DCM7103 INTERNATIONAL BUSINESS

Description

SESSION	March 2024
PROGRAM	MASTER of commerce
SEMESTER	III
course CODE & NAME	DCM7103 INTERNATIONAL BUSINESS
CREDITS	04
nUMBER OF ASSIGNMENTS & Marks	02 30 MARKS EACH

 

 

Assignment Set – 1^st

Questions

 

1. Discuss the reasons why international trade takes place. Critically examine Ricardo’s comparative cost theory of international trade and differentiate it from Adam Smith’s theory of absolute cost advantage.

Ans:

Reasons for International Trade International trade occurs for several reasons:-

Resource Distribution: Different countries possess varying quantities and qualities of natural resources. This uneven distribution of resources leads countries to trade to obtain resources they lack. 

Specialization and Efficiency: Countries can specialize in producing goods for which they have a comparative

 

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2. Give a detailed note on the elements of International Business Environment in India’s perspective.

Ans: Elements of the International Business Environment from India’s Perspective The international business environment encompasses various elements that influence the operations and strategies of businesses engaged in global trade. These elements can be broadly classified into economic, political, legal, socio-cultural, technological, and environmental

 

 

3. Elaborate the concept of green field investment? Why is it thought to be the best course of action for a developing nation like India? List the factors that influence an investor’s decision to make a foreign investment. Explain with relevant examples.

Ans: Concept of Greenfield Investment

A Greenfield investment refers to a form of foreign direct investment (FDI) where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. This includes building new factories, offices, or other facilities, and can involve the creation of new jobs and the transfer of technology and expertise. 

Benefits of Greenfield Investment for a Developing Nation like India Greenfield investments are

 

Assignment Set – 2^nd

Questions

 

4. Give a detailed note on the role of different international organizations working to facilitate international trade.

Ans: Role of International Organizations in Facilitating International Trade International organizations play a crucial role in promoting and facilitating global trade by establishing rules, providing a platform for negotiations, resolving disputes, and fostering economic cooperation. These organizations work to create a stable and predictable trading environment, reduce barriers to trade, and support

 

5. Discuss how domestic financial management differs from international financial management. Describe the various types of foreign currency derivatives.

Ans:

Differences between Domestic Financial Management and International Financial:-

Management Domestic financial management and international financial management both focus on managing a firm’s finances, but they differ in scope, complexity, and the challenges they face.

Here are the key differences: 

Exchange

 

6. Discuss the differences between IAS and DAS. Elaborate the factors that lead to harmonization of the accounting system.

Ans:

Differences between IAS (International Accounting Standards) and DAS (Domestic Accounting Standards) International Accounting Standards (IAS) and Domestic Accounting Standards (DAS) differ in various aspects, mainly due to their scope, objectives, and the regulatory environment in which they operate.

Here are the