GU International Business Solved Question Paper'2023 [Gauhati University BCom 6th Sem Hons.]

 

GU BCom 6th Semester International Business Solved Question Paper 2023 - Gauhati University

2023

COMMERCE

(Honours Elective)

Paper: COM-HE-6046

Solved Paper 2023

(International Business)

Full Marks: 80

Time: Three hours

The figures in the margin indicate full marks for the questions

1. Answer the following questions: 1×10=10

(a)  The total number of members of SAARC is

(i) 7 

(ii) 8 

(iii) 9 

(iv) 10

(b) Write the full form of TRIPS. 

Ans:- The full form of TRIPS is Trade-Related Aspects of Intellectual Property Rights. 

(c) Import of goods and services for re- export to another country is called entrepot trade. (State True / False) 

Ans:- True. 

(d) A banker's acceptance fulfill 

(i) for medium term

(ii) for short term 

(iii) for long term 

(e) State any one law regulating FDI inflows in India.

Ans:- One law regulating FDI inflows in India is the Foreign Exchange Management Act, 1999.

(f) The UNCTAD was established in 

(i) 1967 

(ii) 1965 

(iii) 1964 

(iv) 1976

(g) What is the basic principle most. favoured nation (MFN)? 

Ans:- The basic principle of most favoured nation (MFN) is that countries should treat all their trading partners equally and not discriminate among them. 

(h) quota is considered a tariff tool of international trade. (Yes/No)

Ans:- Quota is considered a tariff tool of international trade. (Yes)

(i) India was one of the founder members of the WTO. (State True/False)

Ans:- India was one of the founder members of the WTO. (True)

(j) The World Bank started operation in 

(i) June, 1944

(ii) May, 1946 

(iii) June, 1946

(iv) None of the above

2. Answer the following questions in about 50 words : 2×5=10

(a) Write a short note on import duty. 

Ans:- Import duty is a tax levied by the government on the import of goods and services. It is used to raise revenue, protect domestic industries, and regulate trade. Import duty can be ad valorem, based on the value of the goods, or specific, based on the quantity or weight of the goods. 

(b) Write two negative impact of globalisation.

Ans:- Two negative impacts of globalisation are:

It can increase inequality and poverty by creating winners and losers in the global market. Some countries, sectors, and workers may benefit from globalisation, while others may lose out due to competition, outsourcing, and displacement. 

It can threaten the environment and cultural diversity by promoting unsustainable consumption, production, and resource use. Globalisation can also erode local cultures, values, and identities by spreading homogenous products, lifestyles, and norms. 

(c) Mention two distinct stages of product life cycle theory of international business.

Ans:- [DOWNLOAD PDF FOR COMPLETE SOLUTION]

(d) What is greenfield investment?

Ans:- Greenfield investment is a type of foreign direct investment (FDI) where a firm establishes a new subsidiary or facility in a foreign country from scratch. It involves building new infrastructure, hiring new employees, and creating new operations. Greenfield investment is usually more costly and risky than other forms of FDI, but it also offers more control and potential returns for the firm. 

(e) Give any examples of non-tariff measures of international business. 

Ans:- [DOWNLOAD PDF FOR COMPLETE SOLUTION]

3. Answer any four questions from the following in about 150 words : 5×4=20 

(a) What are the features of international business?

Ans:- [DOWNLOAD PDF FOR COMPLETE SOLUTION]

(b) Write a short note on special economic zones (SEZs).

Ans:-  [DOWNLOAD PDF FOR COMPLETE SOLUTION]

(c) Write a note on ASEAN.

Ans:- ASEAN, or the Association of Southeast Asian Nations, is a regional organization that aims to promote economic, political, social, and cultural cooperation among its 10 member states: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. Some of the salient features of ASEAN are:

1. It was established in 1967 with the signing of the Bangkok Declaration by the founding members: Indonesia, Malaysia, Philippines, Singapore, and Thailand.
2. It has a vision of creating an ASEAN Community that is based on three pillars: the ASEAN Political-Security Community, the ASEAN Economic Community, and the ASEAN Socio-Cultural Community.
3. It operates on the principles of consensus, consultation, non-interference, and respect for diversity and sovereignty.
4. It has a comprehensive network of dialogue partners, sectoral partners, development partners, and observers that enhance its external relations and cooperation.
5. It plays a key role in regional and global issues such as trade, security, environment, human rights, and development. 

(d) List out the items included in current account.

Ans:- [DOWNLOAD PDF FOR COMPLETE SOLUTION]

(e) What do you mean by 'Most Favoured Nation (MFN)' ?

Ans:- Most Favoured Nation (MFN) is a status or level of treatment granted by one country to another in international trade. It means that the country that receives the MFN treatment must receive the same trade advantages as the most favoured nation by the country that grants the treatment. These trade advantages include low tariffs, high import quotas, and reduced trade barriers. The main features of MFN are:

• It is based on the principle of non-discrimination and equal treatment among trading partners.
• It is one of the core rules of the World Trade Organization (WTO) that applies to all members of the organization.
• It helps to promote fair and free trade, increase market access, and reduce trade distortions.
• It has some exceptions and exemptions, such as preferential treatment for developing countries, regional trade agreements, and national security interests. 

(f) What are the objectives of World Bank? 

Ans:- [DOWNLOAD PDF FOR COMPLETE SOLUTION]

4. Answer any four questions from the following in about 600 words : 10×4=40 

(a) What do you mean by international business environment? Explain different forms of international business environment.

Ans:-  The international business environment is the complex network of economic, political, legal, and cultural forces that shape how organisations conduct international business. It consists of external and internal factors that impact a company’s success or failure in different markets. This concept involves understanding the global forces that affect businesses of all sizes. These elements shape how companies conduct their operations and make decisions from macroeconomic trends to geopolitical tensions. Globalisation has made it easier for businesses to go beyond local or regional markets, creating new opportunities while presenting new challenges. 

The different forms of international business environment are:

- Economic environment: This includes factors such as GDP growth rates, inflation, currency exchange rates, trade barriers, and regional integration. These factors affect the cost structures, profitability, market size, and demand for products and services in different countries. 

- Political environment: This includes factors such as political stability, government policies, regulations, and laws that affect the business operations and transactions in different countries. These factors influence the level of risk, uncertainty, and protection for businesses in different political systems. 

- Legal environment: This includes factors such as the legal system, the judicial system, the contract law, the intellectual property rights, the dispute resolution mechanisms, and the enforcement of laws and regulations in different countries. These factors affect the level of legal security, compliance, and liability for businesses in different legal systems. 

- Cultural environment: This includes factors such as the values, beliefs, attitudes, norms, customs, and practices of different societies and groups that affect the behaviour, preferences, and expectations of consumers, suppliers, partners, and employees in different countries. These factors affect the level of cultural awareness, adaptation, and communication for businesses in different cultural contexts. 

(b) What do you mean by Balance of Trade? Distinguish between Balance of Payment and Balance of Trade. 3+7=10

Ans:- [DOWNLOAD PDF FOR COMPLETE SOLUTION]

(c) What is SAARC ? Explain the significant role of SAARC in regional integration and development. 2+8=10 

Ans:- [DOWNLOAD PDF FOR COMPLETE SOLUTION]

(d) Discuss various sources of financing in international business.

Ans:- [DOWNLOAD PDF FOR COMPLETE SOLUTION]

(e) What is import quota ? How does it differ from tariff ? 2+8=10

Ans:- An import quota is a quantitative restriction on the amount of a good or service that can be imported from another country during a given period of time. It is usually imposed by the government of the importing country to protect domestic industries from foreign competition, to conserve foreign exchange reserves, or to achieve other policy objectives. An import quota can be either absolute, which specifies a fixed quantity limit, or tariff-rate, which specifies a lower tariff rate for imports within the quota and a higher tariff rate for imports above the quota. 

A tariff is a tax levied on the value of goods or services imported from another country. It is also used as a tool to limit trade, because tariffs increase the price of foreign goods or services and thus make them less competitive in the domestic market. Tariffs can be either ad valorem, which is a percentage of the value of the import, or specific, which is a fixed amount per unit of the import. Tariffs generate revenue for the government of the importing country and also affect the welfare of consumers, producers, and trading partners. 

The main differences between import quota and tariff are:

- An import quota restricts the quantity of imports, while a tariff restricts the price of imports. 

- An import quota creates a shortage in the domestic market, while a tariff creates a surplus in the domestic market. 

- An import quota does not generate revenue for the government, but creates quota rents for the importers who obtain the quota licenses, while a tariff generates revenue for the government, but creates deadweight losses for the society. 

- An import quota is more effective in reducing imports and protecting domestic industries than a tariff, but it is also more distortionary and less transparent than a tariff. 

- An import quota is more difficult to administer and monitor than a tariff, as it requires a system of allocation and enforcement of quota licenses, while a tariff can be easily collected at the border. 

(f) Explain the role of WTO in promoting international business. 3+7=10

Ans:- [DOWNLOAD PDF FOR COMPLETE SOLUTION]

(g) Discuss the role of FDI in India. 

Ans:-  [DOWNLOAD PDF FOR COMPLETE SOLUTION]

(h) What are the objectives of World Bank ? How far has it succeeded in fulfilling its objectives? Discuss.

Ans:- The World Bank is an international financial institution that provides loans, grants, and technical assistance to developing countries for various development projects and programs. The main objectives of the World Bank are:

- To end extreme poverty by reducing the share of the global population that lives in extreme poverty to 3 percent by 2030. 

- To promote shared prosperity by increasing the incomes of the poorest 40 percent of people in every country. 

- To support the global sustainable development agenda by addressing the most urgent environmental, social, and economic challenges. 

The World Bank has achieved some notable successes in fulfilling its objectives, such as:

- It has helped to reduce the global poverty rate from 36 percent in 1990 to 10 percent in 2015, lifting more than one billion people out of extreme poverty. 

- It has supported the achievement of the Millennium Development Goals, such as reducing child mortality, improving maternal health, combating HIV/AIDS, malaria, and other diseases, and ensuring universal primary education. 

- It has financed and implemented thousands of projects and programs in various sectors, such as infrastructure, agriculture, health, education, energy, water, sanitation, and social protection, which have improved the lives and livelihoods of millions of people. 

- It has provided policy advice, analytical work, and knowledge products to its clients and partners, which have enhanced their capacity and informed their decision-making. 

- It has fostered regional and global cooperation and integration by facilitating trade, investment, and knowledge flows among countries. 

However, the World Bank also faces some challenges and criticisms in fulfilling its objectives, such as:

- It has not been able to reach the most vulnerable and marginalized groups, such as women, children, minorities, refugees, and people in conflict-affected and fragile states, who still suffer from poverty, inequality, and exclusion. 

- It has not been able to address the root causes and structural factors of poverty and underdevelopment, such as governance, institutions, corruption, human rights, and democracy, which require political and social reforms. 

- It has not been able to adapt to the changing needs and preferences of its clients and partners, who demand more flexibility, diversity, and innovation in its products and services. 

- It has not been able to balance the interests and influence of its shareholders, especially the developed and emerging countries, who have different views and agendas on the role and direction of the World Bank. 

- It has not been able to ensure the effectiveness and efficiency of its operations and resources, which are often hampered by bureaucracy, delays, and costs.

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