Shivani School of Business Management

BA 9209 International Business Management

2 Marks 1) Define international trade International business consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals and organization. 2) What is trade flow? Trade flow refers to the flow of goods and services across the globe through commercial transaction. 3) What is investment flow? Flow of capital across the globe. 4) What is free trade? There is no restriction in export and import of goods and services. 5) What is trade? Trade refers to the flow of goods and services. 6) What is internal trade? Trade within the nation is known as internal trade. 7) Write down the various names of internal trade? Domestic trade, regional trade. 8) What is international trade? Trade with outside the nation. 9) Write down various names of international trade? Foreign trade, interregional trade. 10) What do you mean by absolute cost advantage theory? This theory suggest that a country produce and export those goods and services for which it is more efficient than countries. 11) What do you mean by comparative cost theory? This theory states that a country should produce and export those goods and services for which other country are relatively more efficient than it 12) What do you mean by heckser ohlein theory? This theory presents that international trade occurs because of the differences in the supply of production factors. 13) Write down some important non-ownership forms? Merchandize export, import and counter trade, service export and import licensing and franchising, contract manufacturing, turnkey operations and management control. 14) What is licensing? Licensing means a firm in one country permits a firm in another country to use its intellectual property. 15) What is counter trade? Counter trade is used as an entry strategy. 16) What is contract manufacturing? Under contract manufacturing a company doing international marketing contract with firms in foreign countries to manufacture or assemble the products while retaining the responsibility of marketing the product. 17) What are turnkey contracts? Turnkey operation is an agreement by the seller to supply a buyer with a facility fully equipped and ready to be operated by the buyer's personnel, who will be trained by the seller. 18) What is strategic alliance? This strategy seeks to enhance the long term competitive advantage of the firm by forming alliance with its competitors existing or potential in critical areas instead of competing with each other. 1| B.Nar ayanan, Assi stant Professor

Shivani School of Business Management

BA 9209 International Business Management

19) What do you mean by Export Credit Guarantee services? This guarantee scheme was established by the Govt. of India in 1957 to promote the export. 20) What is exchange rate? The exchange rate is the rate at which the value of one currency is expressed in terms of the value of another currency. 21) What are the various documents needed for export by ships? Shipping Bill, Commercial invoice, Bill of lading. 22) What are the various documents needed for export by post? Customs declaration form, customs invoice, certified invoice, black list certificate. 23) Write down the currency codes of Japan and Canada. Japan = JPY Canada = CAD 24) What is merchant deals market? Dealings between authorized dealers and others. 25) What is wholesale market? Large scale foreign exchange dealings are done in this market. 26) What is retail market? Small foreign exchange dealings are done in this market. 27) What is spot market? Spot market is market for delivery normally two days after the deal. 28) What is Forward market? Forward market is a market for future delivery. 29) What is arbitrage market? Buying in one market and selling the same in another market to earn profit. 30) What is swaps market? Swaps deal involve temporary exchange, with agreement to reserve back to original situation. 31) What is direct rate? Unit of home currency per unit of foreign currency. 32) What is indirect rate? Units of foreign Currency per unit of home currency. 33) What is Bid rate? The buying rate is called bid rate. 34) What are Ask rates? The selling rate is called Ask rate. 35) What is spot rate? Spot market in foreign exchange refers to buying and selling foreign exchange. 36) What is Forward exchange rate? Forward market in foreign exchange refers to transaction which are performed at a future period. 37) What do you mean by Single exchange rate? Single rate refers to adopting one rate between countries. 38) Flexible exchange rate - Explain Exchange rate is fixed over a short period but change in the long period due to change in demand and supply. 39) What does Mint Parity Theory mean? Exchange rate is determined by the gold contents of the two currencies.
2| B.Nar ayanan, Assi stant Professor

Shivani School of Business Management

BA 9209 International Business Management

40) What does purchasing power parity theory mean? External value of a currency is determined on the basis of its internal value. 41) Define globalization The growing economic inter dependence of the countries worldwide through increasing volume and variety of gross border transaction. 42) What is external environment? It refers to the internal and internal Factors. 43) What is inflation? A rise in price is known as inflation. 44) What is fiscal policy? Fiscal policy refers to the overall effect of the budget outcomes on economic activity. 45) What is pluralism? Pluralism involves co-existence of different ideas, aims and means. 46) What is totalitarianism? Only one ideas aims and means. 47) What do you mean by Democracy? Mix of pluralism and totalitarianism. 48) What is capitalism? It is otherwise called as free enterprise economy. 49) What is communism? Production, distribution, Exchange and consumption all are state owned. 50) What is mixed economy? Public and Private enterprise exist. 51) Define- Culture The complex whole which includes knowledge, belief, art, morals, law, custom and any other capabilities and habits acquired by man as a member of society. 52) Define organization culture? Organization culture is the sum total of beliefs, styles, values and symbols. 53) What do you mean by Work culture? It refers to the kind of commitment to work. 54) What is leadership culture? It refers to the kind of leader their vision and mission. 55) What is structural culture? It designs nature of flow of authority and responsibility. 56) What is relationship culture? It refers to maintaining long term relationship. 57) Write down few names of regional trade associations. NAFTA, EU, LAFTA, CEEAS. 58) What is the main aim of trade blocks? Free trade among members. 59) What is Inter-region trade? It refers to trade between two or more regional groups. 60) Define - Globalization The growing economic inter dependence of the countries worldwide through increasing volume and variety of cross border transaction in goods and services and of international Capital flow.
3| B.Nar ayanan, Assi stant Professor

Shivani School of Business Management

BA 9209 International Business Management

61) What is control? Control is some sort of systematic effort to compare current performance. 62) Define-Control Control is checking current performance against pre determined standards contained in the plans, with a view to ensure adequate progress. 63) What is information? Information is data plus relevance. 64) Write down some important non financial indicator. Manufacturing and production, sales and marketing. 65) What is evaluation? Evaluation is the comparison of actual progress. 66) What is quantitative evaluation? It includes number of offerings, amount of goods and bad outcome. 67) What is qualitative evaluation? It includes the contents, quality and relevance of the programme. 68) What is formative evaluation? It is needed if safety concern arises. 69) What is financial benchmarking? It performs a financial analysis and comparing the results in an effort to asses one's overall competitiveness. 70) What is performance benchmarking? It allows the initiator firm to access their competitive position. 71) What is functional benchmarking? It helps to improve the particular functions of benchmarking. 72) What is budget? Budget is a pre determined detailed plan of action. 73) What is budgetary control? When a budget is used as a control it is known as budgetary control. 74) What is conflict? It is disagreement through which the parties involved perceive at threat to their needs, interests or concerns. 75) What is internal Conflict? Conflict within the organization is known as internal conflict. 76) What is external conflict? Conflict between two or more organization is known as external conflict. 77) Write down some important factors causing conflict. Structural factor, specialisation, Goal differences. 78) Write down some important personal factors causing conflict. Misunderstanding, Selfishness, etc. 79) Write down some important conflict resolution action. In organization side, we use compromise, collaboration,etc. 80) Write down basic elements of negotiation. The process, behavior and substance. 81) Write down the name of international agencies in conflict resolution. International Finance Corporation, Multilateral Investment Guarantee Agency.
4| B.Nar ayanan, Assi stant Professor

Shivani School of Business Management

BA 9209 International Business Management

82) Write down the aim of trade blocks. Free trade among members. 83) Write down the modes of entry. Export, licensing, joint venture. 84) What are the various factors help to turn international? Higher profit opportunities, Better products. 85) What is the role of OPEC? Stabilize price of petroleum, fixing the price of petroleum. 86) What is benchmarking in global Competitiveness? World class performers, adopting best practices. 87) Write down WTO objectives To provide trade review mechanism. 88) Explain TRIPS Trade related aspects of intellectual property rights. IPR= Information with commercial value divided into industrial property. 89) What is renegotiation? Use of more local management, additional import and export of raw materials. 90) Write down the types of organizational structure in international business. Domestic, export, International. 91) What is GATS? General Agreement on Trade in Services rules for multilateral, legally enforceable rules. 92) What are trade blocks? Trade blocks are the regional trade agreement zone having provisions for common international trading activities. 93) What is trans National Corporation? It has the criterion of having no principal domicile, no one central source of power. 94) Write down the indicators for global business environment? They are market potential, in fracture and product design. 95) Write down the use of counter trade? It is important for developing countries because inadequate market access for their exports debt burden. 96) What is free trade? There is no restriction for the flow of goods and services between the nations. 97) What is capitalism? Capitalism refers to the free enterprise economy. 98) What is mixed economy? Private and public enterprises are existing. 99) What is economic environment? It refers to internal and external factors. 100) What is inflation? A rise in price is known as inflation.

5| B.Nar ayanan, Assi stant Professor