University Of Pune Question Paper
M.M.S./M.B.S. (Semester – I) Examination, 2010
101 : INTERNATIONAL BUSINESS MANAGEMENT
(2008 Pattern) (New)
Time : 3 Hours Max. Marks : 70
Instructions : 1) Q.No. 6 Case Study is compulsory.
2) Answer any three questions from the remaining questions.
3) Q. 1 to Q. 5 carries 15 marks each and Q. 6 carries 25 marks.
1. Explain the Ricardo’s theory of comparative cost advantage with some example.
What are the assumptions made in the theory of comparative cost advantage ?
2. What are the causes of political risk that may impact a firm ? What are different
means adopted by the companies to deal with the political risks in the international
business ?
3. Discuss the following :
a) Impact of Global sourcing on Indian industry.
b) India’s competitive advantage in Textile industry.
4. Distinguish between ‘Balance of Trade’ and ‘Balance of Payment’. What are the
reasons for disequilibrium in the balance of payment ?
5. Write short notes on (any three) :
a) South East Asian Crisis.
b) International Monetary Fund (IMF)
c) TRIPS & TRIMS.
d) Methods of payment in International Trade.
e) NAFTA.
6. Case Study :
Benetton in the fast lane
Famous for its shocking advertisements Benetton started in 1955 as a small business.
Lucianno Benetton and his family started by selling colored sweaters door to
door in Treviso, Italy. Over time a regional network of family, friends and agents
set up a closely monitored set of distinctive retail outlets. Over a 15-year period
Benetton built up 300 afiliated but independently owned outlets in Italy and a
factory with new methods to dye and condition wool. Benetton was not directly
involved in the retail outlets, who received high quality products at low costs.
Part of the manufacturing savings are realized by outsourcing to neighbouring
subcontractors.
Today Benetton has kept this loose network of independent production
subcontractors and distribution agents but has now built up to a global network
of over 7,000 retail stores. Of these, Benetton owns only about 50 flagship stores
and the great majority are operated by independent entrepreneurs. Over
80 per cent of production still takes place in Italy and the company is still
72 per cent owned by the Benetton family.
Benetton is one of those successful global companies that was partly successful
because its production and design concept was built on a strong home base. It
then expanded the marketing end of its business through closely monitored (but
not owned) independent stores. These were able to use the Benetton brand name
and distinctive colours and were supported by clever international advertising.
Benetton does not advertise its clothes directly. Rather its advertisements are for
a “lifestyle”. The “United Colors of Benetton” ads are designed for a homogeneous
global consumer interested in fast cars and a fast lifestyle. Benetton goes in for
cutting-edge advertising that grabs public attention. This creates an image of
new-age awareness, as Benetton advertising has featured Formula I cars, AIDS,
high art , and “attitude”.
How well this plays out globally is uncertain. For example, in 1988 Benetton had
700 retail stores in the US but by 1995 it only had 150. Is this because Benetton
has too European an image to succeed in middle America ? How can an Italian
family firm understand the American lifestyle from its European bases ?
1) Is Benetton a multinational enterprise ?
2) What are the country-specific factors that have helped Benetton be a success ?
3) What are Benetton’s firm-specific advantages ?
——————
M.M.S./M.B.S. (Semester – I) Examination, 2010
101 : INTERNATIONAL BUSINESS MANAGEMENT
(2008 Pattern) (New)
Time : 3 Hours Max. Marks : 70
Instructions : 1) Q.No. 6 Case Study is compulsory.
2) Answer any three questions from the remaining questions.
3) Q. 1 to Q. 5 carries 15 marks each and Q. 6 carries 25 marks.
1. Explain the Ricardo’s theory of comparative cost advantage with some example.
What are the assumptions made in the theory of comparative cost advantage ?
2. What are the causes of political risk that may impact a firm ? What are different
means adopted by the companies to deal with the political risks in the international
business ?
3. Discuss the following :
a) Impact of Global sourcing on Indian industry.
b) India’s competitive advantage in Textile industry.
4. Distinguish between ‘Balance of Trade’ and ‘Balance of Payment’. What are the
reasons for disequilibrium in the balance of payment ?
5. Write short notes on (any three) :
a) South East Asian Crisis.
b) International Monetary Fund (IMF)
c) TRIPS & TRIMS.
d) Methods of payment in International Trade.
e) NAFTA.
6. Case Study :
Benetton in the fast lane
Famous for its shocking advertisements Benetton started in 1955 as a small business.
Lucianno Benetton and his family started by selling colored sweaters door to
door in Treviso, Italy. Over time a regional network of family, friends and agents
set up a closely monitored set of distinctive retail outlets. Over a 15-year period
Benetton built up 300 afiliated but independently owned outlets in Italy and a
factory with new methods to dye and condition wool. Benetton was not directly
involved in the retail outlets, who received high quality products at low costs.
Part of the manufacturing savings are realized by outsourcing to neighbouring
subcontractors.
Today Benetton has kept this loose network of independent production
subcontractors and distribution agents but has now built up to a global network
of over 7,000 retail stores. Of these, Benetton owns only about 50 flagship stores
and the great majority are operated by independent entrepreneurs. Over
80 per cent of production still takes place in Italy and the company is still
72 per cent owned by the Benetton family.
Benetton is one of those successful global companies that was partly successful
because its production and design concept was built on a strong home base. It
then expanded the marketing end of its business through closely monitored (but
not owned) independent stores. These were able to use the Benetton brand name
and distinctive colours and were supported by clever international advertising.
Benetton does not advertise its clothes directly. Rather its advertisements are for
a “lifestyle”. The “United Colors of Benetton” ads are designed for a homogeneous
global consumer interested in fast cars and a fast lifestyle. Benetton goes in for
cutting-edge advertising that grabs public attention. This creates an image of
new-age awareness, as Benetton advertising has featured Formula I cars, AIDS,
high art , and “attitude”.
How well this plays out globally is uncertain. For example, in 1988 Benetton had
700 retail stores in the US but by 1995 it only had 150. Is this because Benetton
has too European an image to succeed in middle America ? How can an Italian
family firm understand the American lifestyle from its European bases ?
1) Is Benetton a multinational enterprise ?
2) What are the country-specific factors that have helped Benetton be a success ?
3) What are Benetton’s firm-specific advantages ?
——————
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