NAME ANKIT JUGRAN

PROGRAM MASTER OF BUSINESS ADMINISTRATION (MBA)

SEMESTER IV
COURSE CODE & NAME DMBA402 – INTERNATIONAL BUSINESS
MANAGEMENT

ROLL NO. 2114101713

SESSION AUG/SEP 2022

ASSIGNMENT SET-I

Q.1) What is International Business. Explain the reasons of doing international trade.
Answer: International business refers to the commercial transactions and exchanges that take place
between different countries or regions across the world. It involves activities such as importing and
exporting goods and services, foreign investments, and international collaborations. Below are some
of the key reasons why organizations engage in international trade:

1) Access to new markets: International trade enables organizations to expand their customer
base beyond their domestic market. By exporting goods and services to other countries,
organizations can tap into new markets and increase their revenue.

2) Access to resources: International trade also enables organizations to access resources that
may not be available in their home country, such as raw materials, labour, and technology.
By importing these resources, organizations can improve their competitiveness and
efficiency.

3) Economies of scale: International trade allows organizations to achieve economies of scale

by increasing their production and reducing their unit costs. By producing goods and
services on a larger scale, organizations can lower their costs and increase their profits.

4) Diversification: International trade also enables organizations to diversify their business

operations and reduce their reliance on a single market or product. By operating in multiple
markets, organizations can spread their risk and protect themselves against economic
fluctuations or political instability in a particular market.

5) Competitive advantage: International trade can provide organizations with a competitive

advantage by enabling them to offer unique products or services that are not available in the
 local market. By leveraging their expertise and capabilities, organizations can differentiate
themselves from competitors and gain a competitive edge.

6) Learning opportunities: International trade also provides organizations with opportunities

to learn from different markets and cultures, and to develop new skills and knowledge. By
working with international partners, organizations can gain valuable insights and experience
that can enhance their competitiveness and innovation.
In conclusion, international trade offers numerous benefits for organizations, including access to
new markets and resources, economies of scale, diversification, competitive advantage, and
learning opportunities. However, international trade also presents challenges such as language
barriers, cultural differences, legal and regulatory issues, and political risks. Organizations must
carefully evaluate the benefits and risks of engaging in international trade and develop
appropriate strategies to manage these challenges.

Q.2) Write short note on following:

i) Political Environment in IB
ii) Impact of Culture on IB
Answer: i) Political environment in IB:
The political environment in international business refers to the political conditions and factors that
can influence the operations of a company in a foreign market. Political factors such as government
stability, trade policies, regulations, and laws can have a significant impact on the success of an
international business. Political instability or conflicts in a foreign country can affect the safety of a
company's employees and assets, as well as disrupt its supply chain and distribution network. Trade
policies and regulations can affect the cost of doing business, such as tariffs and import quotas,
which can increase the price of goods and services. Legal and regulatory requirements can also vary
significantly across different countries, which can pose challenges for companies operating in
multiple markets. To succeed in the international business environment, companies need to
carefully assess the political risks and opportunities in different markets and develop appropriate
strategies to manage them.
ii) Impact of Culture on IB:
Culture plays a critical role in international business, as it can affect how people communicate,
behave, and make decisions. Cultural differences can create significant challenges for companies
operating in different markets, as they may have different values, beliefs, and norms that can
influence their business practices. For example, in some cultures, relationships and trust are more
important than contracts and legal agreements, while in others, punctuality and efficiency are highly
valued. Cultural differences can also affect communication styles, negotiation tactics, and decision-
making processes. To succeed in international business, companies need to develop cultural
intelligence and awareness and adapt their business practices to the local culture. This may involve
hiring local staff, building relationships with local partners, and developing products and services
that are tailored to local needs and preferences. Companies that fail to recognize and adapt to
cultural differences risk losing customers, damaging their reputation, and facing legal and
regulatory challenges.
 In conclusion, the political environment and cultural factors play a critical role in the
success of international business. Companies need to carefully assess the political risks and
opportunities in different markets and develop appropriate strategies to manage them. They
also need to develop cultural intelligence and awareness and adapt their business practices to
the local culture to succeed in international business. By understanding and managing these
factors, companies can expand their operations into new markets and achieve long-term
success in the global economy.

Q.3) Write notes on the following:

i) World Trade Organization
ii) International Labour Organization
Answer: i) World Trade Organization:
The World Trade Organization (WTO) is an international organization that is dedicated to
promoting free and fair trade among its member countries. Established in 1995, the WTO has 164
member countries and is headquartered in Geneva, Switzerland. The main objective of the WTO is
to ensure that trade flows as smoothly, predictably, and freely as possible between countries. To
achieve this objective, the WTO works to negotiate and enforce trade agreements, resolve trade
disputes, and provide technical assistance to developing countries to help them participate in the
global trading system. The WTO operates on the principle of non-discrimination, which means that
member countries are not allowed to discriminate against other member countries in trade matters.
The WTO has been instrumental in reducing trade barriers and increasing trade flows between
countries and has played a significant role in promoting economic growth and development around
the world.
ii) International Labour Organization:
The International Labour Organization (ILO) is a specialized agency of the United Nations that was
established in 1919. The ILO is dedicated to promoting social justice and promoting decent working
conditions and opportunities for all women and men around the world. The ILO has 187 member
countries and is headquartered in Geneva, Switzerland. The ILO works to set international labour
standards, promote social dialogue, and provide technical assistance and advice to member
countries on labour and employment issues. The ILO's work covers a wide range of issues,
including employment creation, social protection, gender equality, child labour, forced labour, and
occupational safety and health. The ILO has been instrumental in improving working conditions
and promoting social justice around the world and has played a key role in promoting sustainable
development and reducing poverty.
In conclusion, the World Trade Organization and the International Labour Organization are both
important international organizations that play a critical role in promoting economic growth and
social justice around the world. The WTO is dedicated to promoting free and fair trade among its
member countries, while the ILO is focused on promoting decent working conditions and
opportunities for all women and men. Both organizations work to set international standards,
resolve disputes, and provide technical assistance to member countries. By promoting economic
growth and social justice, these organizations help to create a more equitable and sustainable world.
 ASSIGNMENT SET-II

Q.4) What is International Marketing? Explain the types of Global marketing strategies.
Answer: International marketing refers to the application of marketing principles and techniques in
more than one country. It involves the process of planning, producing, promoting and distributing
goods and services in global markets to meet the needs of customers and create profits for
businesses. The ultimate goal of international marketing is to achieve business success and growth
in foreign markets by leveraging opportunities, minimizing risks and adapting to cultural
differences.
There are several types of global marketing strategies that businesses can use to enter and succeed
in international markets. These include:

1) Global Standardization Strategy: This strategy involves standardizing products, services,

and marketing campaigns across all countries to achieve economies of scale, cost savings,
and consistency in brand image and messaging. It assumes that consumer needs,
preferences, and behaviours are similar across countries and that a one-size-fits-all approach
is the most efficient way to achieve success in multiple markets.

2) Localization Strategy: This strategy involves adapting products, services, and marketing
campaigns to suit the unique needs and preferences of consumers in different countries. It
recognizes that consumers have different cultural, social, economic and political
backgrounds and that a tailored approach is needed to effectively target and serve them.

3) Transnational Strategy: This strategy combines the best elements of global standardization
and localization to achieve global efficiencies and local responsiveness simultaneously. It
involves leveraging global resources and capabilities to achieve economies of scale, while
also adapting to local conditions and needs to gain market share and customer loyalty.

4) International Strategy: This strategy involves exporting products and services to foreign
markets without making significant changes to the product or marketing approach. It is often
used by small and medium-sized enterprises (SMEs) as a way to test the waters in
international markets and gain experience before committing to more significant
investments.

5) Global Strategy: This strategy involves striking a balance between global standardization
and local adaptation by using a hybrid approach that combines global and local elements. It
involves creating a global brand image and messaging while also tailoring products,
services, and marketing campaigns to meet the unique needs of local customers.
 In conclusion, global marketing strategies are critical to the success of international marketing
efforts. Companies that understand the unique needs and preferences of consumers in different
countries can tailor their products and marketing campaigns accordingly and achieve success in
global markets. By using a combination of global standardization, localization, transnational,
international and global strategies, companies can leverage economies of scale, adapt to local
conditions, and create sustainable competitive advantages in international markets.

Q.5) What is FDI? Elaborate on the various types of foreign investment.

Answer: Foreign Direct Investment (FDI) refers to the investment made by a company or
individual from one country in a business or enterprise in another country. It involves the transfer of
capital, technology, skills, and management practices across borders. FDI is a crucial component of
international business and is used by companies to expand their global presence, access new
markets, and acquire strategic assets and resources.
There are different types of foreign investments, including:

1) Greenfield Investment: This involves the creation of a new business or enterprise in a

foreign country. The investor sets up a new operation from scratch, building a new facility,
hiring local workers, and developing new products or services.

2) Merger and Acquisition (M&A): This involves the purchase or acquisition of an existing
business or enterprise in a foreign country. The investor acquires the ownership rights and
control over the target company, which can include its assets, intellectual property, and
market access.

3) Joint Venture: This involves the creation of a new business or enterprise in a foreign
country through a partnership between two or more companies from different countries. The
partners share the risks, costs, and benefits of the venture and bring their respective strengths
and resources to the partnership.

4) Franchise: This involves the licensing of a company's brand, product, or service to a foreign
business in exchange for a fee or royalty. The franchisee is granted the right to use the
company's intellectual property and business model to operate a business in a foreign
market.

5) Portfolio Investment: This involves the purchase of stocks, bonds, and other financial
assets in a foreign country. The investor does not have a direct role in the management of the
 target company but seeks to earn a return on investment through capital gains and dividend
income.

In conclusion, foreign direct investment is an essential tool for companies to expand their global
reach and access new markets. The various types of foreign investment, including greenfield
investment, mergers and acquisitions, joint ventures, franchises, and portfolio investment, offer
different opportunities and risks for companies seeking to invest in foreign markets. By
choosing the right investment strategy and partnering with the right local stakeholders,
companies can navigate the challenges of doing business in a foreign country and achieve long-
term success and growth.

Q.6) Write notes on the following:

i. Strategic Planning Process:
ii. Code of Conduct in MNCs
Answer: i. Strategic Planning Process:
Strategic planning is the process of developing a comprehensive plan that outlines an organization's
goals, objectives, and strategies to achieve its desired outcomes. The strategic planning process
involves several steps that must be followed to ensure that the plan is developed successfully. These
steps include:
1) Environmental Analysis: This involves conducting an analysis of the external and internal
environment in which the organization operates. This includes analysing the market,
competition, and economic conditions that could affect the organization's performance.

2) Setting Goals and Objectives: This involves defining the organization's mission and vision,
as well as setting specific goals and objectives that align with the organization's mission and
vision.

3) Developing Strategies: This involves developing strategies that will enable the organization
to achieve its goals and objectives. This includes identifying the resources required to
implement the strategies.

4) Implementation: This involves implementing the strategies developed during the planning
process. This includes allocating resources, establishing timelines, and monitoring progress.

5) Evaluation: This involves evaluating the success of the plan against the organization's goals
and objectives. This includes reviewing the progress made and making adjustments as
necessary.
ii) Code of Conduct in MNCs
A code of conduct is a set of guidelines that govern the behaviour of employees and managers
within an organization. Multinational corporations (MNCs) are often subject to a code of conduct
that reflects their commitment to ethical business practices and social responsibility. The purpose of
a code of conduct in MNCs is to ensure that the organization operates in a manner that is consistent
with its values and principles.
The code of conduct for MNCs typically includes guidelines for ethical behaviour, such as respect
for human rights, environmental sustainability, and compliance with laws and regulations. It may
also include provisions for reporting and addressing unethical behaviour, such as whistleblowing
procedures and channels for reporting violations.
MNCs typically develop their code of conduct through a process of consultation with stakeholders,
including employees, customers, suppliers, and local communities. This ensures that the code of
conduct reflects the values and concerns of all stakeholders and is appropriate for the context in
which the MNC operates.
Enforcement of the code of conduct is essential to ensure that it is effective. MNCs may establish
internal monitoring systems to ensure compliance with the code of conduct and may also work with
external organizations to verify compliance. In addition, MNCs may use social auditing or
sustainability reporting to demonstrate their commitment to ethical business practices and social
responsibility.
In conclusion, a code of conduct is a crucial component of the corporate governance framework for
MNCs. It helps to ensure that the organization operates in a manner that is consistent with its values
and principles and that it meets the expectations of stakeholders. The development and enforcement
of a code of conduct requires a collaborative approach and ongoing engagement with stakeholders
to ensure that the code reflects their values and concerns.