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ASSIGNMENT
SESSION AUG/SEP 2022
PROGRAM MASTERS OF BUINESS ADMINISTRATION
SEMESTER SEM IV
COURSE CODE & NAME DMBA402 INTERNATIONAL BUSINESS
MANAGEMENT
CREDITS 4
NUMBER OF ASSIGNMENTS & 02
MARKS 30 Marks each

Instructions:
1. Kindly answer in your own words. Don’t just copy and paste from reference materials.
2. Upload only in PDF format in LMS.
3. Upload the correct file in LMS to avoid any consequences.
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately
400 - 450 words. Each question is followed by an evaluation scheme.
Q.N Assignment Set – 1 Marks Total
o Questions Marks
1. What is International Business. Explain the reasons of doing 2+8 10
international trade.
2. Write short note on following: 5+5 10
1. Political Environment in IB
2.Impact of Culture on IB
3. Write notes on the following: 5+5 10
1. World Trade Organization
2. International Labor Organization

Q.N Assignment Set – 2 Mark Total

o Questions s Marks
1. What is International Marketing? Explain the types of Global 5+5 10
marketing strategies
2. What is FDI? Elaborate on the various types of foreign 2+8 10
investment.
3. Write notes on the following: 5+5 10
3. Strategic Planning Process
4. Code of conduct in MNCs

1. What is International Business. Explain the reasons of doing international trade.

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International business encompasses all commercial activities that take place to promote the
transfer of goods, services, resources, people, ideas, and technologies across national
boundaries.
International business occurs in many different formats:

 The movement of goods from country to another (exporting, importing, trade)

 Contractual agreements that allow foreign firms to use products, services, and
processes from other nations (licensing, franchising)
 The formation and operations of sales, manufacturing, research and development,
and distribution facilities in foreign markets

Reasons for doing international business are as follows…

 Reduced dependence on your local market

Your home market may be struggling due to economic pressures, but if you go global,
you will have immediate access to a practically unlimited range of customers in areas
where there is more money available to spend, and because different cultures have
different wants and needs, you can diversify your product range to take advantage of
these differences.

 Increased chances of success

Unless you’ve got your pricing wrong, the higher the volume of products you sell, the
more profit you make, and overseas trade is an obvious way to increase sales.  In
support of this, UK Trade and Investment (UKTI) claim that companies who go global
are 12% more likely to survive and excel than those who choose not to export.

 Increased efficiency
Benefit from the economies of scale that the export of your goods can bring – go
global and profitably use up any excess capacity in your business, smoothing the load
and avoiding the seasonal peaks and troughs that are the bane of the production
manager’s life.

 Increased productivity
Statistics from UK Trade and Investment (UKTI) state that companies involved in
overseas trade can improve their productivity by 34% – imagine that, over a third
more with no increase in plant.

 Economic advantage
Take advantage of currency fluctuations – export when the value of the pound
sterling is low against other currencies, and reap the very real benefits.  Words of
warning though; watch out for import tariffs in the country you are exporting to, and
keep an eye on the value of sterling.  You don’t want to be caught out by any sudden
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upsurge in the value of the pound, or you could lose all the profit you have worked so
hard to gain.

Innovation

Because you are exporting to a wider range of customers, you will also gain a wider
range of feedback about your products, and this can lead to real benefits.  In fact,
UKTI statistics show that businesses believe that exporting leads to innovation –
increases in break-through product development to solve problems and meet the
needs of the wider customer base.  53% of businesses they spoke to said that a new
product or service has evolved because of their overseas trade.
Growth
The holy grail for any business, and something that has been lacking for a long time in
our manufacturing industries – more overseas trade = increased growth
opportunities, to benefit both your business and our economy as a whole.

Qno-2

1. Political Environment in IB

The political environment means the political risk, the government’s relationship with a
business, and the type of government in the country. Conducting business internationally
implies dealing with different kinds of governments, levels of risk and relationships.

There are different types of political systems, such as one-party states, multi-party
democracies, dictatorships (military and non-military) and constitutional monarchies. Thus,
an organisation needs to take into account the following aspects while planning a business
plan for the overseas location:

• Political system of the business

• Approach of the government towards business, i.e. facilitating or restrictive

• Incentives and facilities offered by the government

• Legal restrictions for licensing requirements and reservations to a specific sector like the
private, public or small-scale sector

• Restrictions on importing capital goods, technical know-how and raw materials

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• Restrictions on exporting services and products

• Restrictions on distribution and pricing of goods

• Required procedural formalities in setting the business

2.Impact of Culture on IB

Importance and Role of Culture in International Business

Culture has various definitions, but in the simplest terms, culture refers to the norms,
beliefs, ideas, attitudes, and social behavior of an individual or society. In a way, culture is
the coming together of different experiences, values, beliefs, and ideas that influence the
behavior and attitude of a community, a particular person, or a group. Some essential
cultural elements are religion, language, gender roles, social structure and dynamics,
traditions, laws, and customs.

Cultural adaptation in international business encompasses organizational culture as well as

national cultures and traditions. It helps the organizations to have a better understanding of
how local businesses and the workforce function.  

Let’s look at some aspects of the significance of culture in international business to better
understand how it shapes global companies:

Entry into new markets

Conducting international business involves entering new markets. Companies must display
sensitivity towards different cultures when dealing with foreign clients or planning a
marketing campaign for their foreign subsidiaries. Business executives should start by
studying the local market's beliefs, values, and customs.

Business negotiations
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Different cultures have distinct perspectives on business negotiations. While some consider
negotiations a signed contract between two parties, others view it as the beginning of a
strong business relationship. Therefore, you must understand how your counterpart views a
negotiation’s purpose, whether they want to build a long-term rewarding relationship or are
looking at it as a one-time deal.

Personal styles

Culture in international business strongly influences personal style, from an individual’s

dressing sense to interacting with others. Each culture has its customs and formalities for
business negotiations and meetings. Hence, knowing the subtleties of foreign cultures and
respecting appropriate formalities go a long way in making the right impression and bagging
crucial business deals.

Team organization

Culture is a decisive factor that affects how organizations negotiate a deal. While some
believe in consensus decision-making, others believe in the supremacy of a single leader
who takes all decisions. Whether the culture promotes hierarchical roles or societal
equality, these values affect all parties in a business deal. Hence, business executives should
understand how teams in different cultures organize and participate in decision-making. 

Inclusion and diversity

An organization that welcomes cross-cultural people, ideas, and customs create a

benchmark as an inclusive and diverse workspace. Sensitivity and acceptance of diverse
cultures help create a dynamic and talented workforce. Plus, these values leave a lasting
impression on clients, customers, investors, and stakeholders. 

International Business and Cross-cultural Challenges

The relationship between culture and international business has its rough patches. Below
we have enlisted a few of the cross-cultural challenges that affect businesses globally:
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Understanding local business practices

One of the core cultural issues in international business is the failure of organizations to
understand local business customs. Ignorance of how to conduct business in a foreign
country without considering cultural, political, and economic influences is a significant
roadblock in international trade. 

For instance, in some Asian countries, culture strongly influences how the workforce
responds to management roles. In Japan, social hierarchies are valued, and seniors are paid
the utmost respect. However, in the US, there is a comparatively flat organizational
structure.

Identifying regional differences

Most often, organizations focusing on the bigger picture overlook regional differences in
emerging markets. Subcultures go beyond regional and ethnic variations to include other
elements, such as differences in female and male consumer behavior and thinking.

Adapting business models to the local market

Culture strongly influences consumer attitude and behavior. However, many companies go
by the one-size-fits-all approach without realizing that personalization is the secret to
creating a large and diverse customer base. They must restructure their business models to
reflect local customs, habits, and preferences of different buyer personas.

Adapting human resource policies

Attracting, retaining, and leveraging global talent can be challenging for a culturally ignorant
foreign company that employs local staff. Organizational commitment, job satisfaction,
motivation, and conflict resolution vary across cultures. The key to understanding these
differences is rethinking the human resource policies to accommodate local cultural profiles.
Human Resource teams should be aware of the cultural differences while recruiting and
communicating with foreign employees. 
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Creating a diverse and inclusive workplace

A diverse and inclusive workplace attracts and retains top global talent, responds to the
diverse needs of customers, increases access to new clients, fosters creativity, and drives
innovation. Diversity and inclusion issues vary across nations, and one shall take note that
bias, discrimination, and cultural conflicts are barriers to international trade. 

Adapting management practices

Every organization has unique management models and practices with specific underlying
cultural principles. While it sounds perfect, the problem arises when these practices
dissipate across cultures without factoring in cultural variations. It becomes the
organization’s responsibility to educate its staff on how to overcome the multiple layers of
cultural barriers. 

Addressing the Cultural Barriers in International Business

Given the significance of culture in international business and the cross-cultural challenges
involved, it makes sense to ask: 

How do we overcome the cultural barriers in international business?

Effective and successful cross-cultural management in international business can be

daunting. It is not enough to be aware of the cultural barriers disrupting international
business relations - you must also be prepared to tackle the issues. 

Create a culturally aware workplace

One of the best ways to overcome cultural differences in global business is to create space
for the cultural requirements of your colleagues and employees in a foreign country. For
instance, factor in cultural and religious holidays, customs, and dietary needs and integrate
them into your organization’s policies to make everyone feel included. 

Promote open communication

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International business and cross-cultural communication go hand-in-hand. Promoting a
culture of open communication is the only way culturally 

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3) Write notes on the following:

1. World Trade Organization.

The World Trade Organization (WTO) is the only global international organization
dealing with the rules of trade between nations. At its heart are the WTO
agreements, negotiated and signed by the bulk of the world’s trading nations and
ratified in their parliaments. The goal is to help producers of goods and services,
exporters, and importers conduct their business.

There are a number of ways of looking at the World Trade Organization. It is an organization
for trade opening. It is a forum for governments to negotiate trade agreements. It is a place
for them to settle trade disputes. It operates a system of trade rules. Essentially, the WTO is
a place where member governments try to sort out the trade problems they face with each
other.
The WTO is run by its member governments. All major decisions are made by the
membership as a whole, either by ministers (who usually meet at least once every two
years) or by their ambassadors or delegates (who meet regularly in Geneva).
The WTO agreements are lengthy and complex because they are legal texts covering a wide
range of activities. But a number of simple, fundamental principles run throughout all of
these documents. These principles are the foundation of the multilateral trading system.
The World Trade Organization — the WTO — is the international organization whose
primary purpose is to open trade for the benefit of all.
A starting point for essential information about the WTO.

2) International Labor Organization

The International Labour Organization (ILO) is a United Nations agency whose mandate is

to advance social and economic justice by setting international labour standards.[1] Founded
in October 1919 under the League of Nations, it is the first and oldest specialised agency of
the UN. The ILO has 187 member states: 186 out of 193 UN member states plus the Cook
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Islands. It is headquartered in Geneva, Switzerland, with around 40 field offices around the
world, and employs some 3,381 staff across 107 nations, of whom 1,698 work in technical
cooperation programmes and projects.
The ILO's standards are aimed at ensuring accessible, productive, and
sustainable work worldwide in conditions of freedom, equity, security and dignity. They are
set forth in 189 conventions and treaties, of which eight are classified as fundamental
according to the 1998 Declaration on Fundamental Principles and Rights at Work; together
they protect freedom of association and the effective recognition of the right to collective
bargaining, the elimination of forced or compulsory labour, the abolition of child labour, and
the elimination of discrimination in respect of employment and occupation. The ILO is a
major contributor to international labour law.
Within the UN system the organization has a unique tripartite structure: all standards,
policies, and programmes require discussion and approval from the representatives of
governments, employers, and workers. This framework is maintained in the ILO's three main
bodies: The International Labour Conference, which meets annually to formulate
international labour standards; the Governing Body, which serves as the executive council
and decides the agency's policy and budget; and the International Labour Office, the
permanent secretariat that administers the organization and implements activities. The
secretariat is led by the Director-General, Gilbert Houngbo of Togo, who was elected by the
Governing Body in 2022.
In 1975, the ILO received the Nobel Peace Prize for improving fraternity and peace among
nations, pursuing decent work and justice for workers, and providing technical assistance to
other developing nations.[5] In 2019, the organization convened the Global Commission on
the Future of Work, whose report made ten recommendations for governments to meet the
challenges of the 21st century labour environment; these include a universal labour
guarantee, social protection from birth to old age and an entitlement to lifelong learning. [6]
[7]
 With its focus on international development, it is a member of the United Nations
Development Group, a coalition of UN organizations aimed at helping meet the Sustainable
Development Goals.

4)What is International Marketing? Explain the types of Global marketing strategies.

International marketing is the marketing of products or services outside of your brand’s

domestic audience. Think of it as a type of international trade. By expanding into foreign
territories, brands are able to increase their brand awareness, develop a global audience,
and of course, grow their business.
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The complexity of international marketing comes in the details. While domestic marketing
takes place in the same country, international marketing is anything that happens outside
that nation’s boundaries, with a focus on the nuance of speaking to that international
audience and trying to understand the culture, language (where applicable), and customs
that may not be familiar to your brand.

When expanding to international markets, brands must understand the right ways to reach
audiences in those regions with their messaging. That may come in the form of a language
barrier, or even something as nuanced as a cultural norm that may not be applicable to your
domestic audience. The important part of international marketing is intention and research.
Doing international marketing research up front and developing international marketing
strategies specific to the new audiences your brand is engaging with will make all the
difference when it comes to whether your foray into international marketing is successful.

Global marketing strategies are a part of an overall business plan. It is the process of
adjusting the marketing strategies of a company to better fit the needs of potential
customers in other countries. Entering a new international market can give a company
access to a new customer base, which can increase company revenue. This may also have
several other benefits, such as reduced labour costs, access to additional resources, and the
ability to diversify risks.
Creating a consistent brand that feels familiar to everyone is a priority when expanding to
international markets. When executing your marketing strategies, some aspects of the
business can remain the same, while other aspects can be greatly affected. For example, the
name and logo can likely remain the same, although some businesses choose to change
these aspects as well. Your marketing approach may also change considerably. For example,
the messaging, advertising, and PR approach can change in every new market.
Effective global marketing
If you implement strategies effectively, it can benefit the bottom line of a company in
various ways, including better public perception and increased profit margins. Embracing
new markets can help you discover business potential and allow for new opportunities and
stronger international relationships.
It's important to know your target audience. Understanding who needs your products, and
how to deliver the messaging in a way that grows the company, is the core of global
marketing. If a business chooses not to expand internationally, it can face immediate
competition from international companies that are extending their presence.

5) What Is a Foreign Direct Investment (FDI)?

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Foreign direct investment (FDI) is an ownership stake in a foreign company or project made
by an investor, company, or government from another country.

Generally, the term is used to describe a business decision to acquire a substantial stake in
a foreign business or to buy it outright to expand operations to a new region. The term is
usually not used to describe a stock investment in a foreign company alone. FDI is a key
element in international economic integration because it creates stable and long-lasting
links between economies.

2) Foreign investment.
Foreign investment occurs when foreign companies invest in domestic companies and seek
active participation in their day-to-day operations and key strategic expansion. For example,
if an American company invests in an Indian company, it will be a foreign investment.

Foreign Direct Investment (FDI)

When a company, financial institution, or individual invests in foreign countries and owns

more than 10% of a company’s stake, it is referred to as a foreign direct investment. It gives
the investor controlling power and influence over the companies’ operations and processes.
Another way of gaining foreign direct investments is opening plants, factories, and offices in
another country.
There are two types of foreign direct investment:

1 – Horizontal Investment

When an investor establishes a similar type of business in a foreign country or when two
companies of the same industry (operating in different countries) merge, it is known as
horizontal investment. A company pursues this kind of investment to gain market share and
become a global leader.

2 – Vertical Investment

It refers to when a company of one country acquires or merges with a firm in another
country, irrespective of their business fields. For example, a manufacturing business of one
country acquiring the supplier of raw materials for production of another country. A
company indulges in this type of investment to remove the dependency on others and
achieve economies of scale.
#2 – Foreign Indirect Investment

When a foreign investment enterprise, financial institution, or an individual invests in

another country by buying stocks of companies trading in the foreign stock exchange, it is
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known as foreign indirect investment. However, the said investment should not cross over
10% of the stock in a single company.

Qno-6

6 Write notes on the following:

5. Strategic Planning Process
6. Code of conduct in MNCs

Step 1: Determine where you are

Before you can get started with strategy development and define where you’re going, you
first need to define where you are. To do this, your management committee should collect a
variety of information from additional stakeholders—like employees and customers. In
particular, plan to gather:
 Relevant industry and market data to inform any market opportunities, as well as
any potential upcoming threats in the near future
 Customer insights to understand what your customers want from your company—
like product improvements or additional services
 Employee feedback that needs to be addressed—whether in the product, business
practices, or company culture
 A SWOT analysis to help you assess both current and future potential for the
business (you’ll return to this analysis periodically during the strategic planning
process). 
To fill out each letter in the SWOT acronym, your management committee will answer a
series of questions:
Strengths:
 What does your organization currently do well?
 What separates you from your competitors?
 What are your most valuable internal resources?
 What tangible assets do you have?
 What is your biggest strength? 
Weaknesses:
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 What does your organization do poorly?
 What do you currently lack (whether that’s a product, resource, or process)?
 What do your competitors do better than you?
 What, if any, limitations are holding your organization back?
 What processes or products need improvement? 
Opportunities:
 What opportunities does your organization have?
 How can you leverage your unique company strengths?
 Are there any trends that you can take advantage of?
 How can you capitalize on marketing or press opportunities?
 Is there an emerging need for your product or service? 
Threats:
 What emerging competitors should you keep an eye on?
 Are there any weaknesses that expose your organization to risk?
 Have you or could you experience negative press that could reduce market share?
 Is there a chance of changing customer attitudes towards your company? 

Step 2: Identify your goals and objectives

This is where the magic happens. To develop your strategy, take into account your current
position, which is where you are now. Then, draw inspiration from your original business
documents—these are your final destination. 
To develop your strategy, you’re essentially pulling out your compass and asking, “Where
are we going next?” This can help you figure out exactly which path you need to take. 
During this phase of the planning process, take inspiration from important company
documents to ensure your strategic plan is moving your company in the right direction like:
 Your mission statement, to understand how you can continue moving towards your
organization’s core purpose
 Your vision statement, to clarify how your strategic plan fits into your long-term
vision
 Your company values, to guide you towards what matters most towards your
company
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 Your competitive advantages, to understand what unique benefit you offer to the
market
 Your long-term goals, to track where you want to be in five or 10 years
 Your financial forecast and projection, to understand where you expect your
financials to be in the next three years, what your expected cash flow is, and what
new opportunities you will likely be able to invest in

Step 3: Develop your plan

Now that you understand where you are and where you want to go, it’s time to put pen to
paper. Your plan will take your position and strategy into account to define your
organization-wide plan for the next three to five years. Keep in mind that even though
you’re creating a long-term plan, parts of your strategic plan should be created as the
quarters and years go on.
As you build your strategic plan, you should define:
 Your company priorities for the next three to five years, based on your SWOT
analysis and strategy.
 Yearly objectives for the first year. You don’t need to define your objectives for every
year of the strategic plan. As the years go on, create new yearly objectives that
connect back to your overall strategic goals. 
 Related key results and KPIs for that first year. Some of these should be set by the
management committee, and some should be set by specific teams that are closer to
the work. Make sure your key results and KPIs are measurable and actionable.
 Budget for the next year or few years. This should be based on your financial
forecast as well as your direction. Do you need to spend aggressively to develop your
product? Build your team? Make a dent with marketing? Clarify your most important
initiatives and how you’ll budget for those.
 A high-level project roadmap. A project roadmap is a tool in project
management that helps you visualize the timeline of a complex initiative, but you
can also create a very high-level project roadmap for your strategic plan. Outline
what you expect to be working on in certain quarters or years to make the plan more
actionable and understandable.
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Step 4: Execute your plan

After all that buildup, it’s time to put your plan into action. New strategy execution involves
clear communication across your entire organization to make sure everyone knows their
responsibilities and how to measure the plan’s success. 
Map your processes with key performance indicators, which will gauge the success of your
plan. KPIs will establish which parts of your plan you want achieved in what time frame. 
A few tips to make sure your plan will be executed without a hitch: 
 Align tasks with job descriptions to make sure people are equipped to get their jobs
done
 Communicate clearly to your entire organization throughout the implementation
process 
 Fully commit to your plan 

Step 5: Revise and restructure as needed

At this point, you should have created and implemented your new strategic framework. The
final step of the planning process is to monitor and manage your plan.
1. Share your strategic plan—this isn’t a document to hide away. Make sure your team
(especially senior leadership) has access to it so they can understand how their work
contributes to company priorities and your overall strategic plan. We recommend
sharing your plan in the same tool you use to manage and track work, so you can
more easily connect high-level objectives to daily work. If you don’t already, consider
using a work management tool.
2. Update your plan regularly (quarterly and annually). Make sure you’re using your
strategic plan to inform your shorter-term goals. Your strategic plan also isn’t set in
stone. You’ll likely need to update the plan if your company decides to change
directions or make new investments. As new market opportunities and threats come
up, you’ll likely want to tweak your strategic plan to ensure you’re building your
organization in the best direction possible for the next few years.
Keep in mind that your plan won’t last forever—even if you do update it frequently. A
successful strategic plan evolves with your company’s long-term goals. When you’ve
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achieved most of your strategic goals, or if your strategy has evolved significantly since you
first made your plan, it might be time to create a new one.