International Business 2024 Solved Question Paper [Gauhati University BCom 6th Semester CBCS]

In this post, we provided International Business Solved Question Paper 2024 for Gauhati University BCom 6th Semester students. These Solved  Question Paper help students prepare for exams effectively.

GU BCom International Business Solved Question Paper 2024 

2024
Full Marks: 80
Time: Three Hours

International Business

Paper Code: COM-HE-6046

6th Semester (CBCS) Honours Elective

The figures in the margin indicate full marks for the questions.

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

(a) Which one of the following is the oldest international trade theory?
(i) Comparative advantage theory
(ii) Mercantilism theory
(iii) Absolute advantage theory
(iv) Heckscher-Ohlin theory
Answer: (ii) Mercantilism theory

(b) In which year was the product life cycle theory developed?
(i) 1972
(ii) 1978
(iii) 1970
(iv) 1976
Answer: (iii) 1970

(c) Which of the following nations is not a member of ASEAN?
(i) India
(ii) Brunei
(iii) Vietnam
(iv) Laos
Answer: (i) India

(d) The G-20 Summit for the year 2023 was held in
(i) Japan
(ii) Indonesia
(iii) India
(iv) Pakistan
Answer: (iii) India

(e) The IMF started functioning in
(i) December 1945
(ii) January 1946
(iii) March 1947
(iv) April 1946
Answer: (i) December 1945

(f) Which environment is beyond the control of the business?
(i) Internal
(ii) External
(iii) Micro
(iv) Macro
Answer: (ii) External

(g) The foreign direct investment includes
(i) Tangible goods
(ii) Intangible goods
(iii) Human resources
(iv) Intellectual property
Answer: (i) Tangible goods

(h) Write the full form of ASEAN.
Answer: Association of Southeast Asian Nations

(i) Import quota is considered a tariff tool of international business. (Yes/No)
Answer: No

(j) The current account in the balance of payments includes
(i) Merchandise trade and services
(ii) Total of all the visible items of trade
(iii) Borrowing
(iv) Autonomous and accommodating flow
Answer: (i) Merchandise trade and services

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

(a) State two basic principles of SAARC.
Answer: The two basic principles of SAARC are:

1. Sovereign Equality: All member nations are considered equal, regardless of their size or economy.

2. Non-Interference: SAARC strictly avoids involvement in the internal affairs of its member nations.

(b) Why do nations trade internationally?
Answer: Nations trade internationally to access resources, products, and services that may be unavailable or costly to produce locally. It also helps countries gain economic growth, improve efficiency, and foster better diplomatic relations.

(c) State the meaning of 'tariff' in international business.
Answer: A tariff is a tax imposed by a country on imported goods and services. It is used to protect domestic industries, generate government revenue, and regulate international trade.

(d) What are the main purposes of special economic zones?
Answer: The main purposes of Special Economic Zones (SEZs) are to promote foreign investment, boost exports, create employment opportunities, and enhance economic development by offering tax benefits and improved infrastructure.

(e) State two objectives of WTO.
Answer: The two main objectives of the WTO are:

1. Promote Free Trade: WTO aims to reduce trade barriers to facilitate smooth trade between countries.

2. Ensure Fair Competition: It ensures equal trade opportunities for all member nations by enforcing trade rules.

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

(a) Write a note on green field investment.
Answer: Green field investment refers to a type of foreign direct investment (FDI) where a company establishes its operations from scratch in a foreign country. This includes building new facilities such as offices, factories, and warehouses. Green field investments provide full control to the investing company, allowing them to implement their own strategies, policies, and management practices. While this type of investment demands high capital and resources, it creates significant employment opportunities and contributes to the economic growth of the host country. Companies often choose green field investment to expand their global presence in untapped markets.

(b) Explain the objectives of SAARC.
Answer: The key objectives of SAARC (South Asian Association for Regional Cooperation) are:

1. Promote Economic Growth: SAARC aims to improve the living standards and economic well-being of people in South Asia.

2. Strengthen Regional Cooperation: It encourages collaboration in trade, culture, and technological advancement.

3. Enhance Social Development: SAARC works to reduce poverty, improve education, and strengthen healthcare services.

4. Build Mutual Trust: It fosters peace, security, and understanding among member nations.

(c) Write a note on the positive impact of globalization.
Answer: Globalization has brought several positive impacts worldwide. It promotes international trade, enabling countries to access diverse products and services. It encourages foreign investments, which lead to economic growth and job creation. Technological advancements have accelerated due to improved global communication. Cultural exchange has increased, fostering greater understanding between nations. Additionally, globalization has improved access to information, education, and healthcare, contributing to overall global development.

(d) Distinguish between balance of trade and balance of payments.
Answer:

Aspect	Balance of Trade (BoT)	Balance of Payments (BoP)
Definition	The difference between a country's exports and imports of goods only.	A comprehensive record of all economic transactions (goods, services, investments, etc.) between residents of a country and the rest of the world.
Scope	Includes only visible trade (tangible goods).	Includes both visible trade (goods) and invisible trade (services, investments, and financial transfers).
Components	Considers only exports and imports of goods.	Includes Current Account, Capital Account, and Financial Account.
Balance Analysis	Can show either a trade surplus (exports > imports) or trade deficit (imports > exports).	Provides a broader view of a country's overall financial position with the rest of the world.
Indication	A positive BoT indicates a favorable trade position, while a negative BoT indicates an unfavorable trade position.	A positive BoP indicates an overall economic inflow, while a negative BoP indicates an outflow.
Dependency	BoT is a part of the BoP's current account.	BoP includes BoT along with other financial transactions.

(e) What are the various sources of trade finance? Explain.
Answer: The major sources of trade finance include:

1. Banks: Banks provide trade finance through letters of credit, bank guarantees, and trade loans.

2. Export Credit Agencies (ECAs): These agencies offer insurance and credit facilities to exporters.

3. Trade Credit: Suppliers extend credit terms to buyers, allowing them to pay later.

4. Factoring and Invoice Discounting: Businesses sell their invoices to financial institutions to get immediate cash.

5. Multilateral Financial Institutions: Organizations like the World Bank and IMF provide trade finance to developing nations.

(f) Explain the benefits of international business.
Answer: International business offers several benefits, including:

1. Increased Market Reach: Companies can expand their customer base globally, enhancing sales and revenue.

2. Resource Access: Nations can access raw materials, technology, and expertise unavailable domestically.

3. Risk Diversification: By operating in multiple countries, businesses reduce dependence on a single market.

4. Economic Growth: International trade encourages investment, boosts employment, and strengthens economies.

5. Cultural Exchange: It promotes better understanding and cooperation between nations through shared values and ideas.

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