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1*Define MNC? What are the Key Features of MNC? (VERY IMP*)

Definition: An enterpriseoperating in several countriesbut managed from one (home) country.

Generally, any company or group that derives a quarterofitsrevenuefromoperationsoutside ofits home country is considered a multinationalcorporation.

Features/ Characteristics of MNCs: (any 4)

1. MNCs have managerial headquarters in home countries, while they carry out operations in a

number of other (host) countries.

2. A large part of capital assets of the parent company is owned by the citisens of the company'shome country.

3. The absolute majority of the members of the Board of Directors are citisens of the home

country.

4. Decisions on new investment and the local objectives are taken by the parent company.

5. MNCs are predominantly large-sized and exercise a great degree of economic dominance.

6. MNCs control production activity with large foreign direct investment in more than onedeveloped and developing countries.

7. MNCs are oligopolistic in character. It is sustained by modern technologies, management skill,

product differentiation and enormous advertising.

8. MNCs are not just participants in export trade without foreign investments.

2*What are the Positive (Advantages) of MNC?

Advantages of MNC's for the host country:

MNC's help the host country in the following ways

1. The investment level, employment level, and income level of the host country increases due tothe operation of MNC's.

2. The industries of host country get latest technology from foreign countries through MNC's.

3. The host country's business also gets management expertise from MNC's.

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4. The domestic traders and market intermediaries of the host country gets increased business

from the operation of MNC's.

5. MNC's break protectionalism, curb local monopolies, create competition among domesticcompanies and thus enhance their competitiveness.

6. Domestic industries can make use of R and D outcomes of MNC's.

7. The host country can reduce imports and increase exports due to goods produced by MNC's in

the host country. This helps to improve balance of payment.

8. Level of industrial and economic development increases due to the growth of MNC's in thehost country.

Advantages of MNC's for the home country

MNC's home country has the following advantages.

1. MNC's create opportunities for marketing the products produced in the home country

throughout the world.

2. They create employment opportunities to the people of home country both at home andabroad.

3. It gives a boost to the industrial activities of home country.

4. MNC's help to maintain favourable balance of payment of the home country in the long run.

5. Home country can also get the benefit of foreign culture brought by MNC's.

3*Mention any 3 negatives (Disadvantages) of MNC? (VERY IMP*)

Disadvantages of MNC's for the host country

1. MNC's may transfer technology which has become outdated in the home country.

2. As MNC's do not operate within the national autonomy, they may pose a threat to theeconomic and political sovereignty of host countries.

3. MNC's may kill the domestic industry by monpolising the host country's market.

4. In order to make profit, MNC's may use natural resources of the home countryindiscriminately and cause depletion of the resources.

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5. A large sums of money flows to foreign countries in terms of payments towards profits,

dividends and royalty.

Disadvantages of MNC's for the home country

1. MNC's transfer the capital from the home country to various host countries causing

unfavourable balance of payment.

2. MNC's may not create employment opportunities to the people of home country if it adopts

geocentric approach.

3. As investments in foreign countries is more profitable, MNC's may neglect the home countriesindustrial and economic development.

4*Name any 3 MNCs in India, Japan, USA, South Korea? (VERY IMP*)

India: Infosys, TATA MOTORS, VIDEOCON, RANBAXY, ASIAN PAINTS

Japan: Toyota, Honda, Nissan, Mazda, Suzuki

USA: Apple Inc, Microsoft, Johnson & Johnson, Pepsico, Dell

South Korea: FILA, Hyundai Group, LG Group, Samsung Group

5*Full Form of WTO, NAFTA, ASEAN, SAARC, UAO ? (VERY IMP*)

WTO World Trade Organisation

NAFTA North American Free Trade Agreement

ASEAN Association of southeast asian nations.

SAARC South Asian Association for Regional Cooperation

UAO Urban American Outdoors

6* Name Indias 3 key Export and Import products ? (VERY IMP*)

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Exports :

India's chief exports include computer software, agricultural products (cashews, coffee), cotton

textiles and clothing (ready-made garments, cotton yarn and textiles), gems and jewellery, cutdiamonds, handicrafts, iron ore, jute products, leather goods, shrimp, tea, and tobacco. The

country also exports industrial goods, such as appliances, electronic products, transport

equipment, light machinery as well as chemical and engineering products. India imports roughdiamonds, cuts them, and exports the finished gems. India's main exports in 2005 included USA

16.7%, UAE 8.5%, China 6.6%, Singapore 5.3%, UK 4.9%, Hong Kong 4.4%. India's services

contributed about 35% of the total exports as of 2010-11.

Imports :Capital goods and fuel, each account for about a quarter of Indian imports. Other imports of

India include edible oils, fertilizer, food grains, iron and steel, industrial machinery, professional

instruments and transportation equipment. Chemicals, precious and semi-precious stones andnon-ferrous metals are the other major imports. India's main import partners included China

7.3%, US 5.6%, Switzerland 4.7%.

7* What is PESTLE ? (VERY IMP*)

PESTLE stands for political, economic, social, technological, legal, and environmental.

PESTLE analysis is a process, often reflected in a format type document you create, to help

understand the overall market environment (market risks, market growth or decline, etc.) for aparticular industry, business, product, or project. It is often a key part of strategic, marketing,

and/or business planning.

PESTLE allows an organization to go in depth into their current status and weaknesses. It helpsleaders better manage and define dangerous areas for the organization and greener marketing

pastures.

8*State any 3 cultural/Political factors in PESTLE country presentation made by your

group? (VERY IMP*)

9*State any 3 general economic/Social parameters in any PESTEL analysis? (VERY IMP*)

10* Define Competitor? (VERY IMP)

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Definition of ' Competitor 'Any person orentity which is a rivalagainst another. Inbusiness,

a company in the sameindustry or a similar industry which offers a similarproduct orservice.

The presence of one or morecompetitorscan reduce the prices ofgoods and servicesas the

companies attempt to gaina largermarket share.Competition also requires companies to

become more efficientinorderto reducecosts. Fast-food restaurants McDonald's and Burger

King are competitors, as are Coca-Cola and Pepsi, and Wal-MartandTarget.

11* Why is Competitor analysis necessary ? (VERY IMP)

Importance of Competitor analysis :

To study the market;

To predict and forecast organizations demand and supply;

To formulate strategy;

To increase the market share;

To study the market trend and pattern;

To develop strategy for organizational growth;

When the organization is planning for the diversification and expansion plan;

To study forthcoming trends in the industry;

Understanding the current strategy strengths and weaknesses of a competitor can suggest

opportunities and threats that will merit a response;

Insight into future competitor strategies may help in predicting upcoming threats and

opportunities.

12*State 5 sources of getting competitor information ? (VERY IMP*)

Public sources :Newspapers, magazines, Advertisements and brochures intended for publicdistribution, Information freely available on the Internet and online research services, Publicfilings made with governmental or regulatory authorities, such as SEC reports, patent filings and

litigation records, Industry surveys or reports, Etc.

Conversations with customers :Talking with customers is essential. The more you know aboutyour customers and their businesses, the better you can meet their needs. However, you shouldn't

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contact customers for the purpose of obtaining confidential information about a competitor.

Customers may disclose information about a competitor's products or pricing, so long as the

information is not confidential.

Hiring third parties to obtain information : Sometimes company's hire third parties to help us

gather competitive intelligence and information about the market for products and services. Thirdparties are subject to the same standards of behavior that you abide by, so you should assume that

if we can't do it directly, you can't hire someone else to do it.

Giving gifts for confidential or proprietary information : In gathering competitive intelligence,

you should not give entertainment, gifts, favors or gratuities to induce someone to provide you

with information that's confidential or proprietary. You may, however, pay third parties forcompetitive intelligence that's derived from legitimate sources.

Attend conferences, events or trade shows : An easy way to research your competitors is to

attend conferences, exhibitions and trade shows. Visit your competitors stands, listen, look at

their material, take their free handouts and assess their competitive strength in their own country.

13*State 3 key strengths of MNC presentation made by your group ? (VERY IMP*)

14*Mention any 3 competitive advantages of doing business in CHINA ? (VERY IMP)

Chinas role as a global economic leader is by now consolidated, having radically

changed its economy from a predominantly agricultural one that was generally closed tointernational trade, to a market oriented one with dynamic banking and private sectors,

China is now top of the list of countries for whoever wants to expand and invest

internationally.

While Chinas first push was based on the export of highly competitively priced goods,

its growth in recent years has turned it into a major importer of western products.Coupled with the size of its population and the rise of the Chinese middle class, this

offers any international company doing business in China access to one of the worlds

most important markets for an immense variety of services and goods.

In 2008, foreign direct investment in China rose to 108 billion US dollars making the

countrys economy the largest in the world second only to the US. With a labour marketboth large in size and high in quality, and a government so committed to international

development that it has recently singled out key sectors for tailored government support,doing business in China should be high on the agenda of any company across the world.

Chinas higher education system is now the largest in the world, both in terms of overall

enrolment and in the number of PhDs awarded. This home grown labour market ensures

that anyone doing business in China will be dealing with the best and brightest in a wide

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array of disciplines, many of a very technical nature. Chinas commitment to education

makes it a very attractive place for organisations doing business in overseas markets.

15*Mention any 3 weakness (RISKS) of doing business in AFRICA ? (VERY IMP*)

Or

15*Mention any 5 political/economic risk in most African countries?

Political : South Africa is a young, relatively stable democracy, dominated by one political party.

The African National Congress (ANC) has won all four national elections since the start of

democracy in 1994. Jacob Zuma became president in May 2009 following the ANCs victory atthe polls securing 65.9% of the popular vote. He came to power with the support of the tripartite

alliance consisting of the South African Communist Party (SACP), the Congress of South

African Trade Unions (COSATU) and the ANC.

Although the ANC recently won 63% of the vote in the May 2011 Local Government Elections,the main opposition party, the Democratic Alliance, was deemed the biggest winner as it

increased its support base from 14% in 2006 to 25%. This gives the opposition a solid platform

to intensify their campaign and strengthen their bid for the 2014 national election.

Despite the ANCs domination of South African politics, diverse interests within and between thetripartite alliance creates its own checks and balances. Calls from the left for a more radical

approach to economic policy, including greater government intervention to create employment,

competes with the views of economic moderates who emphasize the importance of prudent

monetary and fiscal economic policy.

2012 is an important year in South African politics. All three members of the Tripartite Alliance

will be holding internal election and policy conferences. The most important of these is the ANC

elective conference which will be held in December, and will see the selection of the ANCpresident who will, effectively, lead the country after the 2014 national polls. Incumbent Jacob

Zuma is expected to run for a second term.

Economic Situation: South Africa has recovered from its first recession in 17 years after it

contracted by 1.7% in 2009 on the back of the collapse in global trade. Prudent macroeconomicpolicies and tight banking regulation limited the impact of the global downturn, and years of

fiscal responsibility provided the space to respond effectively to the crisis. The National Treasurycontinues to implement a counter cyclical fiscal policy and forecasts a deficit of 4.8% of GDP for2011/12 declining to 3% by 2014/15. But the National Treasury warned in February that the

global outlook had once again deteriorated and that much of Europe, South Africas major

trading partner, risked slipping into recession. This could harm domestic growth prospects. TheNational Treasury downgraded its growth forecast for 2012 from 3.4% to 2.7%. It is then

expected to recover, reaching 4.2% by 2014.

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The economy is diversified, with a strong services sector. Finance, real estate and business

services is the largest industry contributing 21.2% to GDP, General Government Services 16.3%

and Wholesale, retail and motor trade, catering and accommodation 14.5% and manufacturing13.4%. Mining only contributes 5.5% to GDP, but it is important for employment and is a

significant foreign exchange earner.

Unemployment remains an immense challenge with an official figure of 25.2% but the real

figure is probably nearer 40%. Two thirds of all those unemployed are below the age of 35. TheNational Treasurys forecasted growth rate falls short of the 6% rate analysts believe the country

needs to tackle its stubbornly high unemployment levels. The South African Government has

embarked on an ambitious multi-year capital expenditure programme worth approximately 70billion, to tackle infrastructure bottlenecks in energy, transport and water. It is hoped that the

infrastructure programme will create short term employment and also provide the infrastructure

necessary for the economy to grow at a faster pace in the longer term.

Key challenges for the year ahead will come from chronic skills shortages, low productivity

levels and infrastructure bottlenecks particularly in energy, transport and water which are a resultfrom years of underinvestment.

South Africa has an inflation target band of 3-6%, but this framework is heavily criticized

by the left. Inflation bottomed out at 3.2% in September 2010 and has been climbing slowly

since (average 5% in 2011). External cost push factors of high fuel and food prices have

taken the blame. Domestic factors of double digit increases in electricity and significantly

above inflation wage increases are expected to add further pressure. The Reserve Bank has

cut the repo rate by 6.5 ppt since December 2008 to 5.5% but could start tightening before

the end of the year.

South Africa is now part of the BRICS grouping and China is South Africas largest tradingpartner, although the UK is in the top 5. UK exports in goods to South Africa in 2011 were worth3.3 billion, while imports from South Africa totaled 2.2 billion. Some 600 South African

companies are present in the UK (4 out of 5 South African businesses in Europe are based in the

UK). Both countries are committed to the bilateral government agreement to double trade by2015.

Human Rights:Human rights in South Africa are protected under its 1996 constitution, which

has been hailed as one of the most progressive in the world as it also guarantees economic, social

and cultural rights. The country has a strong commitment to human rights and has statutoryoversight bodies such as the South African Human Rights Commission which protects the rights

guaranteed under the Constitution.

South Africa is signatory to various international human rights instruments including the

Universal Declaration of Human Rights; African Charter on Human and Peoples' Rights; theInternational Covenant on Economic, Social and Cultural Rights; and the UN declaration on

sexual orientation and gender identity.

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However, concerns have been raised over poverty and access to healthcare; domestic violence

and violence against women; discrimination on grounds of sexual orientation or gender

presentation; high rates of violent crime against women and LGBTI individuals; and racism andxenophobia.

Bribery and Corruption: Bribery is illegal. It is an offence for British nationals or someonewho is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to

bribe anywhere in the world.

In addition, a commercial organisation carrying on a business in the UK can be liable for the

conduct of a person who is neither a UK national or resident in the UK or a body incorporated or

formed in the UK. In this case it does not matter whether the acts or omissions which form partof the offence take place in the UK or elsewhere.

In 2011, South Africa was ranked 64th out of 182 countries inTransparency Internationals

corruption perception index (CPI).

South Africa is a signatory to the OECD Anti-Bribery Convention. The 2010 peer review by

members of the Working Group on Bribery found that South Africa had a modern anti-briberylegislation, but more needed to be done on enforcement.

Bribery and corruption is not regarded as endemic in South Africa, but there have been reports

and some high level convictions of corruption, in both private and public organisations in South

Africa. Any approaches to experiences relating to bribery and corruption in business dealingsshould be reported to relevant authorities. It should be noted that UK bribery legislation also

applies to UK registered companies and UK nationals committing acts of bribery wholly outside

the UK.

Terrorism Threat: There is an underlying threat from terrorism. Attacks, although unlikely,could be indiscriminate, including in places frequented by expatriates and foreign travelers.

Protective Security Advice: South Africa has a high level of crime and visitors should be

vigilant about personal security and when driving around the country. Please consult FCO traveladvice for up-to-date information about the situation.

Visitors to South Africa should be diligent about protecting digital data. Spyware, phishing and

malicious software tools are common. One example of this is to send authentic-looking emails to

potential victims. The emails appear to have been sent from a trusted institution such as a bank,

requesting recipients to divulge personal information. Once criminals have these details they areable to steal money from the victims' bank accounts. Diligence coupled with firewalls or spyware

removal tools are recommended.

Intellectual Property: IP rights are territorial, that is they only give protection in the countrieswhere they are granted or registered. If you are thinking about trading internationally, they you

should consider registering your IP rights in your export markets.

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In 2008, South Africa enacted the IPR Intellectual Property Right for Publicly Financed Research

and Development Act. The law clarifies obligations related to the ownership of intellectual

property rights in the country and applies to aesthetic and functional designs, marks related topatentable inventions and copyright

16* Why legal Knowledge is Important in international business ? (VERY IMP*)

It is essential to know about business law before starting a business, as it will help you operate

your business without the hindrances of ignorance. It is better to seek the expert guidance of anaccountant and an attorney to learn about the latest business laws that will affect your business.

Below is a list of the most important business laws.

Business structure laws: There are different laws for different business entities. Be certain you

learn about the business laws that govern the kind of business entity that you choose to start. The

major types of businesses are C, S and closed corporations, limited liability companies, and soleproprietorships.

Zoning Laws: It is essential to know about zoning laws, as certain zones are restricted in certainareas. It deals with the kind or type of business allowed in certain areas, how the land

surrounding a business is used, signboards, advertisements, and parking.

Licensing Laws: In order to operate a business certain licenses are required and there are some

important business laws you need to know. If a business operates without these licenses, it isillegal and the business may be dissolved or forced to close.

Trademark and Patent Laws: These are laws that deal with ownership; intellectual propertyrights, and inventions. They are necessary to protect the business.

Employment Laws: These are laws regarding the hiring and firing of employees, their rights,

compensation, safety, work place discrimination, child labor laws, overtime pay structure,disability laws and unemployment laws.

Tax Laws: This section deals with filing of tax returns and depends on the kind of business entity

and the state the business operates in, sales tax. These include franchise tax, income tax and

other state and federal tax requirements of a business. These are very important business lawsyou need to know before starting a business.

Environmental Laws: The government enforces the environmental laws for the discharge of

hazardous waste and the recycling laws pertaining to the business.

Health Department Permits: This is necessary if your business deals with food products. Youmust get health department permits to operate your business.

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Fire Department Permits and Air and Water Pollution Control Permits: There are laws that

certain kinds of business entities must get permits from these departments to operate.

Beware Of LawsThe list above contains basic business laws you need to know before starting acompany. It is necessary to take precautions that you are not violating any law by operating your

business. You must obtain all the necessary permits and licenses from the appropriate authority.

Additional HelpThere are firms that offer their services and products to help make the process of

starting and running a business very simple and easy. There is also software to make sure yourcompany remains legitimate.

17*Define RISKS? (VERY IMP*)

Definition: A probability orthreat ofdamage, injury, liability,loss, or any othernegative

occurrence that is caused by externalorinternalvulnerabilities, and that may be avoidedthrough preemptive action.

18*State any 5 keys risks in Global business (International trade)? (VERY IMP*)

The risks in Global business are: (any 5)

(1) Strategic Risk(2) Operational Risk

(3) Political Risk

(4) Country Risk(5) Technological Risk

(6) Environmental Risk

(7) Economic Risk

(8) Financial Risk(9) Terrorism Risk

Strategic Risk: The ability of a firm to make a strategic decision in order to respond to the

forces that are a source of risk. These forces also impact the competitiveness of a firm. Porterdefines them as: threat of new entrants in the industry, threat of substitute goods and services,intensity of competition within the industry, bargaining power of suppliers, and bargaining

power of consumers.

Operational Risk: This is caused by the assets and financial capital that aid in the day-to-daybusiness operations. The breakdown of machineries, supply and demand of the resources and

products, shortfall of the goods and services, lack of perfect logistic and inventory will lead to

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inefficiency of production. By controlling costs, unnecessary waste will be reduced, and the

process improvement may enhance the lead-time, reduce variance and contribute to efficiency in

globalization.

Political Risk: The political actions and instability may make it difficult for companies to

operate efficiently in these countries due to negative publicity and impact created by individualsin the top government. A firm cannot effectively operate to its full capacity in order to maximize

profit in such an unstable country's political turbulence. A new and hostile government mayreplace the friendly one, and hence expropriate foreign assets.

Country Risk: The culture or the instability of a country may create risks that may make it

difficult for multinational companies to operate safely, effectively, and efficiently. Some of thecountry risks come from the governments' policies, economic conditions, security factors, and

political conditions. Solving one of these problems without all of the problems (aggregate)

together will not be enough in mitigating the country risk.

Technological Risk: Lack of security in electronic transactions, the cost of developing newtechnology, and the fact that these new technology may fail, and when all of these are coupled

with the outdated existing technology, the result may create a dangerous effect in doing business

in the international arena.

Environmental Risk: Air, water, and environmental pollution may affect the health of thecitizens, and lead to public outcry of the citizens. These problems may also lead to damaging the

reputation of the companies that do business in that area.

Economic Risk: This comes from the inability of a country to meet its financial obligations. The

changing of foreign-investment or/and domestic fiscal or monetary policies. The effect of

exchange-rate and interest rate make it difficult to conduct international business.

Financial Risk: This area is affected by the currency exchange rate, government flexibility in

allowing the firms to repatriate profits or funds outside the country. The devaluation and

inflation will also impact the firm's ability to operate at an efficient capacity and still be stable.Most countries make it difficult for foreign firms to repatriate funds thus forcing these firms to

invest its funds at a less optimal level. Sometimes, firms' assets are confiscated and that

contributes to financial losses.

Terrorism Risk: These are attacks that may stem from lack of hope; confidence; differences inculture and religious philosophy, and/or merely hate of companies by citizens of host countries.

It leads to potential hostile attitudes, sabotage of foreign companies and/or kidnapping of theemployers and employees. Such frustrating situations make it difficult to operate in thesecountries.

19*What are the key risks we face while doing business in RUSSIA? (IMP)

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Political and Economic: Russias economy remains in good short term health with consensus

expectations for GDP growth this year of around 3.5 - 4%. The budget is close to balanced and

unemployment and inflation are at historic lows. However, commentators continue to warn thateconomic and institutional reforms are needed for the economy to achieve its full potential and

reduce its vulnerability to global commodity price changes.

These reforms include modernising and diversifying the economy; improving investment,

innovation and the business environment, notably by tackling corruption and reducing the role ofthe state; and reorient spending towards healthcare, education and infrastructure. The makeup of

the Governments cabinet will give an indication of how Russia intends to tackle these issues.

Oil and gas are at the heart of the Russian economy, responsible for around 25% of GDP, 50% ofFederal budget revenues and 80% of exports. The Russian real economy has recovered from the

dramatic falls of 2009 and the IMF currently predict GDP growth at 4% and 3.9% in 2012 and

2013 respectively. The 2011 World Banks Ease of Doing Business survey ranks Russia 120th

out of 183 countries, indicating significant bureaucratic challenges in the business environment.

Human Rights: 2014 Sochi Winter Olympic games offer extensive commercial opportunities

for British business. However, the site is close to the volatile North Caucasus region, where there

are continuing reports of grave human rights violations. Amnesty International has reported

that armed groups have carried out attacks in Chechnya, Dagestan, Ingushetia, North Ossetiaand Kabardino-Balkaria. Amnesty also reports that the efforts of law enforcement agencies to

tackle these groups are responsible for many of the human rights violations including enforced

disappearances, extrajudicial executions, unlawful detentions, torture and other ill-

treatment, with very limited access if any to judicial redress.

Bribery and Corruption: Corruption is a major barrier to business in Russia. Business

concerned that situation is deteriorating. Medvedev has made tackling corruption a major part ofhis modernisation agenda but most Russians are sceptical of short-term change.

Corruption is endemic in Russia. Transparency International ranks Russia 143 out of 182

countries in its Corruption Perceptions Index in. Anti-corruption lobby group Clean

Hands estimate that the level of bribes is as much as half of Russias GDP.

This damages Russias economic development. BNP Paribas estimate that perceptions ofcorruption costs Russia the equivalent of 4 per cent of GDP in lost foreign investment each year.

The general public identified it as the biggest block to economic growth in a recent survey by

independent pollsters Levada Centre. The Association of European Business agrees: extras can

account for 20% of the cost of doing business in Russia.

Terrorism Threat: There is a high threat from terrorism. Attacks cannot be ruled out and could

be indiscriminate, including in places frequented by expatriates and foreign travellers. Attacks

have occurred most frequently in Moscow and in some regions of the North Caucasus particularly Dagestan and Chechnya.

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Protective Security Advice: There are protective security issues attached to doing business in

Russia; business people need to be conscious of the following activities of the local security

service (FSB):

IT attack against office computers, laptops, PDAs and other electronic devices.

Physical, audio and video surveillance.

Approaches to staff.

Interception of telephone calls (landline and mobile), texts, emails, fax and post.

Searches of offices, homes, vehicles and (especially) hotel rooms (including safes).

20*Define Globalisation? (VERY IMP*)

Definition: Globalisation is a process where an increased proportion of economic, social and

cultural activity is carried out across national borders. The process of globalisation has

significant economic, business and social implications.

21*Mention any 3 key strengths of Globalisation? (VERY IMP*)

Resources of different countries are used for producing goods and services they are able

to do most efficiently.

Consumers to get much wider variety of products to choose from.

Consumers get the product they want at more competitive prices.

Companies are able to procure input goods and services required at most competitive

prices.

Companies get get access to much wider markets

It promotes understanding and goodwill among different countries.

Businesses and investors get much wider opportunities for investment.

Adverse impact of fluctuations in agricultural productions in one area can be reduced by

pooling of production of different areas.

22*Mention any 3 weakness of Globalisation? (VERY IMP*)

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Developed countries can stifle development of undeveloped and under-developed

countries.

Economic depression in one country can trigger adverse reaction across the globe.

It can increase spread of communicable diseases.

Companies face much greater competition. This can put smaller companies, at adisadvantage as they do not have resources to compete at global scale.

Difference of opinions from each member country, therefore splitting up of ideas, and not

holding up a universal concept which everybody can agree on, which can lead to far

worse results than expected.

23*mention any 5 attributes necessary in a Global manager? (VERY IMP*)

Understand the worldwide business

Learn about many cultures

Work with many types of people

Create cultural synergy

Adapt to living in many cultures

Use cross-cultural skills daily

Treat foreign colleagues as equals

Use foreign assignments as career development

Understanding of global economies

Ability to see opportunities as they relate to the company

24*Why Ethics is a key attributes necessary for a Company? (VERY IMP*)

One of the most important attributes for any business success, is the distinguishing quality of

practicing admirable business ethics. Business ethics, practiced throughout the deepest layers ofa company, become the heart and soul of the company's culture and can mean the difference

between success and failure.

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"If you have integrity, nothing else matters. If you don't have integrity, nothing else matters." --

Alan K. Simpson

In the research study, "Does Business Ethics Pay?" by The Institute of Business Ethics (IBE), itwas found that companies displaying a "clear commitment to ethical conduct" consistently

outperform companies that do not display ethical conduct. The Director of IBE, Philippa FosterBlack, stated: "Not only is ethical behaviour in business life the right thing to do in principle, we

have shown that it pays off in financial returns." These findings deserve to be considered as animportant insight for companies striving for long-term success and growth.

Recognizing the significance of business ethics as a tool for achieving your desired outcome is

only the beginning. A small business that instills a deep-seated theme of business ethics within itsstrategies and policies will be evident among customers. It's overall influence will lead to a

profitable, successful company. By recognizing the value of practicing admirable business ethics

25*Name any 3 Globally accepted quality processes? (VERY IMP)

26*Mention any 3 points discussed by Jack Welch in his strategy review? (VERY IMP*)

Jack Welch on Strategy

One of the best chapters in Jack Welch's new bookWinning is on strategy. Let's see what

he says:

"It's not that I don't understand their [the experts'] theories about competitive advantage,

core competencies, virtual commerce, supply chain economics, disruptive innovation,

and so on, it's just that the way these experts tend to talk about strategy -- as if it is some

kind of high-brain scientific methodology -- feels really off to me."

"In real life, strategy is actually very straightforward. You pick a general direction (Welch calls

this the "big aha") and implement like hell."

Welch boils down strategy into 3 + 5. The "3" refers to 3 steps where the key is to come up with

a "big aha". The "5" refers to five slides that answer a set of questions that cycle back to the "big

aha".

The Three Steps:

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1. First, come up with a "big aha" for your business -- a smart, realistic, relatively fast way

to gain sustainable competitive advantage.

2. Second, put the right people in the right jobs to drive the "big aha" forward.

3. Third, relentlessly seek out the best practices to achieve your "big aha", whether inside or

out, adapt them, and continually improve them.

The Title of the Five Slides

1. What the Play Field Looks Like Now. (scoping out the competition)

2. What the Competition Has Been Up To (where is the competition going? are there new

entrants?)

3. What You've Been Up To (scoping out yourself)

4. What's Around the Corner (where are the threats?)

5. What's Your Winning Move?

27*Give 3 reason for justifying a centrally managed and controlled MNC structure? (IMP)

Centralized organizations can be extremely efficient regarding business decisions. Business ownerstypically develop the companys mission and vision, and set objectives for managers and employees tofollow when achieving these goals. Decentralized organizations utilize individuals with a variety ofexpertise and knowledge for running various business operations. A broad-based management teamhelps to ensure the company has knowledgeable directors or managers to handle various types ofbusiness situations.

28*Name any 5 Global MNC Brands ?

Apple, Google, IBM, Microsoft, IBM, Wallmart, Samsung, GE.

29*name 3 things that Indian companies can learn from MNCs ?

30* Why is strategy relevant for any Company in a global scenario ? (IMP)

Understanding what strategy is in todays global business environment, one can say theimproving operational effectiveness is a necessary part of management, but it is not strategy. In

confusing the two, managers have unintentionally backed into a way of thinking about

competition that is driving many industries toward competitive convergence, which is no onesbest interest and is not inevitable. Managers must clearly distinguish operational effectiveness

from strategy. Both are essential, but the two agendas are different. The operational agenda

involves continual improvement everywhere there are no trade-offs. Failure to do this createsvulnerability even for companies with a good strategy. The operational agenda is the proper

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place for constant change, flexibility, and relentless efforts to achieve best practice. In contrast,

the strategic agenda is the right place for defining a unique position, making clear trade-offs, a

tightening fit. It involves the continual search for ways to reinforce and extend the companysposition. The strategic agenda demands discipline and continuity; its enemies are distraction and

compromise.

31*Define Strategy ? (IMP)

1. A method orplan chosen to bringabout a desired future, such as achievement of a goal or

solution to a problem.

2. The art and science of planning and marshalling resources for their most efficient and

effective use. The term is derived from the Greek word for generalship or leading an army. See

also tactics.

32* What are tariff and non-tariff barriers in international trade ?

Tariff barriers are duties imposed on goods which effectively create an obstacle to trade,although this is not necessarily the purpose of putting tariffs in place. Tariffbarriers are alsosometimes known as import restraints, because they limit the amount of goods which can beimported into a country. Many organizations which promote trade are concerned aboutbothtariffand non-tariff barriers tofree trade, and a number of nations have agreed toradically reduce their trade barriers to promote the exchange of goods across their borders.

33. 5 global MNC brands

Apple Inc, Microsoft, IBM, Samsung, Walmart, GE

34) 3 things that Indian companies can learn from MNCs1 ---> MNCs provide better environment to put skill on our best level.

2 --->It provide good packages of salary as compare to Indian companies.

3 ---> It have good infrastructure.

4 ---> It provide security, policies, facilities etc.

35. pestle analysis

Originally known as PEST Analysis, this is a macro environmental framework used to understand

the impact of the external factors on the organization and is used as strategic analytical technique.

PEST stands for "Political, Economic, Social, and Technological factors.

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Francis Aguilar is referred to as the originator of this tool. He talked about ETPS Economic,

Technological, Political, and Social as the four important factors for Scanning the Business

Environment. Later Legal and Environmental factors were also added by some analysts and thus

evolved the term PESTLE Analysis.

Let us examine these factor in a bit more detail.

Political Factors affects the organizations in terms of government regulations and legal issues and

define both formal and informal rules under which the firm must operate. Examples are:

Political stability

Tax policy

Employment and labor law

Environmental regulations

Trade restrictions

Tariffs etc

Economic factors affect the business operations and decision making of the organization. For

example the predicted recession is preventing the organizations from increasing the workforce .

Other examples are:

Economic growth

Interest rates

Inflation rate

Social factors refer to the cultural and demographic aspects of the environment. For example

increase in the health consciousness may affect the demand of the companys product. Other factor

includes:

Age distribution

Population growth rate

Emphasis on safety

Career attitudes

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Technological factors affect the cost and quality of the outputs. These also determine the barriers

to entry and minimum efficient production level. Factors include:

Automation

Technology incentives

Rate of technological change

R&D activity

Legal factors influence the companys operation, its costs, and the demand for its products. Factors

include:

Consumer law

Antitrust law

Employment law

Discrimination law

Health and safety law

Environmental factors refer to ecological and environmental aspects such as weather, climate, and

climate change. Climate change is a hot topic these days and organizations are restructuring their

operations thus giving space to innovation and concept of Green Business.

36. global business stategy

This is essentially the point where a global business strategy differs from a national businessdevelopment strategy as different other factors such as product standardization and adaptation come

in.

The arguments in favor of the global business strategy of standardization are as follows: -

It benefits in the economies of scale accruing to the company with it being able to produce in

large quantities using more or less the same techniques of production

It preserves the image of the home country which houses the global corporation since it helps

in minimizing the costs of alteration, design or modification, handling and stocking the product,

speeding up delivery systems. It also helps in saving the managerial time and effort to take

decisions regarding the manufacture of different products.

It helps in faster accumulation of the learning experience as fallout of the learning-by-doing

approach.

Risk of doing business in Africa

challenges of Africa are:

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fluctuating currencies

bureaucratic red tape, which is slowly getting easier to wade through

graft and corruption, as much a fault of the non-Africans who pass the brown paper bags as the poor and often unpaid

civil servant who accepts the bag

nepotism

wars and unrest, though the changes in South Africa are starting to create a ripple of peace and democracy throughout

the region

lack of local capital

monopolies such as marketing boards, state trading firms, foreign exchange restrictions, trade taxes and quotas and

concentration on limited commodities all place a disincentive on exports, thus delinking Africa from the world economy.

lack of infrastructure, though in areas such as telecommunications and energy, Africa is able to use new technologies to

leapfrog more advanced economies

the political environment in Africa remains relatively unstable and thus intimidating to potential investors, especially

those seeking to break into the continent for the first time.Africa Challenges

1. Political Environment

Political Environment was ranked as the biggest challenge to doing business on the continent. The

reality, though, is that Africa is the most stable it has ever been with less conflicts and wars. An

interesting statistic was presented by one of the panellists that between 1960 and 2000, Africa

experienced some 85 coup dtats and only 10 in this last decade. The last few years have been

marked by a number of peaceful transitions of power, with the most notable and recent ones in the

following countries: Malawi, Nigeria, Senegal and Zambia.

2. Regulatory Environment

Regulatory Environment was ranked the second biggest challenge in terms of business on the

continent. The African regulatory environment is challenging for a number of reasons. Firstly, there is

sometimes the lack of policy clarity which then heightens perceptions of risk. It was concurred at the

conference that above all, investors seek stability before putting their money into a particular

environment. Secondly, is the lack of policy continuity. Changes in government or even, just, cabinet

reshuffles within the same government, sometimes lead to changes in policy and this can be

particularly disruptive in sectors such as power/energy, for example, where investments require a

long term outlook. Third, is the lack of policy consistency. If, for example, a country has chosen to

make it easy to do business, this should reflect in the time to register a new business, to open a

bank account, to get work permits, to get construction permits and so forth and requires a concerted

effort across all government agencies. Policy consistency will come through in how the policy is

executed and this manifests, ultimately, through the investors experiences.

3. Tax, Customs and Duties

Tax, Customs and Duties unsurprisingly ranked highly as a challenge. Delays in moving goods

across borders within and between regions are well documented and this is a key priority for the

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African Union and the various regional bodies. Delays at African customs are, on average, longer

than in the rest of the world: 12 days in sub-Saharan countries compared with seven days in Latin

America, less than six days in Central and East Asia, and slightly more than four days in Central and

East Europe. These delays add a tremendous cost to importers and exporters, and they increase the

transaction costs of trading among African countries. For food and other perishable goods, suchdelays can be devastating. The net impact of these trade barriers is that intra-Africa trade remains

extremely low at 13%.

Given that various governments on the continent have committed to the Tripartite Free Trade Area

comprising SADC-COMESA-EAC, trade and non-trade barriers are likely to reduce over time. The

view emerging from the conference was that Africa should grow exponentially with regional

integration. Africa is managing to achieve an impressive average 5% growth rate despite the

significant trade and non-trade barriers currently in place.

China competitive advantage

Technology driven MNC's may have a slight advantage..that too not for a long time otherwise dominationof MNC in all segaments will be gone, chinese companies are going in a big way for Branding (cheap &low quality chinese products atmosphere will be over soon) & within years chinese companies will be atpar if not ahead with any MNC Brand.

The allure of a prestigious brand.

The esteem of working for a global corporation.

The superior conditions and opportunities available.RussiaRussia is negatively ranked as the 143th least corrupt country in the 2011 Corruption PerceptionsIndex by Transparency International, a global measure of corruption amongst public officials andpoliticians. Corporation tax is levied at a rate of 20%. In addition, Federal and Municipal taxes, which

vary according to the levels of capitalisation, are levied.