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Q.1 Write down the difference between international Vs global business? And
what are the benefits of globalization?
Answer. Most of us assume that international and global business are the same and
that any company that deals with another country for its business is an international
or global company. In fact, there is a considerable difference between the two terms.
International Companies: Companies that deal with foreign companies for their
business are considered as international companies. They can be exporters or
importers who may not have any investments in any other country, apart from their
home country.
Global Companies: Companies, which invest in other countries for business and
also operates from other countries, are considered as global companies. They have
multiple manufacturing plants across the globe, catering to multiple markets.
Differences between International and Global Strategies
Strategy
Location
International
Selected target countries and
trading areas
Global
Most global businesses operate in North
America, Europe, Asia Pacific, and Latin
America
Business
Custom strategies to fit the
Same basic strategy worldwide with
circumstances of each host country minor country customisation where
situation
necessary
Product-line Adopted to local culture and
Mostly standardised products sold
particular needs and expectations worldwide, moderate customisation
of local buyers
depending on the regulatory framework
Production
Plants scattered across many host Plants located on the basis of maximum
countries, each producing versions competitive advantage (in low cost
suitable for the surrounding
countries close to major markets,
environment
geographically scattered to minimise
shipping costs, or use of a few world
scale plants to maximise economies of
scale)
Source of
Suppliers in host country preferred Attractive suppliers from across the
supply of raw
world
materials
Marketing and Adapted to practices and culture of Much more worldwide coordination;
distribution
each host country
minor adaptation to host country
situations if required
Cross country Efforts made to transfer ideas,
Efforts made to use almost the same
connections technologies, competencies and
technologies, competencies, and
capabilities that work successfully capabilities in all country markets (to
Company
organisation
Benefits of Globalization:
The merits and demerits of globalization are highly debatable. While globalization
creates employment opportunities in the host countries, it also exploits labour at a
very low cost compared to home country.
Some of the benefits of globalization are as follows:
For the purpose of commerce and pleasure, more and more people are
crossing national borders. Globally, on average nations in 1950 witnessed just
one overseas visitor for every 100 citizens. By the mid-1980s it increased to
six and ever since the number has doubled to 12.
Worldwide telephone traffic has tripled since 1991. The number of mobile
subscribers has elevated from almost zero to 1.8 billion indicating around 30%
of the world population. Internet users will quickly touch 1 billion.
Communication
style
Women in
Business
Business dress
code
Japan
It is difficult if
Japanese
language is not
known. The
combination of
vagueness and
lack of
understanding of
the language
results in problems
which make
decision-making
very difficult. Body
language is very
minimal and hence
difficult to read for
an untrained
Discrimination
towards women in
the workplace still
exists. Women are
assigned to
perform lower
grade tasks.
Women from
western countries
working in Japan
probably face
difficulties working
with Japanese
male co-workers.
The Japanese
mainstream
business follows a
conventional
business dress
code of dark suit,
shirt and tie.
Business dress
must be restrained
and formal for
women. In
business, women
do not wear
trousers.
Translators are
required if Chinese
language is not
known. The body
language of
people from
Chinese is very
restricted.
Women have
equal rights in the
workplace-e. But,
traditional
Confucian thinking
does not agree to
gender equality.
Businesswomen
from foreign
countries are
treated with great
respect and
courtesy.
Brazil
Ability to speak
Brazilian is an
advantage, even
though English is
spoken and
understood by
people in Brazil.
The body
language plays a
vital role in normal
communication.
Eye contact is also
very important
while speaking to
people.
Businesswomen
from foreign
countries are
treated fairly and
with respect.
France
Women are
gaining high
position in French
business life,
particularly with
strong
With position,
dress codes differ
within the
company,
industrial sector,
representation in
retail and service
industries. The
requirement for
success is to have
a suitable level of
education for
women.
and region in
France. People in
higher positions
within a larger
organisation follow
a very formal
dress code. In
southern region
the business dress
code is informal.
Q.3 Write a short note on Advantages of foreign direct investment and types of
foreign direct investment.
Answer.
Q.4 What are the key objectives and function of World Trade organization?
Answer.
Objectives
Functions: The important functions of the WTO as stated in the WTO agreement are the
following:
Providing help for export promotion The WTO provides specialized help
for export promotion to its members. The export promotion is done through
the International Trade Centre established by the GATT in 1964. It is operated
by the WTO and the United Nations. The centre accepts requests from
member countries, usually developing countries for support in formulating and
implementing export promotion programmes. The centre provides information
on export market and marketing techniques. The centre also provides
assistance in establishing export promotion and marketing services. Through
this WTO proves its commitment in the upliftment of the world economy.
Q.6 What are the various export promotion schemes offered by government in
order to promote export from the country?
Answer. Government in order to promote the exports from the country, offers some
export assistance and export promotion schemes so that exporters can benefit from
them. They can improve their key weaknesses and stand up to compete in the
international market by offering quality Indian products and services.
As the economy of the country is progressing with the increase in terms of
population, there is a need for more number of imports. We need to have surplus
exports to pay our imports.
Duty neutralization
and remission
a. Advance
authorisation scheme
b. Duty free import
authorisation scheme
c. Duty drawback
scheme
d. Imprest license for
deemed export
f. ASIDE scheme
g. Market access initiative
scheme
h. Market development
assistance scheme
i. Board of Trade
j. Town of export
excellence scheme
k. Brand promotion and
quality and test houses
scheme