University Of Pune Question Paper
M.M.S. / M.B.S. (Semester – I) Examination, 2012
101 : INTERNATIONAL BUSINESS MANAGEMENT
(2008 Pattern)
Time : 3 Hours Max. Marks : 70
Instructions :1) Answer any two questions from Que.No. 1 to 4.
2) Que. No. 5 and 6 are compulsory.
1. Explain and compare David Ricardo’s theory of comparative advantage with
Adam Smith’s theory of competitive advantage. 15
2. Explain the concept of country risk analysis. What is political and economic
environment ? 15
3. Explain various international market entry strategies, along with their advantages
and disadvantages. 15
4. Explain the concept of globalisation. What is the impact of globalisation on Indian
industry in general and I.T. industry in particular. 15
5. Write short notes (any four) : 20
a) SEZ
b) Balance of Payment
c) TRIP and TRIM
d) Tariff and non-tariff barriers
e) South East Asian currency crisis
f) IMF and World Bank.
6. Case study : 20
The European Union is the most significant market in the world for bananas,
consuming over 37 percent of the world’s output. That is why a decision by the
EU Farm Council attracted attention among both banana-growing nations and
those consuming them. The decision was made to favor imports coming from EU
countries’ (mainly British, French and Spanish) former colonies in Africa, Caribbean
and the Pacific under a preferential trading agreement called the Lomé Convention.
Other producing countries would be subject to a quota of 2.2 million tons with a
20 percent tariff. All imports beyond that amount would be subject to a 170
percent tariff.
The EU’s stated reason for the decision was to protect the former colonies in
what, for some of them, is the main source of revenue. For example, in the case
of St. Lucia, more than 60 percent of its export revenue is from bananas. One of
the other (hidden agenda) reasons was to attempt to curb U.S. influence in the
banana trade. The United States is home to three of the major companies in the
business: Chiquita, Del Monte and Dole.
The Caribbean nations have favored the decision as a consideration of smaller
nations’ right to exist with a decent standard of living, self-determination, and
independence. Their main concern is that free trade would soon put their growers
out of business due to the inherent inefficiencies of smaller farms. In Latin America,
the view was quite the opposite. For countries such as Equador, Costa Rica,
Colombia, and Honduras, the restrictions resulted in losses of $1 billion and
1,70,000 jobs. The unit-costs of production in Latin America are typically 2.5
times less than in the Caribbean.
Initially, the United States acted as an interested observer given that it is not a
banana-growing nation (except for small amounts grown in Hawaii). However, at
the request of Chiquita, the United States filed a complaint with the World Trade
Organization. The main driver was the dangerous precedent of inaction if the EU
banana regime went unchallenged. Unless deterred, the EU could possibly enjoy
similar measures in other sectors of agriculture.
Questions :
1) Is the involvement of the United States in the “banana wars” justified ?
2) Are there any other ways the EU countries could support their former colonies
apart from erecting trade barriers ?
–––––––––––––––––
B
M.M.S. / M.B.S. (Semester – I) Examination, 2012
101 : INTERNATIONAL BUSINESS MANAGEMENT
(2008 Pattern)
Time : 3 Hours Max. Marks : 70
Instructions :1) Answer any two questions from Que.No. 1 to 4.
2) Que. No. 5 and 6 are compulsory.
1. Explain and compare David Ricardo’s theory of comparative advantage with
Adam Smith’s theory of competitive advantage. 15
2. Explain the concept of country risk analysis. What is political and economic
environment ? 15
3. Explain various international market entry strategies, along with their advantages
and disadvantages. 15
4. Explain the concept of globalisation. What is the impact of globalisation on Indian
industry in general and I.T. industry in particular. 15
5. Write short notes (any four) : 20
a) SEZ
b) Balance of Payment
c) TRIP and TRIM
d) Tariff and non-tariff barriers
e) South East Asian currency crisis
f) IMF and World Bank.
6. Case study : 20
The European Union is the most significant market in the world for bananas,
consuming over 37 percent of the world’s output. That is why a decision by the
EU Farm Council attracted attention among both banana-growing nations and
those consuming them. The decision was made to favor imports coming from EU
countries’ (mainly British, French and Spanish) former colonies in Africa, Caribbean
and the Pacific under a preferential trading agreement called the Lomé Convention.
Other producing countries would be subject to a quota of 2.2 million tons with a
20 percent tariff. All imports beyond that amount would be subject to a 170
percent tariff.
The EU’s stated reason for the decision was to protect the former colonies in
what, for some of them, is the main source of revenue. For example, in the case
of St. Lucia, more than 60 percent of its export revenue is from bananas. One of
the other (hidden agenda) reasons was to attempt to curb U.S. influence in the
banana trade. The United States is home to three of the major companies in the
business: Chiquita, Del Monte and Dole.
The Caribbean nations have favored the decision as a consideration of smaller
nations’ right to exist with a decent standard of living, self-determination, and
independence. Their main concern is that free trade would soon put their growers
out of business due to the inherent inefficiencies of smaller farms. In Latin America,
the view was quite the opposite. For countries such as Equador, Costa Rica,
Colombia, and Honduras, the restrictions resulted in losses of $1 billion and
1,70,000 jobs. The unit-costs of production in Latin America are typically 2.5
times less than in the Caribbean.
Initially, the United States acted as an interested observer given that it is not a
banana-growing nation (except for small amounts grown in Hawaii). However, at
the request of Chiquita, the United States filed a complaint with the World Trade
Organization. The main driver was the dangerous precedent of inaction if the EU
banana regime went unchallenged. Unless deterred, the EU could possibly enjoy
similar measures in other sectors of agriculture.
Questions :
1) Is the involvement of the United States in the “banana wars” justified ?
2) Are there any other ways the EU countries could support their former colonies
apart from erecting trade barriers ?
–––––––––––––––––
B
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