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IB0-01 June, 2013 International Business Environment

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June, 2013

IB0-01 : International Business Environment


1. Comment on any four of the following statements :

(a) Basic functions, processes and techniques of international business are essentially the same as those involved in domestic business.

(b) The purpose of a trade theory is to explain the pattern of trade between two countries.

(c) The continuous deficits of balance of payments (BOP) is an important indicator in credit rating of countries.

(d) Trade policy is an important instrument to regulate the foreign trade.

(e) Globalisation refers to the absence of borders and barriers to trade between countries.

(f) Intellectual Property Rights have become an important issue in current international business scenario.


Attempt any four questions from this part :

2. How does following environment affect business decision of a firm ?

(a) cultural,

(b) economic and

(c) political.

3. Critically examine the Modern Theory of International Trade.

4. What is balance of payments ? How does disequilibrium occur in balance of payments ? Describe the methods of correcting the disequilibrium.

5. What are Transnational Corporations (TNCs) ? Why do firms become transnational ? Describe main features of TNC.

6. What are the major problems faced by developing countries in promoting their exports ? What are your suggestions to solve these problems ?

7. Explain the structure and functions of WTO. Point out major Pluriliteral trade agreements.

8. Attempt short notes on any two of the following :


(b) Special Drawing Rights (SDRs)

(c) Role of ICC in arbitration and conciliation

(d) The World Wide Web (WWW) 

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