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ASSIGNMENT
DRIVE SPRING 2016
PROGRAM MBADS (SEM 3/SEM 5) MBAFLEX/ MBA (SEM3) PGDIB (SEM1)
SUBJECT CODE &
NAME
IB0012 – Management of Multinational Corporations
CREDIT 4
BK ID B 1906
MAX.MARKS 60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately
of 400 words. Each questionis followed byevaluationscheme.
Q.1 What are the benefitsofMNCs to home and host countries?
Answer: Multinational Corporations no doubt, carryout business with the ultimate object of profit
making like any other domestic company. According to ILO report "for some, the multinational
companies are an invaluable dynamic force and instrument for wider distribution of capital, technology
and employment; for others they are monsters which our present institutions, national or international,
cannot adequately control, a law to themselves with no reasonable concept, the public interest or social
policycan accept.MNC's directlyandindirectlyhelpboththe home countryandthe hostcountry.

2. Q.2 What do you understand by global sourcing? What are the different forms of global sourcing?
Elucidate.
Answer: A procurement strategy in which a business seeks to find the most cost efficient location for
manufacturing a product, even if the location is in a foreign country. For example, if a toy manufacturer
finds that manufacturing and delivery costs are lower in a foreign country due to lower wages of foreign
employees, the company might close the domestic factory and use a foreign manufacturer. The internet
has been a good way of Global Sourcing where companies are making their products at a cheaper rate
so that consumershave abetterideaof what theyare
Q.3 What isthe needand importance of global strategy for MNCs?
Answer: ‘Global Strategy’ is a shortened term that covers three areas: global, multinational and
international strategies. Essentially, these three areas refer to those strategies designed to enable an
organisationtoachieve itsobjective of international expansion.
Needofgood organization structure:
Organization structures are related to setting up of internal authority relationships, responsibility for
workperformance,communicationandcontrol methods.
Q.4 How is the performance of employees assessed and appraised in multinational corporations?
Explainin brief.
Answer: The concept of multi-nationality has a number of dimensions. For some the criterion may be
ownership of the organization whereas for others it may be nationalities of the senior management.
Some may decide onthe basisof multi-countryorganizationstructure andoperations.
International performance appraisal (IPA) is a strategic HRM process that enables the multinational
corporation (MNC) to evaluate and improve continuously individual, subsidiary unit, and corporate
performance against clearly defined, preset objectives. Effective IPA creates an incentive system that
can ensure international employeesandoverseas
Q.5 What are the main reasons pertaining to the inadequate attention towards issues relating to
labour relationsin MNCs?
Answer: labor today has managed to generate only a confused, partial and lopsided response to the
multinational corporation. To understand why this is so, it is necessary first to analyze the total impact
of the multinational corporation (MNC) not merely on organized labor but on the total social structure

3. and work force patterns of the affected nations. From such an analysis one can begin to grasp how truly
drasticand dramatic the effectof the MNCshas
Q. 6 Write short notes on:
a. Indian MNCs
Answer: Any company is referred to as a multinational company or corporation (M. N. C.) when that
companymanagesitsoperationorproductionor service deliveryfrommore thana single country.
Such a company is even known as international company or corporation. As defined by I. L. O. or the
International LaborOrganization,
b. FDI and MNC
Answer: Foreign direct investment (FDI) and multinational corporations (MNCs) play a large and growing
role in shaping our world, both economically and politically. Public and academic opinion has long been
mired in an inconclusive debate as to whether these phenomena are beneficial things that should be
encouraged or harmful things that needintensive governmental regulation. The integrating thesis of this
bookis thatthe questionastowhetherthey
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