Question Bank

Unit no. 1:

Level A. Easy Questions (2 marks each)

S. Questions
CO*
No.
Q1 What is global competitiveness? CO1

Q2 State any two forms of international business. CO1

Q3 What is franchising? CO1

Q4 Give the meaning of joint ventures. CO1

Q5 What do you mean by Entrepot? CO1

Q6 What are the two features of Liberalization? CO1

Q7 LPG stands for……..? CO1

Q8 List three reasons a business may expand its international markets? CO1

Q9 What is Polycentric approach in International Business? CO1

Q10 How will you differentiate between Licensing and Franchising? CO1

Q11 Name the four approaches of International Business. CO1

Q12 Why Apple is considered as Global firm not an International firm? CO1

Q13 What is cross border business? CO1

Q14 How will you differentiate between trade surplus and trade deficit? CO1

Q15 Give the meaning of Trade Barriers. CO1

Q16 List any two differences between Tariff and Non tariff Barriers. CO1

Q17 Name ant three problems in Globalization of Indian firms. CO1

Q18 Wholly owned foreign operations offer the greatest product line flexibility, whereas CO1
exporting offers the least product line flexibility.
(a) True (b) False
Q19 What factors have an impact on the success of an organization trying to establish its CO1
business in a foreign country?
Q20 What is Contract Manufacturing? CO1
 Level B. Intermediate Questions (5 marks each)
Q21 What are the main drivers that induce the occurrence of International Business?/ Which CO1
factors induces the business firms to go globally?
Q22 “Global trade is more difficult and risky than domestic trade”. Differentiate. CO1

Q23 Differentiate between polycentric and ethnocentric approach of international business. CO1

Q24 What are the features of international business? CO1

Q25 Discuss the importance of mode of entries in international business. CO1

Q26 What are the restraints to international business? CO1

Q27 “Culture is dynamic, Businesses have to adjust”. Comment with examples. CO1

Q28 You are a manufacturer of herbal skin care and hair care products based in Bangalore. You intend to sell these products all over the European Union. CO1
Given the policies of the EU and considering the cultural aspects discuss in detail the procedure and customization you would require to do.

Q29 Discuss your views on the effect of COVID 19 on International business. CO1

Q30 What are the different facts of international business environment? CO1

Level C. Difficult Questions (10 marks each)

Q31 Rakesh began a gloves manufacturing unit in Bengaluru ten years ago. He sells surgical gloves to several medical institutions in South India. Though the CO1
business is doing well Rakesh has started to feel that he should expand the business by attracting more customers. Rakesh has an opportunity to sell the

gloves to Sri Lanka and Mauritius. He has also been contacted by a party in Gurgaon for sales. Based on his production capacity, Rakesh can either take

up the North Indian market, explain why. If you advise to go for the foreign market, then advise how he should go about it, the documents needed, the

procedure and so on.

Q32 CO1
Imagine that you are the Vice President; Marketing is a domestic firm which is not very keen to go International despite good business opportunities overseas. Write a

detailed note in the President of the Company explaining the advantages to the company if it enters international business and markets.

Q33 Discuss giving reasons, some successful international businesses. Why do some International businesses fail? CO1

Q34 “Firms need global orientation even to survive the domestic market”. Justify the statement with some suitable examples. CO1
Q35 Gillette Targets Emerging Markets’ CO1

As it entered the twenty-first century, Gillette faced a difficult choice. Should it continue targeting emerging markets or not? Its strategy to move

aggressively into markets in the developing world and the former Soviet bloc had been hailed as a success only a few years before. Recent poor

earnings, however, had management considering whether this choice had been a wise one. The Boston-based firm was founded in 1895 and is still best

known for its original products, razors and razor blades. By the end of the twentieth cent~ry, Gillette had grown into a global corporation that marketed.

its products in 200 countries and employed 44,000 people worldwide. About 1.2 billion people use Gillette products every day. Its sales are about

equally distributed among the United States (30 per cent), Western Europe (35 per cent), and the rest of the world (35 per cent).

As markets matured in developing countries, Gillette sought growth through product diversification, moving into lines such as home permanents,

disposable lighters, ballpoint pens, and batteries. In the mid-1990s, Gillette targeted several key emerging markets for growth. Among them were

Russia, China, India and Poland. Russia was already a success story. Gillette had formed a Russian joint venture in St.Petersburg and within 3 years

Russia had become Gillette’s third-largest blade market. Gillette’s move into the Czech Republic had prospered as well and in 1995 Gillette bought

Astra, a 10caI; privately-owned razor blade company. Astra gave Gillette expanded brand presence in the Czech market. Astra’s relatively strong

position in export markets ~n East Europe, Africa and Southeast Asia proved a boon to Gillette in those markets as well. Jus.t as in other markets in the

developing world, 70 per cent of East European blade .consumers used the older, lower-tech double-edge blade. In more developed markets, consumers

appreciated product innovation and the shaving market had moved to more high-tech systems such as Gillettes Sensor.)

Then disaster struck. A financial crisis that began in Thailand quickly spread across Asia. Many wary investors responded by pulling money out of other

emerging markets as well as depressing economies across the globe. Bad economies meant slower sales for Gillette, especially in Asia, Russia and Latin

America. In Russia, wholesalers could not afford to buy Gillette products. Consequently, these products disappeared from retail stores and Gillette’s

Russian sales plummeted 80 per cent in a single month. Gillette found it could not meet its projected annual profit growth of 15-20 per cent. The price of

Gillette shares tumbled 36 per cent in 6 months. To save money, Gillette planned to close 14 factories and layoff 10 per cent of its workforce. Despite its

recent bad experience in developing countries and in the former Soviet bloc, Gillette was still moving ahead with plant expansion plans in Russia and

Argentina that would total $64 million. Some even suggested that this was a good time to expand in the emerging markets by buying up smaller

competitors that had been hurt even worse by the crises. Meanwhile, back in the developed world, another large global consumer products firm,

Unilever, announced that it would be entering the razor market.

Discussion Questions

1. Why do companies such as Gillette target emerging markets? Do you agree with this strategy?
2. What are the dangers to Gillette of targeting emerging markets?
3. Why would local, privately-owned companies like Astra want to sell out to companies like Gillette Why are such companies attrac -
tive acquisitions to multinational firms?
4. What global strategy would you suggest for a company such as Gillette? Explain your choice.

Q36 Examine the important arguments for protection vs. liberalization of global business environment. CO1

Question Bank
 Unit no. 2:

Level A. Easy Questions (2 marks each)

S. No. Questions CO*
Q1 The trade theory that says a country should export more than it imports is known CO2
as ________.
(a) Mercantilism (b) Absolute Advantage (c) Comparative Advantage
(d) none of these
Q2 Under mercantilism, governments sought to influence trade by ________. CO2
(a) establishing bilateral trading agreements with other countries
(b) limiting exports
(c) limiting imports and subsidizing exports
(d) encouraging the development of manufacturing in their colonies
Q3 Which theory is based on Opportunity Cost _______? CO2

(a) Mercantilism (b) Absolute Advantage (c) Comparative Advantage

(d) none of these

Q5 Who derived the theory of International Product Life Cycle Theory? CO2

Q6 The theory of absolute advantage was propounded by __________? CO2

Q7 In which theory of international business “Capital Intensive Goods” and “ Labour CO2
Intensive Goods” are to be considered as only factors of production?
Q8 Differentiate between rapid penetration and slow penetration. CO2

Q9 According to the factor proportions model, countries have comparative CO2

advantage in the good that
(a) Employs a relatively large amount of their scarce factor.
(b) Employs a relatively large amount of the factor that they have relatively
more of than other countries.
(c) Uses intensively their scarce factor.
(d) Requires proportionately more of every factor than the goods they
import.
Q10 Who developed the theory of national competitive advantage in international business? CO2

Q11 List any two features of Absolute Advantage theory. CO2

Q12 Which theory of international business helps in explaining how forces in the CO2
competitive environment shape strategies and affect performance?
Q13 What do you mean by bargaining power of suppliers? CO2
Q14 When a firm uses the same marketing strategies abroad as that used at home, it CO1/
probably is_______. CO2
(a) Ethnocentricity
(b) Polycentricism
(c) Geocentricism
(d) None of these
Q15 What is the basis of international trade? Why do nations trade? CO2

Q16 What are the reasons for internationalization? CO1/

CO2
Q17 What are the four stages of Product Life Cycle? CO2

Q18 Name the five components of Porter’s Model. CO2

Q19 “China and India are home to cheap, large pools of labor. Hence these countries CO2
have become the optimal locations for labor-intensive industries like textiles and
garments”. Which theory of international business supports this statement?
Q20 Write a short note on “Absolute Advantage” theory. CO2

Level B. Intermediate Questions (5 marks each)

Q21 Briefly explain any two theories of international trade and contemplate shortly on their relevance in modern day trade. CO2

Q22 Explain Raymond Vernon’s Product Life Cycle theory in International Trade. CO2

Q23 What are the various forms of protection through which Government protects the domestic firms from International threats? CO2

Q24 What are the barriers to international trade? List and explain all the types of barriers to international trade CO2/
CO1
Q25 Explain the concept of country risk analysis. Comment on socio-economic risk and its management. CO2

Q26 Why does International Business fail? Discuss with an example of your choice. CO2

Q27 Discuss the theories of International Trade and Investment. CO2

Q28 Explain “comparative advantage” with the support of an example. CO2

Q29 Explain the theory of "Comparative cost advantage" How do firms in two different countries benefit from international trade in terms of this CO1
theory? Explain with examples.

Q30 Discuss the various approaches or Orientation of International Business. CO1/

CO2
Level C. Difficult Questions (10 marks each)
Q31 “Comparative Advantage' theory is a better version of 'Absolute Advantage' CO2
theory. Do you agree with the above statement? Explain your instance
Q32 Identify any industry of your choice and illustrate the possibility of new entrants entering in that industry and why? Do you see any barriers CO2
being raised by the existing players?
Q33 Explain briefly the five forces framework and use it for analyzing competitive CO2
environment of any industry of your choice.
Q34 Discuss the factor endowment theory in detail with the help of suitable examples. CO2
Q35 How the natures of markets determine the competitive rivalry between firms? Explain with suitable examples. CO2

Q36 You are a manufacturer of herbal skin care and hair care products based in Pune. CO1/
You intend to sell these products all over the European Union. Given the policies CO2
of the EU and considering the cultural aspects discuss in detail the procedure and
customization you would like to do.

Question Bank
Unit no:- 3

Level A. Easy Questions (2 marks each)

S. No. Questions CO*
Q1 Define micro environment? CO3

Q2 Define macro environment? CO3

Q3 Liberalization means CO3

A. Free determination of interest rates

B. Liberating the industry, trade and economy from unwanted restrictions

C. Opening up of economy to the world by attaining international competitiveness

D. Reducing number of reserved industries from 17 to 8

Q5 Which among the following is not opened for private sector participation CO3
A. Railways

B. Telecommunication sector

C. Education sector

D. Power sector
Q6 Globalisation is the term used to describe process of removal of restriction on CO3
A. Investment

B. Foreign Trade

C. Both (A) and (B)

D. None of the above

Q7 Which one is not the main objective of Fiscal Policy in India? CO3
A. To promote employment opportunities

B. To minimize the inequalities of income and wealth

C. To promote price stability

D. To increase liquidity in economy

Q8 Define political factor? CO3

Q9 Define economical factor? CO3

Q10 Define social factor? CO3

Q11 Define economical factor? CO3

Q12 Define consumer protection law? CO3

Q13 What is labor law? CO3

Q14 Define customs and beliefs? CO3

Q15 Liberalization means______? CO3

Q16 Who are the suppliers? CO3

Q17 Who are the competitors? CO3

Q18 Define demographic environment? CO3

Q19 Why labor law is required for the factories or establishments? CO3

Q20 What is discrimination? CO3

Level B. Intermediate Questions (5 marks each)

Q21 What are the example of political risk and their impact on international business? CO3

Q22 Differentiate between environmental law and environmental issues? CO3

Q23 Define environmental factor with suitable examples? CO3

Q24 How MNC’s manage political Risks? CO3

Q25 What are the areas of of concern for an MNC with regard to its legal environment? CO3

Q26 How are international trade disputes resolved? CO3

Q27 Which principles of International Law are more important for International business? Why? CO3

Q28 Describe the different legal system? CO3

Q29 Describe the different levels of culture? CO3

Q30 Critically evaluate the concept of culture? CO3

Level C. Difficult Questions (10 marks each)

Q31 Explain the significance of culture in international business decisions? CO3

Q32 You are scheduled to visit Japan, Saudi Arabia, Sweden, and the US on a business trip. Based on the cross-culture classification learnt in this CO3
chapter, prepare a checklist of cultural challenges you are going to face. Discuss your observations?

Q33 Explain the significance of political environment in international business with CO3
suitable example?
Q34 Describe various forms of government system on the basis of economic system CO3
and its impact on business decisions with suitable examples?
Q35 Discuss the legal factor of the country with suitable illustrations? CO3

Q36 What are the major implications of legal factor or legal system on international CO3
business decisions?

Unit no. 4

Level A. Easy Questions (2 marks each)

S. No. Questions CO*
Q1 Define the term of exchange rate? CO4
Q2 Define the meaning of international finance? CO4

Q3 Difference between flexible exchange rate and fixed exchange rate? CO4

Q5 Any two role of world trade organization? CO4

Q6 Define the term of letter of credit? CO4

Q7 Define the term of Dollarization? CO4

Q8 Define the term of global E-business? CO4

Q9 Who are involved in BOP? CO4

Q10 What is integration ? CO4

Q11 Any two example of Merger and Acquisition in India? CO4

Q12 Any two example of franchising company in India? CO4

Q13 Name of two major exporting company in India? CO4

Q14 Why any country need to do more export in comparison to import? CO4

Q15 Which type of products does Tata Motors export? CO4

Q16 Differentiate between the FERA and FEMA ? CO4

Q17 What is the present exchange rate system in India? CO4

Q18 Define the term tariff and non- tariff barriers? CO4

Q19 Define the term in FDI: CO4

a) Automatic route
b) Government route
Q20 Two majorly imported items in India? CO4

Level B. Intermediate Questions (5 marks each)

Q21 How MNC’s promotes the competition in home country and discuss its negative effects on Small scale industries? CO4

Q22 Describe the development of the International monetary system? CO4

Q23 What is Bretton wood system of exchange rate? CO4

Q24 What are the objectives of international finance? CO4

Q25 Discuss the two stages of evolution of the international monetary system . CO4

a) Bimetallism (before 1870)

b) Gold standard (1875-1914)

 Q26 Illustrate the system of exchanging currencies in details? CO4

Q27 How MNC’s create its Legal Monopoly in Home country. Discuss? CO4

Q28 What is political risk assessment? How do MNC’s manage political Risks? CO4

Q29 Define the term of: CO4

a) Wholly subsidiary

b) Merger and acquisition

c) Joint venture

Q30 Explain objectives and functions of International Monetary Find (IMF). CO4

Level C. Difficult Questions (10 marks each)

Q31 What are the major issues in settlement of international trade disputes ? CO4
Discuss the
role of International Chambers of Commerce (ICC) in this regard.
Q32 What is the meaning of FDI. What are the various types of FDI? CO4

Q33 Differentiate between balance of payment and balance of trade? CO4

Q34 The first merit of MNC’S is job creation but on the other side demerit of CO4
MNC’s is import the employment. Explain in Detail?
Q35 Discuss the methods of international payments? CO4

Q36 Evaluate the advantages and disadvantages of FDI. Also explain the role of CO4
FDI in the

economic development of the host country.

Unit no. 5

Level A. Easy Questions (2 marks each)

S. Questions
CO*
No.
Q1 Define the term of strategies? CO5

Q2 Define marketing? CO5

Q3 Who is the Co-founder of sugar cosmetics? CO5

Q4 Who Introduced the Cadbury dairy milk? CO5

Q5 What was the tagline of Nestle? CO5

Q6 Global Advertising vs country-specific advertising? CO5

Q7 Which international monetary body support in Russia Ukraine war? CO5

Q8 Any 2 CSR activity of KFC? CO5

Q9 What products does Maybelline offer? CO5

Q10 Is Tata Group an International Company? CO5

Q11 Tagline of KFC AND FULLFORM? CO5

Q12 How does Maybelline use influencer-driven content to promote a product? CO5

Q13 Define Global Marketing? CO5

Q14 Define the term :- CO5

a) Political environment
b) Competitive environment

Q15 Define the global communication strategies? CO5

Q16 Define global distribution strategies? CO5

Q17 Define the term of Indirect Exporting? CO5

Q18 Define the term of joint venturing? CO5

Q19 What is promotion? CO5

Q20 Did Coca-Cola make a blunder? CO5

Level B. Intermediate Questions (5 marks each)

Q21 Describe various commercial documents required for shipment of export goods. CO5

Q22 Describe the challenges in cross-cultural Marketing? CO5

Q23 What are the factors creating international marketing complexity? CO5

Q24 Which element in Marketing Mix is most flexible. Discuss? CO5

Q25 Why is Price different from other elements in the marketing? CO5

Q26 Discuss the marketing strategies of Cadbury Dairy Milk Globally? CO5

Q27 Discuss any 5 challenges of International business? CO5

Q28 Discuss the concept of PESTEL Analysis? CO5

Q29 Global Marketing. Discuss its process? CO5

Q30 Does McDonald's have a product mix?What is McDonald's Marketing Mix Strategy? CO5

Level C. Difficult Questions (10 marks each)

Q31 Discuss various objectives of International Marketing along with challenges involved ‘International Marketing’. CO5

Q32 ‘Analysis Of Global Economic Environment is quite essential to International Marketing in today’s scenario’ Critically comment on the statement. CO5

Q33 Suggest a suitable ‘Foreign Market Entry Strategy for following. Justify your answer CO5

a. An Indian steel company planning to get into Overseas- markets.

b. A ready-made garment small-scale Indian Manufacturer willing to enter US market

c. An Internationally reputed Fast Food Chain – Quick Service Restaurant (QSR)’ willing to enter Indian Markets.

Q34 Elaborate various ‘Product Strategies’ for International Markets. CO5

Q35 Discuss various factors affecting ‘International Pricing’. CO5

Q36 Why marketing mix elements are dynamic and flexible. Discuss? CO5