IGNOU IBO-01 June 2023 Previous Year Question Paper

Q1.Comment on any four of the following statements : 5 each

(a) “Countries running deficit i n their balance of payments accounts generally impose controls on movement of foreign exchange out of their economies.”

(b) “India has not entered the globalisation era in a significant manner.”

(c) “MNCs, through their market power, create oligopolistic or monopolistic market conditions.”

(d) “Intellectual property cannot transcend national boundaries.”

(e) “The dissatisfaction at the relative slow progress of trade liberalisation at global level has contributed to formation of regional groupings.”

(f) “International trade laws and procedures are very simple for settlement of international trade disputes.” Part—B Note : Attempt any four of the following questions. 4×20=80

Q2.Define international business environment.

Q3.How does the home country environment influence foreign business operations of a firm ? Explain. 20 [ 3 ]

Q4.What do you mean by the Balance of Payments ? Describe various components of the Current Account. Distingui sh between the Current Account and the Capital Account.

Q5.Describe the components of the Capital Account.

Q6.Distinguish between tariff and non -tariff barriers. Explain non -tariff barriers which are normally used to re strict the international trade.

Q7.What is an MNC ? Why do firms become transnational ? Discuss the issues and controversies related to MNCs.

Q8.What is the rationale of Regional Economic Groupings ? Do you think that such a grouping may be beneficial for India ?

Q9.What are the principal functions of Internet ? Are they similar to a VAN ? Describe at least four basic tools used on the Internet . How are these tools important for International Business ? 20 [ 4 ]

Q10.Write short notes on any two of the following : 10×2=20

(a) Distinguish between foreign direct investment and portfolio investment

(b) Terms of Trade

(c) Role of UNCTAD in finding solutions to commodity problems

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