MBA INTERNAL ASSIGNMENT JAIPUR NATIONAL UNIVERSITY
PAPERTITLE - INTERNATIONALBUSINESS
QUESTION-1ANSWER ALL THESE QUESTIONS
(i) What isthe dirrerence betweenglobal andinternational business
ANS- Global vs International
1.“Global” is a word that is used to refer to issues and concerns of
the entire world while “international” is a term that is used to
refer to issues and concerns of two or more countries.
2.“International” has a smaller scope encompassing only two or
more countries while “global” has a much larger scope which
includes the whole world.
3.Although they are sometimes used in lieu of each other, “global”
means “all-encompassing and worldwide” while “international”
means “foreign or multinational.”
4.Global companies have offices and branches as well as
investments in other countries while international companies
export their products and import the products of the country with
which they have international trade relations but hold no
investments in each other’s economies.
(II) State the differencebetweencentralizedanddecentralizedstructure
ANS- The terms centralization and decentralization refer to the
political and administrative structure of a country. In a
centralized state, the power and the authority are concentrated in
2. the hands of the central government, which takes decisions and
performs most functions. Conversely, in a decentralized
state, power and responsibilities are dispersed and distributed
across regions and areas. While all centralized governments have
common features and similar characteristics, not all decentralized
countries are the same.
(ii) What is balance of payment?
ANS- The balance of payments (BOP) is the method countries use to monitor
all international monetary transactions at a specific period. Usually, the BOP is
calculated every quarter and every calendar year. All trades conducted by both
the private and public sectors are accounted for in the BOP to determine how
much money is going in and out of a country. If a country has received money,
this is known as a credit, and if a country has paid or given money, the
transaction is counted as a debit.
(IV) Write any twobarriersof international business?
International trade is carried out by both businesses and governments—as long
as no one puts up trade barriers. In general, trade barriers keep firms from selling
to one another in foreign markets. The major obstacles to international trade are
natural barriers, tariff barriers, and nontariff barriers.
Language is another natural trade barrier. People who can’t communicate
effectively may not be able to negotiate trade agreements or may ship the wrong
(v) Write any twoimportance of logisticmanagement?
ANS- Warehouse Management
3. Effective logistics management is incomplete without proper warehouse
management. Warehouse operations are considerably dependent on the type
For example, perishable goods, such as dairy products, needs refrigeration
facilities. Grains should be stored in moisture free environment. Similarly, the
specifications vary according to the products. The logistics firm should aim at
developing the warehouse inventory so that there is minimum wastage of
Determining the best delivery route. A logistics firm should opt for
the shortest yet safest route. This is beneficial for saving money as
well as time.
Cost-effective packaging that ensures low investment and safety of
goods as well. Optimize the packaging so that it occupies less
volume and it does not increase the weight of the package
ANS-2 Explain the economic and political environment which effect
Political Environment in International Business
The political environment in international business consists of a set of political factors and
government activities in a foreign market that can either facilitate or hinder a business' ability to
conduct business activities in the foreign market. There is often a high degree of uncertainty when
conducting business in a foreign country, and this risk is often referred to as political
risk or sovereign risk.
4. Common Political Factors
Let's look at some common political factors that influence the international business landscape. The
type of economic system a country builds is a political choice. Foreign countries often will have
different economic systems from your domestic market, and adjustments often need to be made to
take these differences into account.
For example, a country may operate in a market economy where private individuals own most of
the property and operate most of the businesses. A market economy is usually the best economic
environment for a foreign business because of the protection of private property and contract rights.
Some countries lean more towards a socialist economy where many industries and businesses are
owned by the state. Operating businesses in this environment will be more difficult, but products can
still be produced and sold as people still pick their jobs and earn money.
A few countries operate under a communistic economic system where the state pretty much
controls all aspects of the economy. Conducting business in this environment ranges from difficult to
Of course, the reality is that all economies are mixed economies that take parts from two or more of
the 'pure' economic systems. For example, you can conduct business in communist China in Hong
Kong and other special areas where a market economy is allowed to operate.
Businesses also must often contend with different governmental systems. Examples include
democracies, authoritarian governments, and monarchies. Some governments are easier to work
with than others. Democracies, for example, are answerable to their citizens and the rule of law.
Authoritarian regimes are usually answerable to no one, including the law. It is less risky to
conduct business in democracies and constitutional monarchies, a monarchy with a constitution
that protects the public and subjects the monarch to the rule of law, than in countries with
The political environment is perhaps among the least predictable
elements in the business environment. A cyclical political environment
develops, as democratic governments have to pursue re-election every few
years. This external element of business includes the effects of pressure groups.
Pressure groups tend to change government policies.
As political systems in different areas vary, the political impact differs. The
country’s population democratically elects open government system. In
totalitarian systems, government’s power derives from a select group.
Corruption is a barrier to economic development for many countries. Some
firms survive and grow by offering bribes to government officials. The success
and growth of these companies are not based on the value they offer to
5. Below, is a list of political factors affecting business:
Freedom of the press
Data protection law
Health and safety law
Regulation and deregulation
Tax policy (tax rates and incentives)
Government stability and related changes
Government involvement in trade unions and agreements
Import restrictions on quality and quantity of product
Intellectual property law (Copyright, patents)
Consumer protection and e-commerce
Laws that regulate environment pollution
Global business planning system
The people at the helm of your company must be savvy in your kind of business at an
international level. You will discuss your research into the complexities of the global markets
6. you are targeting, including how you plan to supply your product or service in targeted
Determining demand is more difficult, so you need to scope out competitive products
available, economic realities and viable pricing structures. Detail the startup costs,
operational costs, expansion plans and the initial and ongoing investment necessary to
function. Detail your organization's hierarchy of personnel, Allegro Invests advises.
Components of a global business plan, which differ from other focus on global
customers, global pricing and currency issues, and international market legal factors, to
name a few distinctions listed by Allegro Invest. Investors and foreign governments
want to know that your business plan outlines your present reality, anticipates your
future goals and communicates how and when you plan to reach your objectives. That
means you need to determine the risks and potential return on investment ROI. This
section will distinguish itself from a non-global business plan. Finally, show the
numbers. This is also where you list all licenses, permits, trademarks, patents and other
legalities. An executive summary includes components, including but not limited to, a
business overview, which describes the company, the projected market and the
intended product or service. Explain how you plan to market to the countries you will
initially introduce your company.
The plan should specify how you plan to utilize and train a local workforce and the costs
to relocate management. Include financial results, such as capital growth and profits,
advises Allegro Invest.
various stages of international business
Executive Summary Component An executive summary describes the owner's goals and
targets. You will discuss your research into the complexities of the global markets you
are targeting, including how you plan to supply your product or service in targeted
countries. For example, if you plan to start in one country and grow over time into
other regions, discuss that plan. Provide any investment requirements for business
operations. Determining demand is more difficult, so you need to scope out competitive
products available, economic realities and viable pricing structures. Organizational
Structure The section of your global business plan on organizational structure describes
your management model. This is also where you list all licenses, permits, trademarks,
patents and other legalities. Provide each person's credentials. The plan should specify
how you plan to utilize and train a local workforce and the costs to relocate
7. management. It also includes a strategy for understanding the global marketplace,
foreign location operations, legal commitments and the necessary parameters to make
your business work in the proposed location. Global business plans differ from other
business plans by serving as a company's communications vehicle for its global
operations. Include financial results, such as capital growth and profits, advises Allegro
Explain how you plan to market to the countries you will initially introduce your
company. Provide each person's credentials.
Elements of international business
References 3. Include financial results, such as capital growth and profits, advises Allegro
Invest. Detail the startup costs, operational costs, expansion plans and the initial and ongoing
investment necessary to function. If you plan to produce your product overseas, explain that
dynamic here. You will discuss your research into the complexities of the global markets you are
targeting, including how you plan to supply your product or service in targeted countries. Global
business plans differ from other business plans by serving as a company's communications
vehicle for its global operations. Basic Contents In your global business plan, include a definition
of the nature and scope of your business and the product or service you provide. References 5.
For example, if you plan to start in one country and grow over time into other regions, discuss
that plan. Explain how you plan to market to the countries you will initially introduce your
company. The people at the helm of your company must be savvy in your kind of business at
an international level. Cover your proposed locations and why they fit your business plan.
Provide any investment requirements for business operations. Identifying vendors and suppliers
should be part of your overall plan.