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IBO1 International Business Environment June 2006
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Test Papers / Previous Question Papers of Indira Gandhi National Open University IBO1 International Business Environment June 2006

Post Graduate Diploma in International Business Operations
Master of Commerce
Term-End Examination

Time: 3 hours
Maximum Marks: 100

Note: Attempt any five questions including question No. 1 which is compulsory. All questions carry equal marks.

June 2006

1. (i) Write short notes on any trro of the following : 5+5

(a) Intemational Development Association

(b) Most Favoured Nation clause

(c) Multiple exchange rates

(d) American Depository Receipt

(ii) Distinguish between any two of the following : 5+5

(a) Bilateral trade and Multilateral trading system

(b) Polycentrism and Ethnocentrism

(c) Free Trade Area and Customs Union

(d) Centrally planned economy and Free market economy

2. A country's political system has an enormous impact on how business is conducted intemationally. Do you agree? Support your answer with suitable illustrations. 20

3. According to Heckcher Ohlin Samuelson theory, a country which is relatively abundant in labour will have comparative advantage in labour intensive goods. Do you agree? Give suitable illustrations in support of your answer. 20

4. Highlight the main advantages and disadvaniages of TNCs operations to the host country and the investing country. Illustrate your answer with appropriate examples. 20

5. What do you understand by 'Transfer of Technology'? Why do companies in developing countries go in For technology transfer and what are the usual problems faced by them in this regard? 20

6. Explain the objectives and functions of International Monetary Fund. 7+13

7. Discuss the salient features of international trade in commodities. What are the basic issues involved? What has been the role of UNCTAD is resolving them? 5+5+10

8. What is Electronic Commerce? What are its benefits? What steps would you suggest to popularise it in India? 5+10+5

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