ASSIGNMENT

MBA402 –International
Business Management
 ASSIGNMENT

SET-1

Ques.1 Define international Business? What are the various factors affecting
international Business?

Ans. International business encompasses all commercial activities that take

place to promote the transfer of goods, services, resources, people, ideas, and
technologies across national boundaries.

International business occurs in many different formats:

 The movement of goods from country to another (exporting, importing,

trade)
 Contractual agreements that allow foreign firms to use products, services,
and processes from other nations (licensing, franchising)
 The formation and operations of sales, manufacturing, research and
development, and distribution facilities in foreign markets

The various factors affecting international Business:

Economy
The economic environment has a direct impact on your business, so if you're
planning to take your business global, thoroughly research the countries where
you're going to operate. Consider the inflation and interest rates as well as the
savings and investment rates. Try to find more information about the volume
of imports and exports. Knowing the existing state of the economy is
paramount.

Politics
The legal and political environment of foreign markets has a direct effect on
your business. Furthermore, these factors can vary from one city or state to
the next. For example, each state in the U.S. has its own laws and regulations.
Companies must comply with the laws and requirements of the countries
where they do business and obtain new licenses or pay higher fees if
necessary.

Cultural Differences
Each country has its own culture, which affects international business in three
main areas: organizational hierarchy, etiquette and communication. Japan, for
instance, values social hierarchy in all aspects of life, including work.
Scandinavian countries, on the other hand, have a relatively flat organizational
hierarchy. Spain and other Mediterranean countries emphasize leisure time;
Germany and Japan value efficiency and have strict workplace rules.

Social Environment
Its social environment determines a country's value system. Certain factors,
such as peoples’ view towards wealth, customs, cost structure, labor mobility
and cultural heritage, affect international business. For example, customers
living in one country may not be interested in the same products and services
as those residing in another country.

Technological Factors
Technology is one of the primary environmental factors you should consider
before expanding your business. Does the host country have the technology
and skills you need to run your business smoothly? Access to modern
technologies is essential in industries like marketing, manufacturing, medicine
and research. A creative agency or a research lab, for instance, have greater
technology requirements than a law firm or a consulting company.

Ques.2 Explain detail structure of WTO with diagram?

Ans. WTO is headed by a director-general (currently Mr. Renato Ruggiero,

former Italian trade minister) who has four deputies from different member
states. The WTO’s ruling body is the General Council, comprising each member
country’s permanent envoys. It sits in Geneva on an average once a month. Its
supreme authority is the ministerial conference, to be held every two years.
The General Council appoints the director- general to a four-year term after
consultations among member countries. WTO started with 125 countries. But
seven more states including China, Russia were admitted later on as members.
Members range from the top four world trade powers—the United States, the
European Union, Japan and Canada—to the increasingly influential emerging
developing economies of Asia to some of the world’s poorest countries, like
Bangladesh, Guinea.

Structure of
WTO

Dispute Trade Policy

Settlement Review
body(DSB) Body(TPRB)

The two important bodies in WTO have been set up to perform its various
functions:

1. Dispute Settlement Body (DSB):

The DSB, on which all member countries can sit, usually meets twice a month
to hear complaints of violations of WTO rules and agreements. It sets up
expert panels to study disputes and decide if the rules are being broken. The
DSB’s final decisions, unlike those of a similar but less powerful body in the old
GATT, cannot be challenged.

2. Trade Policy Review Body (TPRB):

The TPRB is a forum for the entire membership to review the trade policies of
all WTO member countries. Major trading policies are reviewed every two
years, others every four years.
Other major bodies are the Council for Trade in Goods, the Council for Trade in
Services and the Council for Trade-Related Aspects of Intellectual Property
Rights (TRIPS).

Ques.3 Write a short note on international regulatory bodies.

Ans. The prime responsibility for safety is assigned to the operator. The
primary objective of the regulatory body is to ensure that the operator fulfils
this responsibility to protect human health, and the environment from possible
adverse effects arising from nuclear facilities and management of radioactive
waste. In order to achieve these objectives the regulatory body defines
policies, safety principles and associated criteria as a basis for its regulatory
actions. Table VI presents the main functions of the regulatory body.

In order to discharge its main responsibilities the regulatory body needs to: ·

 Establish a process for dealing with application, e.g. issuing of

an authorization; ·
 Provide guidance to the operator on developing and
presenting safety assessments or any other required safety related
information; ·
 Ensure that proprietary information is protected; ·
 Communicate with, and provide information to, other competent
governmental bodies, international organizations and the public
 Ensure that operating experience is appropriately analysed and
that lessons to be learned are disseminated; · Ensure that
appropriate records relating to the safety of facilities and activities
are retained and retrievable; ·
 Ensure that its regulatory principles and criteria are adequate and
valid, and shall take into consideration internationally endorsed
standards and recommendations; ·
 Advise the government on matters related to the safety of facilities
and activities; ·
 Confirm the competence of personnel responsible for the
safe operation of the facility or activity; and ·
 Confirm that safety is managed adequately by the operator.

SET-2