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| SESSION | FEB-MARCH 2025 |
| PROGRAM | MASTER OF BUSINESS ADMINISTRATION (MBA) |
| SEMESTER | IV |
| COURSE CODE & NAME | DIBM403 INTERNATION BUSINESS ENVIRONMENT AND INTERNATIONAL LAW |
Assignment Set – 1
Q1. i. Multinational Corporations (MNCs) operate in diverse international markets using different managerial orientations based on their global strategy and approach to foreign operations. Identify and explain the five international business management orientations – Ethnocentric, Polycentric, Regiocentric, Geocentric, and Ethical and Sustainable Orientation. For each orientation, select one real-world MNC that represents that approach and explain how and why the company follows it.
- Discuss how an MNC should analyze the international business environment before entering India.
Ans 1.
- Five International Business Management Orientations
Multinational Corporations (MNCs) adopt various managerial orientations to manage operations across international markets. These orientations reflect how a company views and manages its subsidiaries, workforce, and strategies across borders.
Ethnocentric Orientation
In this approach, the home
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Q2. i. Identify at least two key Indian economic laws that a MNC must comply with and explain their implications for business operations.
- Describe how international economic institutions and agreements influence India’s trade and investment climate.
- Key Indian Economic Laws MNCs Must Comply With
MNCs operating in India must adhere to multiple economic laws that regulate foreign investment, trade, and business conduct. Two significant laws are:
- Foreign Exchange Management Act (FEMA), 1999
FEMA governs all foreign exchange transactions and aims to facilitate external trade while ensuring orderly development of the forex market. MNCs must comply with FEMA regulations related to capital inflows, repatriation of profits, and cross-border mergers. Violations can lead to
Q3. i. Discuss the role of Foreign Direct Investment (FDI) and Foreign Institutional Investors (FII) in the economic growth of country (take any one country of your choice).
ii.A Japanese electronics company and an American distributor failed to reach an agreement due to differences in their negotiation approaches. Analyze how understanding the stages of the negotiation process could have helped avoid this breakdown.
iii. A French wine company appoints a local agent in India to expand its market. Explain the legal duties of the agent and the potential legal risks if the agent misrepresents the product. How should these risks be addressed in a legal agreement? 3+3+4
Ans 3.
- Role of FDI and FII in Economic Growth (India)
In India, both Foreign Direct Investment (FDI) and Foreign Institutional Investors (FII) play vital roles in economic development. FDI involves long-term investment by a foreign entity in India’s business sectors, often in the form of setting up factories, acquiring equity, or starting joint ventures. It
Assignment Set – 2
Q4. i. Ravi promises to sell his bike to Rohan for ₹50,000. Rohan agrees, but later Ravi changes his mind without any reason. Based on the law of contract, explain whether a valid contract existed between them. Which elements would you check to determine this?
- XYZ Ltd. is undergoing financial losses and is planning to shut down operations. Briefly explain the winding-up process of a company under Indian corporate law. What role does the tribunal or liquidator play in this process?
Ans 4.
- Validity of Contract Between Ravi and Rohan
Under the Indian Contract Act, 1872, a contract is a legally enforceable agreement formed by free consent of parties competent to contract, for a lawful consideration and lawful object. In the case between Ravi and Rohan, the primary question is whether a valid contract was established between them.
Ravi made an offer to sell his bike to Rohan for ₹50,000, which Rohan accepted. This situation involves the essential components of a valid contract: offer and acceptance, consideration, and mutual consen
Q5.i. A shipment of electronics is delayed at an Indian port due to missing export documentation. Discuss the importance of accurate documentation in international trade and name any three critical documents required for successful customs clearance.
- A trader agrees to sell 500 bags of rice to a retailer but only delivers 300 bags. The retailer refuses to pay until full delivery is made. Based on the performance of contract of sale, discuss the rights of the buyer and obligations of the seller in this situation.
Ans 5.
- Importance of Accurate Documentation in International Trade
In international trade, accurate documentation is crucial for smooth execution of transactions, compliance with legal requirements, and clearance of goods at ports. Missing or incorrect documents can lead to delays, penalties, confiscation, or rejection of shipments, causing both financial and reputational
Q6. i. Explain any three essential documents used in international trade transactions.
- What is the meaning of sharing of tax revenues in the context of cross-border transactions?
iii. Describe the role of the WTO dispute settlement machinery in resolving trade conflicts. 3+2+5
Ans 6.
- Three Essential Documents in International Trade
- Commercial Invoice: This is a primary document prepared by the exporter detailing the transaction, including product description, quantity, price, payment terms, and exporter/importer details. It is used for customs clearance and tax calculations.
- Certificate of Origin: This document certifies the country where the goods were produced. It is


