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1. Dear students get fully solved assignments
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ASSIGNMENT
Course Code : MS-97
Course Title : International Business
Assignment Code : 97/TMA/SEM-II/2013
Coverage : All Blocks
Note: Attempt all the questions and submit this assignment on or before 31st October, 2013 to
the coordinator of your study centre.
1. What is the concept of comparative cost advantage? Critically examine the concept with
suitable examples.
Answer : The theory of comparative advantage is perhaps the most important concept in
international trade theory. It is also one of the most commonly misunderstood principles. There is a
popular story told amongst economists that once when an economics skeptic asked Paul Samuelson
(a Nobel laureate in economics) to provide a meaningful and non-trivial result from the economics
discipline, Samuelson quickly responded with, "
2. Bring out the recent trends in distribution of FDI flows and reasons for growing
marginalization of the LDCs in their global distribution.
Answer : FDI inflows to India remained sluggish, when global FDI flows to EMEs had recovered in
2010-11, despite sound domestic economic performance ahead of global recovery. The paper
gathers evidence through a panel exercise that actual FDI to India during the year 2010-11 fell short
of its potential level (reflecting underlying macroeconomic parameters) partly on account of
amplification of policy uncertainty as measured through Kauffmann’s Index.
A perusal of India’s FDI policy vis-à-vis other major emerging market economies (EMEs) reveals that
though India’s approach towards foreign
3. Briefly discuss the evolutionary patterns in the organization structure of international
business.
Answer : What is organizational structure and why does it matter? We can think of organizational
structure as the set of formal arrangements that determine how tasks are carried out within an
organization. These arrangements usually take two forms: (1) groups or units, which are formed
around highly interdependent activities, knowledge sets, or strategic points of focus, and (2) linkages
or ties, which connect units in different ways and establish how the organization’s workflow will
progress.
4. Compare the global strategies and the organizational structures of MNEs of any two
countries of your choice.

2. Answer :
The essence of global strategy is an expansive world vision that considers the possibilities of every
location as a market and as a source of competitive advantage, both alone and when integrated with
the rest of the firm. Global enterprises must craft strategies for international expansion,
diversification, and integration to develop, protect, and exploit their resources and capabilities.
Determinations of geographical scope and
5. What are different types of subsidiary roles? Discuss by citing examples that you know.
Answer : A subsidiary, subsidiary company, daughter company, or sister company is a company that
is completely or partly owned and partly or wholly controlled by another company that owns more
than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability
company. In some cases it is a government or state-owned enterprise. The controlling entity is called
its parent company, parent, or holding company.
An operating subsidiary is a business term constantly used within the United States railroad industry.
In the case of a railroad, it refers to a
6. What is partial productivity? How does it differ from total productivity?
Answer : Measurement of partial productivity refers to the measurement solutions which do not
meet the requirements of total productivity measurement, yet, being practicable as indicators of
total productivity. In practice, measurement in production means measures of partial productivity. In
that case, the objects of measurement are components of total productivity, and interpreted
correctly, these components are indicative of productivity development. The term of partial
productivity illustrates well the fact that total
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