EXAM 2018

1. What is the push factor leading to internationalization?

i. Technological revolution
ii. Domestic recession
iii. Competition as driving force
iv. Government policies and regulations
v. Improving image of the companies
2. What is dumping policy?
 Dumping policy is the act of charging a lower price for the like product in a foreign market than
the normal value of the product. The biggest advantage of dumping is the ability to flood a
market with product prices that are often considered unfair.
3. What is cultural globalization?
 Cultural globalization refers to the process by which one culture's experiences, values, and ideas
are disseminated throughout the world through various means. It involves the spread of
language, the arts, food, business ideas, and technology, and therefore, its impact is felt by
almost everybody in the world.
4. Define voluntary export restraint.
 VER is a type of import quota imposed by the exporting nation typically at the request of the
importing country’s governments. An agreement between two countries that limits the number
of goods of a particular type that one of the countries can sell to the other. For example;
Voluntary export restrictions remain on Japan's car exports to the European Union.
5. What is pluralistic political ideology?
 Pluralistic political ideology is the recognition and affirmation of diversity within a political body,
which permits the peaceful coexistence of different interests, convictions, and lifestyles.
Pluralism assumes that diversity is beneficial to society and that autonomy should be enjoyed by
disparate functional or cultural groups within a society, including religious groups, trade unions,
professional organizations, and ethnic minorities.
6. Define centralized democracy?
 Centralized democracy is a principle of Communist party organization by which members take
part in policy discussions and elections at all levels but must follow decisions made at higher
levels. It holds absolute supremacy over a unitary state.
7. What is revolutionary democracy?
 A revolutionary democracy is a political science term denoting a revolution in which a
democracy is instituted, replacing a previous non-democratic government, or in which
revolutionary change is brought about through democratic means, usually without violence. For
example; The 1990 People's Movement was a multiparty movement in Nepal that brought an
end to absolute monarchy and the beginning of constitutional democracy.
8. Define common law.
 Common law is a term used to refer to law that is developed through decisions of the court,
rather than by relying solely on statutes or regulations. Also known as “case law,” or “case
precedent,” common law provides a contextual background for many legal concepts. The goal of
common law is to establish consistent outcomes by applying the same standards of
interpretation.
9. What is macro political risk?

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  Macro political risk is the action that affect a broad spectrum of foreign investors in regard to
international business. Examples of macro risks include the possibilities that a nation could raise
taxes, fall into civil war or devalue its currency.
10. Define countervailing duty.
 Countervailing duties (CVDs), also known as anti-subsidy duties, are trade import duties
imposed under World Trade Organization (WTO) rules to neutralize the negative effects of
subsidies. CVDs are meant to level the playing field between domestic producers of a product
and foreign producers of the same product who can afford to sell it at a lower price because of
the subsidy they receive from their government.

Exam 2018 (make-up)

1. State different forms of globalization.

i. Economic globalization
ii. Political globalization
iii. Socio-cultural globalization
iv. Natural/environmental globalization
v. Technological globalization
2. What is major focus of the theory of competitive advantage?
i. Cost focus: firm seeks a cost advantage in its target segment. It exploits differences in cost
behavior in some segments
ii. Differentiation focus: firm seeks differentiation in its target segment. It exploits the special
needs of buyers in certain segments.
3. Define political risk.
 Political risk can be termed as the risk that occurs because of political instability. Political risk is a
type of risk faced by investors, corporations, and governments that political decisions, events, or
conditions will significantly affect the profitability of a business actor or the expected value of a
given economic action.
4. Why culture matters in international business?
i. Varying communications implications
ii. Varying impact or social behaviors on IB
iii. Impact of social behaviors on business negotiations
iv. Varying CSR and ethical standards
v. Varying customer reactions to marketing.
5. State any two objectives of IBRD.
i. Assisting reconstruction and development of member countries by facilitating investment of
capital for productive purposes.
ii. To induce long-run capital investment for assuring Balance of Payments (BoP) equilibrium and
balanced development of international trade.
iii. To promote foreign investment and supplement private investment.
6. List any two specific functions of BIMSTEC.
i. To administer and implement agreements reached by member countries, e.g. FTA (free trade
area) agreement.
ii. To act as a forum for cooperation among member countries in specified areas.

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 iii. To provide cooperation to one another among members.
7. What are currency swaps in foreign exchange?
 A currency swaps are “contract to exchange at an agreed future date principal amounts in two
different currencies at a conversion rate agreed at the outset”. The parties involved in currency
swaps are generally financial institutions that either act on their own or as an agent for a non-
financial corporation. The purpose of a currency swap is to hedge exposure to exchange rate risk
or reduce the cost of borrowing a foreign currency.
8. What are the factors affecting international strategy?
 Language  Politics  Culture  Economy

 Market Research  Financing  Advertising

9. What are the two doctrines of international trade?

i. Interventionist Doctrine: mercantilism and laissez Faire
ii. Theories related to free-trade: Absolute advantage theory and comparative advantage theory
10. Why the US dollar is called a ‘reserve currency’?
 US dollar is called a ‘reserve currency’ because it is widely traded and held by many central
banks around the world. US dollar is the most important and widely used currency unit.
*[People who live in a country that issues a reserve currency can purchase imports and borrow across
borders more cheaply than people in other nations because they do not need to exchange their currency
to do so.]

Exam 2017

1. State any three challenges of international business.

i. Foreign laws and regulations
ii. Communication difficulties and cultural differences
iii. Political risks
iv. Currency rates
2. What is the assumption of mercantilism theory?
 According to mercantilism, countries should export more than what they import. Countries
focused on accumulation of gold through more exports; so they discouraged and even ‘almost’
banned imports.
3. Define Dumning’s eclectic theory.
 Dumning’s eclectic theory states that form goes abroad for investment due to the following
three OLI advantages:
i. Ownership specific advantages
ii. Location specific advantages
iii. Internalization advantages
4. Identify the main cause of political risk.
 Political instability
 Fractionalization by language, ethnic &/or religious groups& the power of these factors.
 Negative influences of regional political force.

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  Restrictive measures required to retain power.
5. Point out the advantages of floating exchange rate system.
i. No need for international management of exchange rates (like IMF)
ii. No need for frequent central bank intervention
iii. Correction of balance of payments deficits
iv. No need to keep large foreign currency reserves
6. Mention the benefits of franchising to the franchisor.
i. Franchising is the strategy whereby the franchisor gives the franchisee the right to use its brand
name and all related trademarks in return for royalties.
ii. Limited financial commitment
iii. Involves longer term commitment than licensing. Primarily used by services firms like
McDonalds
7. What are the various models of payment in international trade?
i. Advance cash payment
ii. Letter of credit
iii. Open account
iv. Counter-trade
8. What factors would you consider to choose location for global production?
i. Country factors: factor costs, political economy…….
ii. Technological factors: FC of setting up production facilities…..
iii. Product factors
9. Define e-marketing strategy.
 E-marketing is the marketing that uses electronic means and methods to conduct marketing
activities such as buying, selling, and distributing goods and delivering services in the global
market places. E-marketing strategy focuses to identify goals, target groups, formulating
message/story, identify parameter for measuring, and choose media, tools and services.
10. Point out the techniques that can be used to prepare employees for repatriation.
i. Counselling
ii. Monitoring compensation and career path
iii. Interim financial support

EXAM- 2016

1. Define globalization and state its two main drivers.

 In IB, globalization may be defined as the process of integration of national economies and
businesses into the global factors of production including capital, goods, technology, and most
importantly, labor.
i. Crisis in capitalism
ii. Technological advances
2. Write down the gist of factor endowment theory of international trade.

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  Factor endowment refers to how much factor of production a country has been endowed with
by the Mother Nature. It holds that factors in relative abundance are cheaper than factors in
relative scarcity.
3. Define intellectual property rights.
 Intellectual property rights are the rights given to persons over the creations of their minds.
They usually give the creator an exclusive right over the use of his/her creation for a certain
period of time. Rights related to copyright and industrial property.
4. Differentiate between a custom union and economic union in the context of regional trading
block.
Custom union Economic union
Harmonization of their external trade policies Greater economic harmonization through the
through the common tariff & nontariff barriers adoption of common economic policies (trade,
on imports from non-member countries. fiscal, monetary).
Major trading groups are MERCOSUR, NAFTA Major trading groups are European union (EU)

5. What is the difference between joint venture and strategic alliance in the context of global
entry strategies?

Joint venture Strategic alliances

JV is a collaborative arrangement between SA is the collaboration of two or more firms to
unrelated parties or firms which exchange or follow any specific strategy.
combine various sources while remaining
separate & independent legal entities or
organizations.
Reason for creating JV is to benefits from Reason for creating SA is to protect the concerned
local partner’s knowledge of competitive companies from political and economic risks.
conditions, culture, language, political system
and business system.
For e.g. nestle and general mills For e.g. IBM, Toshiba have SA.

6. State the various sources of funds for international operations.

i. Commercial banks
ii. International agencies and development banks
iii. International capital markets
iv. Government grants and subsidies
7. Differentiate between retail concentration and retail fragmentation in the context of
international distribution strategies.
Retail concentration Retail fragmentation
In a concentrated retail system, a few In a fragmented retail system there are many
retailers supply most of the market which is retailers, no one of which has a major share
common in developed countries of the market which is common in
developing countries
Direct distribution is practical Direct sale is to be impractical.

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 8. What is the use of letter of credit in the international trade?
 L/C is used in the international trade for the payment from the importer to the exporter upon
receipt of an export shipment by the contract between the banks of an importer and an
exporter. It is highly secure as the payment is managed through the banking system which is
reliable and highly trusted in the business circles.
9. What was the main reason for establishing BRICS (Brazil, Russia, India, China and South
Africa) founded on June 2006 group of co-operation?
i. To grow faster than the developed countries and to play an increasingly important role in the
world.
ii. To increase productivity resulting in more attractive prices.

Exam 2015

1. Name any three characteristics of international business.

i. Large scale operations
ii. Integration of economies of many countries
iii. Keen competition
iv. Dominated by developed countries and MNCs
2. State three reasons for a global company to analyze political environment of the host
country.
i. To understand the political ideologies and constitution
ii. Identifying the political risks
iii. To cope with government rules and regulation
iv. Examining the political stability and management
3. Write any four reasons why organizations go international.
i. Taking comparative/competitive advantage of business
ii. Matching with consumer pressures
iii. Managing and escaping competition
iv. Benefitting from IPLC
v. Geographic diversification
4. List four major objectives of foreign direct investment.
i. Sustaining a high level of investment
ii. Development of basic economic infrastructure
iii. Sales expansion
iv. Diversification
v. Resource acquisition
5. Name the different institutions of World Bank group.
i. IBRD (International Bank for Reconstruction And Development)
ii. IDA (International Development Association)
iii. IFC (International Finance Corporation)
iv. MIGA (Multilateral Investment Guarantee Agency)
v. ICSID (International Center for Settlement of Investment Disputes)

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 6. Mention any three roles of IMF at present.
i. Role of a development lender
ii. Role of a market borrower
iii. Role in Consultation and guidance
7. Write any three challenges that WTO may create to a developing country like Nepal.
i. Constraints and challenges: erosion of tariff preferences
ii. Threat to domestic industry from free imports
iii. Revenue loss to government
iv. Employment and BoP implications
v. Bio-diversity protection

8. Mention the four major factors determining the choice of global market.
i. Market size and growth
ii. Government regulation
iii. Physical infrastructure
iv. Level of risk
v. Nature of competition

Exam 2014

1. List out any two threats from multinational companies.

i. Competitive advantage
ii. Currency risk
iii. Environmental problems
iv. Cultural risk
2. Give full forms of the APEC and OTC (of foreign exchange market)
i. APEC = Asian Pacific Economic Cooperation
ii. OTC = Over-the-Counter
3. List out any two characteristics of mixed economy.
i. Ownership of goods by both private and government/state-owned entities. (Co-existence of
the Private and Public Sectors)
ii. Planned Economy
iii. Complete Economic Freedom
iv. Provision of Social Security
4. Differentiate cultural polycentrism from ethnocentrism.
Polycentrism Ethnocentrism
It is the management orientation that fully It is the management orientation believe that
adapts the business practices to the foreign what worked at home should work abroad and
country’s local cultures wherever it operates; it hence ignores environmental differences.
carries no home-country culture.
Company uses a country-specific business and Company uses the same products and marketing
marketing strategy for successfully developing strategy in each country as it does in its home
and building its presence in each country it country.
expands to.

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 Exam 2013

1. Distinguish between globalization and international business.

Globalization International business
Globalization may be defined as the process International business refers to the trade of
of integration of national economies and goods, services, technology, capital and/or
businesses into the global factors of knowledge across national borders and at a
production. global or transnational level.
National boundaries assume no important National boundaries are important, though
role goods are sold in foreign markets, by
internationalizing the firm’s business.
Globalization of markets results into Without globalization, international business
internationalization of firms. cannot exist.

2. Write down the prime objectives of TRIPS (Trade-Related Aspects of Intellectual Property
Rights) as per the convention of the WTO?
i. To promote IP protection worldwide and reduce trade distortions.
ii. To establish a mutually supportive relationship between the WTO and WIPO.
iii. To promote technological innovation and technology transfer.
3. What is SAFTA?
 SAFTA is the special trade and investment arrangement of the SAARC. It is an initiative to
establish a free trade area in the south Asian region by reducing tariff and non-tariff barriers in
the intra-regional trade that accelerate regional trade and cooperation. The Agreement on the
SAFTA was signed at the 12th SAARC summit in January 2004.
4. What do you know about franchising?
 Franchising is a specialized form of licensing in which the franchisor not only sells intangible
property to the franchisee but also operationally assists the business on a continuing basis,
such as through sales promotion, human resource training and management development. For
example; KFC, Domino’s Pizza etc.
5. Write down two differences between fixed exchange rate and floating exchange systems in
the context of Forex trading.
Fixed exchange rate system Floating exchange rate system
It is the system or theory that maintains the It is the system in which governments do not
forex rate at a fixed level through make any systematic intervention, and each
government participation in the market. nation’s currency floats independently,
according to market forces.
Imposes responsibility on government Partial automatic correction for a current
policies. account deficit.
It encourages venture capital in international It discourages venture capital in international
money market. It ensures stability. money market. It causes instability.

6. List down any two means of transition to market economy from planned economy.
i. Privatization of state-owned industries iv. Liberalization of Trade
ii. Removal of price controls
iii. Removal of tariff barriers

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 Exam 2012

1. Mention any two prime features of strategic alliance of global entry strategies.
i. Each strategic alliance may be formed by several companies collaborating to create a new “Go
to Market” product and/or service.
ii. Flexibility in establishing and operating any partnering arrangement is of paramount
importance.
2. List the various levels of regional economic integration.

preferntial political-
free trade customs common economic
trading economic
area (FTA) union market union
area (PTA) union

3. Write down the benefit and limitation of euro zone of EU.

 Advantages: more price transparency, increase in foreign investment (low interest rates), and
competitive advantage.
 Disadvantages: loss of national sovereignty, cost of introducing the currency.
4. Mention any two objectives for which exchange control mechanism is followed by nation.
i. Correcting Balance of Payments
ii. To Protect Domestic Industries
iii. To Maintain an Overvalued Rate of Exchange
iv. To stabilize the exchange rates
5. Mention any four diversified MNCs operating at present.
i. Unilever
ii. Dabur
iii. Coca-Cola
iv. Pepsi
v. Samsung
6. Mention any two distinguishing factors between EU and SAFTA.
European union (EU) SAFTA- South Asian Free Trade Area
The European Union is a political and Initiative to establish free trade area in the
economic union of 28 member states that south Asian region by reduction of tariff and
are located primarily in Europe. non- tariff barriers.
EU has single currency. All the nations of EU Each and every country has its own currency.
are well developed economies All countries of SAFTA are developing
countries.

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 Exam 2011

1. List down two arguments each for and against globalization.

 Arguments for globalization:
i. Globalization is expected to promote efficiency, productivity and, hence, higher economic
growth rate.
ii. Foreign capital is attracted.
iii. Quality improvement and price reduction
 Arguments against globalization:
i. Distorts production structure of an economy.
ii. It has made the rich richer while making the non-rich poorer.
iii. Globalization has led to exploitation of labor, there is also an increase in human trafficking.
2. What is turnkey operation? State its two features.
 Turnkey operation is a project in which a firm agrees to set up an operating plant for a foreign
client and hand over the ‘key’ when the plant is fully operational.
i. Less risky than FDI in countries with unstable political and economic environment.
ii. Means of exporting process technology
3. Mention any two strategies to deal with cultural differences across the nations.
i. Harmonizing cross-cultural behaviors
ii. Making communications effective
iii. Managing ‘culture shock’
iv. Managing company and management orientations.
4. List down any four components of political risk.
i. Government takeover of corporate assets
ii. Operational restrictions
iii. Agitation, war, armed conflict and violence
iv. Blockage of funds
5. Mention the major role played by IMF under Bretton Woods System of exchange rate.
 To provide a pool of foreign currencies from its member states that would be used to smooth
out trade imbalances between countries, thereby promoting a structured growth in world
trade and encouraging exchange rate stability.
6. Mention the fundamental aspect of determining exchange rate under floating system.
i. Demand and supply interactions of currencies.
ii. Central bank intervention
7. Which agency of World Bank is more beneficial to the country like Nepal?
 International Development Association (IDA)
*[ Received credit facilities for telecommunication, transportation, transit, irrigation, drinking water and
sewerage, electricity, rural and forest development, tourism, cottage industry, etc.]

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 Exam 2010

1. Write down any two events that are related to current world economic scenario.
i. A US – China war on trade
ii. A new Eurozone crisis
iii. A NAFTA exit
2. State any two objectives of ADB.
i. Reducing poverty in the Asian continent
ii. Promoting economic growth
iii. Supporting human development
iv. Improving the status of women.
3. Distinguish between Tariff and non-tariff barrier.
Tariff barrier Non-tariff barrier
It ensure revenue for the government. It do not bring any revenue. Import licenses
Import duties and official prices are types of and import quotas are some non-tariff
tariff. barrier
There is increase in the price of imported There is no change in the price of imported
goods goods
Tariff is less effective because the demand Non-tariff is more effective as a protective
for imported goods is generally price measure.
inelastic.

4. Provide the major reason for failure of gold standard in the forex system.
 A gold standard is a monetary system where gold is used to measure the value of goods,
services or investments in an economy.
Major reason for its failure:
i. Violation of rules of gold standard
ii. Restrictions on free trade
iii. Unbalanced distribution of gold
iv. Lack of cooperation among participating countries
5. What is meant by exclusive distributors in the context of international business?
 Exclusive distributors is one using a specific channel exclusively for a given product that is
difficult for outsiders to excess. It is an agreement between a supplier and a retailer granting
the retailer exclusive rights within a specific geographical area to carry the supplier's product.
6. Mention any two objectives of formation of WTO.
i. Raising standard of living
ii. Ensuring full employment
iii. Increasing income
iv. Protecting environment

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 Exam 2009

1.State any two challenges that the MNCs are facing at present to manage global recession.
i.
Energy and Environmental Security
ii.
Market segmentation
iii.
Global health crisis
iv.Competing in a New Era of Globalization
2.Point out why is China marked as a country with two system?
 China is marked as a country with two system for the reunification of China during the early
1980s. ………….. …………… ………
3. Specify any two factors distinguish between options and futures in the context of forex
instrument.
Options Futures
An option gives the buyer the right, but not A futures contract gives the buyer the
the obligation, to buy (or sell) a certain asset obligation to purchase a specific asset, and
at a specific price at any time during the life the seller to sell and deliver that asset at a
of the contract. specific future date unless the holder's
position is closed prior to expiration.
Paid in the form of premiums. No advance payment

4. How does the subsidies can influence the international trade? Provide any three factors.
i. Subsidies make the product cheaper or more profitable for domestic firms to sell overseas.
ii. Rise in competition
iii. Increasing Production and Consumption
5. State any two distinctions between custom union and free area trade.
Customs union Free trade area
Common tariff and non-tariff barriers on Eliminating all tariffs and other barriers to
imports from non-member countries. trade in products and services within the
Elimination of all internal tariffs within the bloc. Each member country maintains its
region. own external tariff against non – FTA
countries.
SAFTA, BIMSTEC-FTA are some trading SAFTA, BIMSTEC-FTA are some trading
groups. MERCOSUR, CACM are some trading groups.
groups

6. Give any two features of sole distributor.

i. No any competition
ii. localization
7. List any three components of global marketing information system.
i. Internal record
ii. Marketing intelligence system (sales force, distributors, retailers, external networking etc.)
iii. Marketing decision support system
iv. Marketing research

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 8. Specify any two market entry mechanism for a global company.
i. Trade mode: Exporting & importing and counter trade
ii. Collaborative ventures and strategic alliances
iii. Licensing and franchising

Exam 2008
1. List the major opportunities for international business.
i. Export and import
ii. Outsourcing
iii. Licensing and Franchising
iv. Foreign Direct Investment and Subsidiaries
2. What is global functional structure of MNC?
 International Functional structure of Multinational Enterprises, involve grouping together
functionally like-activities along functional lines like marketing, R&D, production, etc. and
place them under specialist classes of personnel. This structure is suited for globalized firms,
providing further synergies of specialization. The structure is simple and clear, making
communication lines distinct and direct.
3. What is the difference between ad valorem duty and specific duty?

Ad valorem duty “according to value” Specific duty

It is an import duty levied as a percentage of the It is a fixed sum of money levied on a physical
invoice value of imported goods, usually on unit of an imported product; like weight, gauge,
rupees and dollars. or other measure of quantity.
It is the import-value based. It is import-quantity based

4. Write down three main features of democratic political system.

i. Freedom of speech, free press and freedom to organize.
ii. Good governance
iii. Rule by consent
iv. Majority rules
5. Give the concept of social stratification as a behavioral practice affecting business.
 Social stratification refers to a society’s categorization of its people into rankings of
socioeconomic tiers based on factors like wealth, income, race, education, and power. It
significantly affects consumer preferences and buying behaviors that ultimately hampers in
business operation.
6. Define labor force mobility.
 The labor force is the number of people who are employed plus the unemployed who are
looking for work.
 Labor force mobility refers to the ease with which laborers are able to move around within an
economy and between different economies. It is an important factor in the study of
economics because it looks at how labor, one of the major factors of production, affects
growth and production.

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 7. List four indicators you would develop and analyze for studying potential for your products
in a foreign market.
i. Find cross-border customers.
ii. Establish a direct or indirect method of export.
iii. Set up terms, conditions and other financing options.
iv. Level of risk

Exam 2007

1. Sketch the matrix structure often used by multinational companies.

2. Enlist any four functions of the international finance corporation (IFC).

i. Invests in private enterprises in member countries in association with private investors and
without government guarantee, in case where sufficient private capital is not available on
reasonable terms.
ii. Seeks to bring together investment opportunities, private capital of both foreign and domestic
origin, and experienced management.
3. State any three features of an economic union.
i. Co-ordinated, harmonized fiscal and monetary policies.
ii. Single currency
iii. Uniform monetary system with one central bank, and union of regulating authorities
4. State any three characteristics of foreign exchange market.
i. Market for trading forex instruments
ii. Remarkable market for size, composition and location
iii. Wide use and dominance of US dollars.
5. List the major current trends of democratization in world political scenario.
i. Widespread democratization (with adoption of multiparty democratic system.)
ii. Pluralistic form of democracy
iii. Recognition and incorporation of human rights
iv. Erosion of communist/centralized systems.

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 6. State the factors influencing the competitive environment.
i. Rate of Market Growth
ii. Exit Barriers
iii. Customer expectations
iv. Quality of product/services
7. What are the basic features of polycentric approach? List any four of them.
i. The hiring of locals or the nationals of the host country is comparatively less expensive.
ii. Better productivity due to better knowledge about the host market.
iii. Better government support.
iv. Chances of success are high.

NCC-2019

1. State any four factors affecting globalization.

i. Expansion of technology
ii. Liberalization of economies and cross-border trade
iii. Cost concerns
iv. Growing consumer pressures
2. Distinguish between domestic and international business.
Domestic business International business
A business is said to be domestic, when International business is one which is
its economic transactions are conducted engaged in economic transaction with
within the geographical boundaries of several countries in the world.
the country.
Business research can be conducted It is difficult to conduct research.
easily.
Deals in Single currency Deals in Multiple currencies

3. Who is the profounder of theory of absolute advantage and what is its essence?
 Adam smith
 A country’s wealth is based on its available goods, and services rather than gold. This
theory prescribes a country to specialize in those products that would give it a
competitive advantage.
4. Write the main theme of market imperfection theory of FDI.
 Market imperfections theory is a trade theory that arises from international markets
where perfect competition doesn't exist.
 The market imperfections theory states that firms constantly seek market
opportunities and their decision to invest overseas is explained as a strategy to
capitalize on certain capabilities not shared by competitors in foreign countries.
 Market imperfection theory is based on facts that everyone does not have the same
homogenous expectations, there are no unlimited buyers and sellers, nor does
everyone have the same information. It assumes there is no perfect competition.

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 5.
What are the cultural factors that affect international business?
i.
Fashion trends,
ii.
Lifestyle
iii.
Social media influence (blogging, etc.) vs traditional media (press, TV, radio),
iv.
Dominant communication technology in social groups,
v.
Participation in cultural events,
vi.
Willingness to pay for tickets,
vii.
Popular actors, music styles, design forms, etc.
viii.
Creativity of people
6.
Define the meaning of ‘expatriation and repatriation’ of employees.
The selected employees are placed for foreign assignments; sending managers or
employees for foreign assignments is known as expatriation.
 Repatriation is the process of returning an asset, an item of symbolic value or a person
– voluntarily or forcibly – to its owner or their place of origin or citizenship.

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