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Summer 2013
Master of Business Administration- MBA Semester 3
IB0012 - Management of Multinational Corporations -4 Credits
(Book ID: B1200)
Assignment- 60 marks
Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400
words. Each question is followed by evaluation scheme.
Q1. Why is environmental analysis important for strategic decisions? What does macro environment comprise
of?
(environmental analysis- 4 marks, macro environment- 6 marks) 10 marks
Answer : Importance of Environmental analysis :
An environmental analysis in strategic management plays a crucial role in businesses by pinpointing current and
potential opportunities or threats outside the company in its external environment. The external environment
includes political, environmental, technological and sociological events or trends that can affect the business
directly or indirectly. An environmental analysis is generally conducted as part of an analysis of strengths,
weaknesses, opportunities, and threats (SWOT) when a strategic plan is being developed
Q2. Discuss the important features of Heckscher-Ohlin theory and International product life cycle theory.
(Heckscher-Ohlin theory - 5 marks, International PLC theory-5 marks ) 10 marks
Answer : Important features of Heckscher-Ohlin theory:
The Heckscher–Ohlin model (H–O model) is a general equilibrium mathematical model of international trade,
developed by Eli Heckscher and Bertil Ohlin at the Stockholm School of Economics. It builds on David Ricardo's
theory of comparative advantage by predicting patterns of commerce and production based on the factor
endowments of a trading region.
Q3. Discuss the challenges and opportunities of International management.
( challenges and opportunities- 10 marks) 10 marks

2. Answer : Challenges of International management:
International management consists of building an effective strategy, structuring an appropriate organizational
design and managing people in a cross-cultural environment. Throughout these activities, companies must handle
bureaucratic, technical, political, economic, linguistic, behavioral and cultural differences. Even if a small business
does not pursue any international activities, a couple of these international challenges may show up while
competing against or cooperating with a foreign company in its own domestic market or simply operating in a
local community.
Q4. Compare the management styles and practices in China and India.
( China- 5 marks, India- 5 marks) 10 marks
Answer : Management styles and practices in China:
In Confucian philosophy, all relationships are deemed to be unequal. Ethical behaviour demands that these
inequalities are respected. Thus, the older person should automatically receive respect from the younger, the
senior from the subordinate. This Confucian approach should be seen as the cornerstone of all management
thinking and issues such as empowerment and open access to all information are viewed by the Chinese as, at
best, bizarre Western notions.
Q5. List the factors on which the location of an MNC depends. What are the four options available to a firm to
formulate the strategy?
( listing- 3 marks, 4 options- 7 marks) 10 marks
Answer : Factors on which the location of an MNC depends:
In general, factors that affect the location decisions can be divided into Country decision, region/community
decisions and site decision. Due to globalization, Canon had becoming multinational company which decides the
decision to set its company based on:-
Political View
Economical Factor
Cultural
Q6. Discuss the role of joint ventures as a mode of entry in foreign market. Also explain the types, advantages
and disadvantages of joint ventures.
( role- 2 marks, types- 2 marks, advantages- 3 marks, disadvantages- 3 marks) 10 marks
Answer : Role of joint venture :
Foreign joint ventures have much in common with licensing. The major difference is that in joint ventures, the
international firm has an equity position and a management voice in the foreign firm. A partnership between host-
and home-country firms is formed, usually resulting in the creation of a third firm. This type of agreement gives
the international firm better control over operations and also access to local market knowledge.
Dear students get fully solved assignments

3. Send your semester & Specialization name to our mail id
-> help.mbaassignments@gmail.com
or
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