi, 1991: 395). To put it differently, environmental degradation resulting from the subsidiary’s activities can often be traced back to the regulatory orders of the parent company.

4 Compare the management styles in USA and Japan.

Answer : Management styles and practices in China:

In Confucian philosophy, all relationships are deemed to be unequal. Ethical behaviour demands that these inequalities are respected. Thus, the older person should automatically receive respect from the younger, the senior from the subordinate. This Confucian approach should be seen as the cornerstone of all management thinking and issues such as empowerment and open access to all information are viewed by the Chinese as, at best, bizarre Western notions.

Thus, in China, management style tends towards the directive, with the senior manager giving instructions to their direct reports who in turn pass

5 Explain the scope of comparative management.

Answer : Comparative management is the study of various management principles, and how they apply from one situation to another. Such as with international companies. How these principles relate from one country to another. Management of international corporations is not a one size fits all scenario. There are many factors that will need to be taken into account. Among those are customs and social norms that vary from country to country. In some countries, care must be taken to address certain religious customs of the workforce.

6 Write short notes on:

a) Ethical issues in international management

Answer :  There is an increasing emphasis on the corporate responsibility of large organisations from developed nations and the way they operate in third world countries. Many nations now impose their ethical standards on developing countries even though they themselves have been guilty of arguably unethical practices in the past. For example, the poor working conditions suffered in the third world were commonplace during the industrialisation of many western economies.

Some of the most common international ethical issues surround the environment, child labour, working standards and conditions, targeting marketing to

b) Social responsibility

Answer : Being Socially Responsible means that people and organisations must behave ethically and with sensitivity toward social, cultural, economic and environmental issues. Striving for social responsibility helps individuals, organisations and governments have a positive impact on development, business and society with a positive contribution to bottom-line results.

Social Responsibility can be “negative,” in that it is a responsibility to refrain from acting (resistance stance) or it can be “positive,” meaning there is a responsibility to act (proactive stance). Being socially responsible  not only requires

Dear students get fully solved assignments

Send your semester & Specialization name to our mail id :

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