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Tnteonahonal Bucines

ExchegeRat Was
detenneo byME9
.c) Sitetionbe fore..exchange.yats..
Ly
Mercantilism - Smce curer
nmefale ike qold
b
Sncecurencyp
were
weneused
not lined.
as. toaniaciOnal eons

for
DeLeeped..counhies
eq. India expotedtoakodventoge
with cnfais mears
saw ecttonad worthRal0o
to
Uk,Ukeoneste d nto clotth e sold it to

cu)
fomIndiauillL
Gatkan f
Qote to balance
UKto tepeys
RKelhange ate to comecd tu cume cied
Pincipu Punclatina Powe Panty CPPP) wxd.
USA LTroy Ounce Gold ost 35
Inîadia Coss Rs. 70o
Us$3s Rs. 70O
Rs.
Us$ = Rs. 20
Similaty Arr all the Caunbes
Thus, IME usedus dollay.
o"Velicle Cureny
fur dekejnitog the exehorge ra.

s2 Explain compcnents «f Bhlance cd Payonent

L> Balanee caPayments a doLlmenA that
cephurs. all..tsansachoncfntexnoahinel Busines
CourtY (Omporngnts aYe
) uYYenf -Account
a. Merchandise- Physic al g00ods that 0r espokd/imgoh
Dovisbles - Serv'ees, Eq Actng At, Tonsm.ete
(1) Capital Account
a. Bvate - Orqs inyesing in other CoUnhies
OffioBont
b. Bankinq - Bon
-(ov.
 GscU) IME Assistance - bOans tD fnarncial poYCanbe.
IY) SDR Atlocahibrnt - Special Dsowing Rig nt offered o
cach couny (Eq. Wallet)
CV) Resenes l Monelony Gold- Resenes vd te county
Expoo) - Cedit Tmpu - Debit

S Expain ThecTy o Country Size - ls vastneu ady o

Ai [advankegeous

Accesding to this theory biqne ss of couny

advontog because d Aloi iloinq eagons
weathe condihons, soil, e@ins e.
c) Helps in having voned natUal esoYces
Ls fq. India Spices, Tea, Cotton Vore, ete
L> It Such a courny dso ha
populahon to mateh ta
size, t has
eonomnjes of Kala
advontage thougu masS Podach,
multirtalentedl sklled tabous Re er
eOUny 19 isadvantogeos in nae
indusjes
c+ Exploin Mate in India Concept wth the help
PoportionTheory offacto

C) Facho Proporon Theoy

actors of Bocluchon that nflunees an
O Land
eLonomy
labovr @apita
(3) Raw
A
Malenal (Na) ad ResOUYLes Tahnology
Skills.
(ountry shoud icdanbfy fectors thad
aburdonce k hich can co) they home
paa fre dvantaqe for the
Acerdingly based
as cd on the cost
shold oude Nonfectos to ohlize for
expott whih fecios to
Dodueon k
mptbom othes coUn
 Ls
Usualay,Deelope d counbies
intensie while denelapingcantie apital ar
jnengive.
Lndia clso labo intensie wit
fecoys such | and, Labour, Raw
Meteial, ete
tefe The sbenqths of Developed aunbie
chile hat od dovelopy ounbie
Thezebrrn 0rds te.tonsihm boma
eunby h adenebaped counby Iodia shoull dudo
capital Come as
Arona deelope
Counies that iswhyMake in Drdio" concepk
beeomes esy impotent
TheMake jn Trdia onceph pmanepate Bor
tthe tacfors pporhon thaory as it mtend to
attract FDIndcapitl trom deeloped countfs
The coNLphpoomoke CAMparMey
bing
Capitad,technolsqy inbesbchUr to ndia
to uppex bandin tiuseAcs
tensit9n. nto doveloped couny
Gd Explain Raymond Vemon. Praduct Lite Gycla Theory
Roymond Vemon exlains the iginal Padu et
ife cycla they nthe Context of Inteano bonad
Busness.
4 stoges-Ine, Cooth Matuity, Deeline
4 for companieslarninq to erpand gtoad intesnakional,
"nmovatecPensh is._the pre ssue daeoete
com pehhion & Customer denand.
o, customer buyinq power has inrtase d.
to Sumde by innarahnq te conmny
os to invest in tne follooy
ORacruitinq 'mnovetit peopeg Cos
) Cre ate hoalHy eironmet
L
Thug innahon, new produets ae deeloped
cohich naed. ho be picod hiqh the compay
go glbla to èxplore biqgematkak
peioU lyp menion- inveshmeuk beto
mtatoM & cupycah enter h
To ilupelehe situaho nmorke
ofanes podue
cOmpony wim intenahmal busines Vermon
defne) he PLC follow
O_n bodueon
aunch an innoatve prodwct
the wcd to
Creahm cost
Gpowth
The dmandmereoves whih athacs compehb uho
poduat at lowe
tney hane hot ncume cost
Matuity cant
Trmovato e t loweret SO
hiftsthe gduet
to lo0 cost countses
Decine
Veep shifhng paduchon bose to due co
Detie
Mahnhy Imitatos entes
Inho
Q6 Explaim Hofste de's Six_CutturadD'mension
L fame wont. for COSS. -celturalmunicahom
whichdescnbesepfeckalsocietË.cultu on yaues
oitsnembeas hoothe sevalwesclate to
behan'er
deried Aemdochos analysis
Six ulhral Dimens(wny the theony:
DIodiidualsmollechxism.
Us’ndindualsht-diduals take ae
themseves
Japan ’ collechvishe-lndividwas tate
each other
Uncxkainhe Avoidanee ( Risk taking abi lity )
strct
fq Goeece - tiqh unertainty awidance- How
Denmatklow -Adaplakle
OPowes Distanee c Strength o SoiadHiexarchy)
EaJapan- Youyboc has higherauthomhy and
Should be
Subordinates See each
Denmark - Superos
other asvale.
4)Mascuihib- femininty (Iask vs Pesoy osiented J
Eg--Japan Masuline - CompehhivnessTsk fnt.
Scandinavian Counie -kminine Peeple st,
Shortesm Vs lonq- term ientohon
Sotter
Ea. China -ong term success
Uk,US - snot term Suceess zlong tervy
2ndlgenoevs elfshain
Idulgenee tHauirg fn in
self-rtshraint wtholol dasires fol|ow
Sociat nom Eq Middle eosh
Q] what is the sole o# w?O in
b WTO- World Trode
foternahon ausines
Ly Funchons Orgonizahon
WTO
O Defininq the zules od trade bw counhies
Negchakinq 2implementtng tode Ogreement
SUYe that fle membeN counes od hee to
WTO greaments
Pime divtnq facto A Cunenacuont toarsot
Legal inshumems
Legal od wTO
GATT - General
GATS -
General Ageament 0
Trade Sevti
TRIPS - Aqreemen Tsacle -Patoted IP Rights
4TRIMS Toadde. Ralated In stment MeasUes
LObjechives of wO
OTrad ibealisaion
Non-disoimination
Roisng storcdod f Laing
)oimum uhhzato Wod Roouy
Enmeutal Coneem
aWhat is the ole d TME mLntemahonal Busineys
TME- Internahorol Monehoy Aend
Rasponsible foY connechng the cunene t ha wotd
Ly 20o+ CounmesfO-}es rtoloal Moneony Co
openion
erpetencing halanoe rd payment polem
Ly Anchon IMF:

) Lendinq - lend s todontoring

O Surveillance eeonomie & Gnancil deveo
cOUnnes wih Bop issues
Technial Assstner
Checke cTME!
Toining
O Promote intemasonal moretory cooperohon
2 Balaneed
OExcoge sability Improe Bop
 tD:

Q1 hat is theole o wod Bank

s Motto: "wotd fee otPoverty
Wotd 2ank
OCBRD- Totemahonal Bant for RoconseKone
Deelapmet
Ponidi ng loor to g vernment for healt
edueaio1intashuchr, ete.
(2) DA - Coons to less dleeloped cCanies CLD)
(3) IF Loans to corporates who want to cehep
tter plont
MIIA - Aets ike nsuTone 4gainsL
at poliheat
alsoo ciated wn LDCs to proteet
cross Lordes mvestments.

QIo Tont Venture and MA

Toint ventureis
leag deAm coatzachual agzeement betaween two
moe parhesto
i ndotake mutualy beneheial economie

eEE Exercise 'jomt contsol

Ci) onbiaute equity and share the p s
logs es of the entity
Marut Suzuki Hero Honda, Wall mot - Aipkar
nwhich Ws reommended.
L Condition
uneconomicaor
Owhen an
o1ganteeton to
achuityolo alone
LbuwireAs
when istinchie competenee o tu
two Y

ogenizohiong Can be bovgut togtu

Many hundles sueh impo quotas, donft, atc
 Oiecbnolegy Rist 2 Copited slorig
feonaply
Rogdohn
S) Inelle chual Excong

M2A :
Megr- Tntegrahon od to indepeudad os.
0Mene

2
Martel Ent
ossesin o Moketng insostuchueo Sorps fuly
Acey Eonomie
Divesicahy Hosizomad yestial Integahion
’Enbykogepox-lased BegFaists
’ Enty to | counhdes nauding china
O Honzontat Menges - Poth copanies pdcig si
s. E. Dsneyt Hostay.
Vehc le Merges - One cowpany is
S e y to t otter
coMpouy . E EbeveBoy and Pay
Qcowmre
Concentic Menges- Some indusby but dHennt
podu c .Eg Repsco mengd wth hogi

buisss.
OFnanetal Boblemy
OAleg wth producs, problem aso get Coi
OWrong Acqishion Dieis oy
 fefTtrat ]ade Aren (TA)
Ls Denihon:
opeement between
Regional
ups
ntegph
onbie
cdice ulhmnatdy SMOe tantAontom fibaes
to n foudslsenicsbtueen then
E Lenele Ragional Inteqyaio n
) Be feyeial Trade Area CA)
Înh-un hrad btw menben counies will hom
lower tayfs compored exta re tada
fee Trads Aea cFTA) -
betwen
No tariA betve mee countres. Memyer coutes

spply ss own

Oushomy Union CcU )

Common eotennal taDt
FTA ules but
non -memser counte
ommoM Maeet ecM)
Fee movemento captd, laboY lothe facto
ducton Hosmorzan dAseal & monety pohcoes.
es
OEoomic nton (EU)
Common Cumene4
manOono

labov.
poly
Freelom ods,senees apfat
Eongnie Integatn
-yenoval of ell barses

Q12) what are The cdvantages a disadvantage of MNCs

Advantogey: to Host Counhy:
Nobm Inome OFmploy ment ‘
nreshnent Employmen7 G Compeiveeis ‘
Tsode Dekeit
)Technolegy hansfemed bontu derebpg counpits
 L Advantage
to tome (ounh
DomesHe fm Can
Balonee d pymet immpned by aomi Forex

O M(ong M, fore Yedue

loss conbuhoy o 5ubli eenve,
local skille ae not doeloped.
Tme in eyality iss wdaned deued.
opitt-intesle Create inappopriate onsumpion patter
Dse Ecoromíc Power to inuence gov poh cres
O Doesie
Entepreneip is supprtsed
S13 Jhat îs FDT why Indta is the ideal desinahn
L> fortim Direel Dmesthment CFDI)
fnanee,Techniea,e. Forign
LnvesFmen
EnhtyA company
CountyA
Ownersniol Conol

De.
Tech. Tronster Ineowe Genenatoy
Emplyme Bemfu

Reasovs for India being elaal foY For

Lasg &Cooig Martet
Dengrnphic Divdord
Supptive Crov. Inihahe e FDI folicic
4"Mate in Jndia" iniha Dene.

Teeh IT hwmy
A
Q Exlain Anti-Dunapiag Paliy
Poliuy wth exepe
L> Dumpinq
cd 9nenyexpning
Manufaceyadne
lo we
it poduck
ra fe

prie + change n home oUntay,

for cumping
the mate
marte shae
Elmtmay competi hoy
Anti-dummping folby LDuty e produck
An mped duyclged k
upeclosex toe hemal
er

imdsy
Ctdit, What the documeus
sI Detfine Letter of
reuired in honou
hoyourig
A letterGomahank. aranteeing that
buyer Payment to
and foY the amout.

Pegves Le
Buyer)Pagpena Aduis
Bane
Sella)
Docs.
CBaL).
mert

Docts Bant

Dcumeuy reined Qfacki'ng list

Quality Bol

Popomna Iwoee
si Factsinflueng Exchang
Demerd Supply ot teriga
(opitad Noeuts
Po lt-eot Cordihurs
Mate fac tos.
Inflahon

neome
facto