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IB06 International Business

Assignment No.I
Assignment Code: 2012IB06A1 Last Date of Submission: 15th April 2012 Maximum Marks:100

Attempt all the questions. All the questions are compulsory and carry equal marks.

Section-A Ques. 1

(a). (b).

Describe in detail the opportunities and challenges that Globalization has presented. Support your answer with examples. What are the functions of Ministerial Conference?

Ques. 2

(a) Write short notes on any two: 1- Futures and options contract 2- WTO agreement on Services 3- Counter Trade

(b)

Why some joint ventures succeed and why some fail to deliver?

Ques. 3

(a).
(b).

Discuss in detail factors determining exchange rates How does exchange rate fluctuations affect the profitability of companies engaged in Export Import.

Ques. 4

Choice of a strategy for a multinational firm depends on a comparison of benefits and costs of implementation. On this basis, it may be logical for a firm to pursue a multidomestic strategy, for others a global strategy or an international strategy, and still for others, a transnational strategy? Explain. Section-B

Case Study: Monsanto’s Repatriation Program Monsanto is a global provider of agricultural products with revenues in excess of $4 billion and 10,000 employees. At any one time, the company will have 100 mid and higher-level managers on extended postings abroad. Two thirds of these are Americans who are being posted overseas, while the At Monsanto, managing remainder are foreign nationals being employed in the United States.

expatriates and their repatriation begins with a rigorous selection process and intensive cross-cultural training, both for the managers and for their families. As at many other global companies, the idea is to build an internationally minded cadre of highly capable managers who will lead the organization in the future.

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subordinates. The focus is on why employees are going abroad to do the job. develop an agreement about how this assignment will fit into the firm’s business objectives. But the personal matters obviously affect an employee’s on-the-job performance. and what their contribution to Monsanto will be when they return. They are also given the opportunity to showcase their experiences to their peers. expatriate managers meet with cross-cultural trainers during debriefing sessions. 2 of 4 . Once they arrive back in their home country. This is why Monsanto offers returning employees an opportunity to work through personal difficulties. Sponsoring managers are expected to be explicit about the kind of job opportunities the expatriates will have once they return home. the attrition rate among returning expatriates has dropped sharply. According to one participant. expatriates meet for three hours at work with several colleagues of their choice. or sponsors. a time to talk and put your feelings on the table.it works. The debriefing allows the employee to share important experiences and to enlighten managers. You’re going through the move. the children may be going to a new school. colleagues and friends about his or her expertise so others within the organization can use some of the global knowledge. since the program was introduced in the early 1990s. About three months after they return home. The debriefing session is a conversation aided by a trained facilitator who has an outline to help the expatriate cover all the important aspects of the repatriation. a new house. it also attends to the family’s reentry. transitioning to a new job. However Monsanto’s repatriation program focuses on more than just business. and superiors in special information exchanges.” Apparently. (b). but it’s such a hectic time in the family’s life . you don’t have time to sit down and take stock of what’s happening. “It sounds silly. Questions: (a). so it is important for the company to pay attention to such issues. This is a kind of oasis.One of the strongest features of this program is that employees and their sending and receiving managers. Why does Monsanto need to recruit expatriates for their US Operations? Why & How does the repatriation programme of Monsanto is helping reduce attrition rates? Page No. Monsanto has found that difficulties with repatriation often have more to do with personal and family-related issues than with work-related issues.

By April 2000. The change of strategy stemmed form a growing realization that Deutsche Bank’s branch and online banking platform provided a powerful sales channel to a rapidly growing “money class” – Europe’s highly educated and prosperous 30 and 40 year olds. Bank 24 had also been a pioneer in using the Internet to sell banking services. estimated there are more than 60 million people in this demographic with the European Union. An important component of the proposed merger was a plan by Deutsche Bank and Dresdner to combine their retail bank operations into Deutsche Bank’s retail banking division. realized it could use its retail branch Ques. the majority in Germany but 1. 1 Write short note on : (a). The stated strategic goal of the merger was to create a European investment and asset management institution that would have the economics of scale required to compete with the top global investment banks. 3 Ques. All the questions are compulsory and carry equal marks. Bank 24 had some 11 million customers. Germany’s largest bank.IB06 International Business Assignment No. and then spin off bank 24 as an independent entity in which the merger company would have no more than a 10 percent ownership stake. The plan to spin off bank 24 indicated the two banks had decided to withdraw from retail banking. Deutsche Bank. while investment banking was a high-margin business. Section-B Case Study In March 2000. 2000 retail branches. 3 of 4 . Section-A Ques. instead concentrating on the wholesale side of the business (investment banking and money management). ‘Just in Time’ manufacturing Discuss various pre-ship documents to be made by an exporter of Engineering goods. bank 24 was at the heart of a new strategy by Deutsche Bank to build a panEuropean retail channel. noting that retail banking in Germany was a low-margin business that held few attractions. Deutsche Bank. At the time. this group is switching their savings from deposit accounts into equities and investment funds as they begin to plan for their retirement. FEMA (c). FDI in Retail Business in India (b). 4 Page No. but six months later the bank announced it had rethought its retail strategy.000 in Spain. What is meant by the term ‘Flexible manufacturing’ and JIT? What is ‘transfer pricing’? Explain terms like. Germany’s third largest bank.II Assignment Code: 2012IB06A2 Last Date of Submission: 15th May 2012 Maximum Marks:100 Attempt all the questions. Suddenly. few thought that this would lead to a change in strategy at Deutsche Bank. Bank 24. Increasingly. and by 2000 some 20 percent of all transactions were online. including Citicorp and Merrill Lynch. Deutsche Bank. In addition to its. FOB & CIF. Incoterms (d). however the proposed deal had collapsed following significant disagreements between management teams at the two companies. Initially. Most analysts applauded the proposed deal. 2 Ques.5 million in Italy and another 600. announced it would merge with Dresdner bank.

Now estimates suggest it will take some $ 250 million of marketing expenditure just to achieve brand recognition across Europe. where Bank 24 already has a presence. it will move into the Netherlands and the United Kingdom. 4 of 4 .000 and reducing total employment by about 10 percent. The geographical distribution of branches will change. France and Belgium. the impediment to the cross-border sale of money management products had been significantly reduced. If attained this would give Deutsche bank a 3 percent share of the global online market is expected to exist by 2008. Despite this investment. Another element of the strategy calls for Deutsche bank to expand the reach of its online brokerage unit. Maxblue had some 300. The company. while retail branches are opened in other European countries. into a coherent whole. Before the change in strategy. into a pan-European discount broker. Deutsche Bank also realized that with the advent of the euro. Thus. however. at least within the Euro-zone. such as Poland and the Czech Republic (both of which have applied to enter the EU). Deutsche Bank plans to weld bank 24’s operations. unifying information technology. Maxblue. the majority in Germany. Questions: 1. and marketing the new look. Deutsche Banks claims the shift in strategy will boost Bank 24’s profits from euro 400 million in 2004 to euro 1 billion by 2008. Bank 24 will be used to market Maxblue. as well as some non – EU countries. Implementing this strategy will require heavy investments. The plan calls for this number to grow to 1. with some branches in Germany being consolidated or closed. Spain. Deutsche Bank had budgeted some $ 110 million for building up Bank 24. Deutsche Bank also indicated that Bank 24 might make selected acquisitions to establish a larger retail presence in other EU nations. particularly in information technology. however. and significant additional investments will be required in information technology. In late 2004. The initial plans call for further expansion in Italy. What are the main elements of Deutsche Banks strategy for Bank 24? Does this strategy hold appeal given (a) the creation of a single market in the European Union and (b) the introduction of the euro? 2. while keeping the number of branches constant at 2. The basic idea will be to offer a full range of financial services via branch offices. telephones and increasingly the Internet. the emphasis is likely to be the Internet.network to sell the investment banking and asset management operations. To implement the strategy. The model in each country will be the same. What potential impediments do you think might get in the way of Deutsche Bank’s aspirations to establish a pan-European retails presence and a pan-European discount brokerage? Page No. many of whom would be outside of Germany. the company wants to grow its retail customer base to 14 million by 2004. which are scattered across seven European countries. But in an effort to curb costs. also states that if the concept works.5 million by 2008. including redesigning branches abroad.000 client accounts.