IB06 International Business

Assignment No.I
Assignment Code: 2011IB06B1 Last Date of Submission: 30th Sept 2011 Maximum Marks:100

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

Section-A

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List out highlights of the Indias Foreign Trade Policy 2009-14. Write short notes on any two: a) Futures and options contract b) WTO agreement on Services c) Counter Trade China has become major trade partner of India after US. What major items India exports to China ? And what items it imports from China? In which area both countries are major competitors ? Will the free trade agreement with China will be beneficial to India? Discuss. Explain the objectives and powers of WTO? What is dumping? Section-B

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Case Study New Horizons of FDI in India Maharashtra received the bulk of a total of 141 foreign direct investments in the country, worth a total $171.72 million, in the food-processing sector during April 2007-March 2009 The extant policy permits FDI under the automatic route in most sectors/activities, including foodprocessing industries. No specific criteria have been laid down for FDI into sectors under the automatic route. However, proposals requiring prior government approval are considered by the Foreign Investment Promotion Board (FIPB), an inter-ministerial recommendatory body, which takes into account the policy and sectoral guidelines for FDI, according to the minister. The FIPB also examines whether the proposal would jeopardize an existing joint venture or technology transfer/trade mark agreement, if any, in the same field in India. There is no definitive indication about the adverse impact of FDI on the small food processing units and no data is available centrally regarding the effect of FDI on the domestic industry.

Foreign direct investment, he said, complements and supplements domestic investment. FDI brings in,

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apart from capital, state-of-art technology and best managerial practices, thereby providing better access to the domestic industry to foreign technology and integration into the global market, he added. The government has also announced a number of incentives for the development of the food processing industry in the country, including its inclusion in the list of priority sector for bank lending, automatic approval for foreign equity up to 100 per cent for most processed food items excepting alcohol and beer and those reserved for the small scale sector subject to certain conditions, zero excise duty on processed fruits and vegetables, income tax holiday and other concessions for certain food processing industries sectors, etc. No state specific policy packages have been announced so far, the minister stated. Besides, the ministry of food processing industries has been implementing various infrastructure development schemes such as setting up of mega Food Park, cold chain, modernization of abattoirs and value added centers. The ministry has also been undertaking schemes for technology up gradation/ establishment/ modernization of food processing industries, quality assurance, codex, standards and R&D, human resource development, strengthening of institutions and up gradation of quality of street food. Case Questions Q1.What could be the pitfalls of this rising trend of FDI in Food Processing Sector? Q.2. Despite grey areas, FDI is welcomed in this sector. Explain Why ?

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IB06 International Business

Assignment No.II
Assignment Code: 2011IB06B2 Last Date of Submission: 15th Nov 2011 Maximum Marks:100

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

Ques.1 Ques.2

Section-A a).Discuss objectives and highlights of ASEAN agreement b).Describe the status of ASEAN India free trade agreement. Write short notes on: (a) EXIM Documentation (b) Role of Export Promotion Council a).Describe various strategies used by companies to compete in international markets. b).Describe Global-Hex model in International business. What are various sources of financing for a Multinational Firms global production. Explain one in detail. Section-B

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Case Study: Monsantos 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 remainders are foreign nationals being employed in the United States. At Monsanto, managing expatriates and their repatriation begins with a rigorous selection process and intensive cross-cultural training, both for the managers 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. One of the strongest features of this program is that employees and their sending and receiving managers, or sponsors, develop an agreement about how this assignment will fit into the firms business objectives. The focus is on why employees are going abroad to do the job, and what their contribution to Monsanto will be when they return. Sponsoring managers are expected to be explicit about the kind of job opportunities the expatriates will have once they return home. Once they arrive back in their home country, expatriate managers meet with cross-cultural trainers during debriefing sessions. They are also given the opportunity to showcase their experiences to their peers, subordinates, and superiors in special information exchanges. However Monsantos repatriation program focuses on more than just business; it also attends to the familys reentry. Monsanto has found that difficulties with repatriation often have more to do with personal and family-related issues than with work-related issues. But the personal matters obviously affect an employees on-the-job performance, so it is important for the company to pay attention to such issues.

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This is why Monsanto offers returning employees an opportunity to work through personal difficulties. About three months after they return home, expatriates meet for three hours at work with several colleagues of their choice. 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. The debriefing allows the employee to share important experiences and to enlighten managers, colleagues and friends about his or her expertise so others within the organization can use some of the global knowledge. According to one participant, It sounds silly, but its such a hectic time in the familys life, you dont have time to sit down and take stock of whats happening. Youre going through the move, transitioning to a new job, a new house; the children may be going to a new school. This is a kind of oasis; a time to talk and put your feelings on the table. Apparently it works; since the program was introduced in the early 1990s, the attrition rate among returning expatriates has dropped sharply. Case Questions a).Why does Monsanto need to recruit expatriates for their US Operations? b).Why & How does the repatriation programme of Monsanto is helping reduce attrition rates?

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