IB0012 – Management of Multinational Corporations

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DRIVE: WINTER 2014

PROGRAM: MBADS (SEM 3/SEM 5) MBAFLEX/ MBA (SEM 3) PGDIB (SEM 1)

SUBJECT CODE & NAME: IB0012 – Management of Multinational Corporations

BK ID: B 1906

CREDIT & MARKS: 4 CREDITS, 60 MARKS

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Q.1: ‘The eclectic theory is an analytic approach towards understanding foreign direct investment as well as the organizational issues of MNCs pertaining to international production.’ Critically examine this statement.

Discussion on the statement (10 marks)

Ans:

Under FDI an MNC enters a foreign country to produce the same products or provide the same service which are produced or provided in home country. In this way the same

Q.2: What do you understand by global sourcing? What are the different forms of global sourcing? Elucidate.

Meaning of global sourcing (4 marks)

Forms of global sourcing (6 marks)

Ans:

Meaning of global sourcing

A procurement strategy in which a business seeks to find the most cost efficient location formanufacturing a product, even if the location is in a foreign country. For example, if a toy

Q.3: Why is a good organizational structure needed? Also discuss the benefits of a good organizational structure.

Need of good organization structure (5 marks)

Benefits (5 marks)

Ans:

Need of good organization structure:

Organization structures are related to setting up of internal authority relationships, responsibility for work performance, communication and control methods. These structures are established to blend the specialized expertise which is needed to facilitate decision

Q.4: How is the performance of employees assessed and appraised in multinational corporations? Explain in brief.

Performance appraisal in MNCs (10 marks)

Ans:

The concept of multi-nationality has a number of dimensions. For some the criterion may be ownership of the organization whereas for others it may be nationalities of the senior management. Some may decide on the basis of multi-country organization structure and operations. MNCs the source of multinational managerial control is technology including

Q.5: What are the main reasons pertaining to the inadequate attention towards issues relating to labour relations in MNCs?

Reasons (10 marks)

Ans:

MNCs use the resources of the host countries in most efficient manner so as to gain the maximum ignoring the wishes of the local politicians. The MNCs no doubt bring capital and

Q.6: Write short notes on:

a. Indian MNCs (5 marks)

b. FDI and MNC (5 marks)

Ans:

a. Role and growth of Indian MNCs with examples

Indian MNCs are small in size. In recent years, due to the policy of economic reforms, Indian Companies are also becoming global. Some of the prominent Indian MNCs are:

i) Tata Steel

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