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DRIVE winter 2016

PROGRAM - Master of Business Administration- MBA

SEMESTER - Semester 3

SUBJECT CODE & NAME - IB0012 Management of Multinational Corporations

BK ID - B 1906

CREDIT & MARKS - 4 CREDITS, 60 MARKS

Q1. Define Multi-National Corporations & Transnational Corporations? What are the Main
difference between MNC & TNC? 10

Ans: Multinational Corporation: Multinational Corporations (MNCs) are business entities that operate
in more than one country. MNCs are entities that undertake foreign direct investment. They own or
control income generation assets in more than one country, produce goods and services in the host
country and sell in international markets. In other words, MNCs have their home in one country but
operate in many countries under different laws, customs and regulations. Several definitions of MNCs
have been propounded by economists and researchers on the basis of their size, variety of products, sales
and volume of business operating in multiple countries. However, there is no standard definition of
multinational corporations as their nature of business varies significantly across the globe. The

Q2. What are the different types of organizational structures discuss in detail? (Bureaucratic
Structures, Functional Structures, Divisional Structure, Matrix Structure) 10

Ans: Bureaucratic Structures: In terms of people management, bureaucratic structures maintain strict
hierarchies. Bureaucratic structures may be understood through the following division:

(i) Pre-bureaucratic structure: This kind of structure is visible in organizations which lacks
standards. Pre-bureaucratic structure is generally seen in start-up ventures or small-scale
companies. The main feature of this set up is that the
Q3. Write a note on concept of organizational control& characteristics of effective control? 10

Ans: Concept of Organization Control: Control is very important both in organized living as well as
living organizations. When things go smoothly as planned, they are considered to be under control.
Self-control is a word we are all familiar with and which simply means that we discipline ourselves in
such a manner that

Q4. Explain in detail about logistic system analysis& trade-offs of logistic analysis. (Explain in
detail about logistic system analysis, Explain in detail about Trade-offs of logistic analysis.) 5, 5

Ans: Logistics Management in MNCS: Physical distribution is the set of activities concerned with
efficient movement of finished goods from the end of the production operation to the consumer. Physical
distribution takes place within numerous wholesaling and retailing distribution channels, and includes
such important decision areas as customer service, inventory control, materials handling, protective
packaging, order

Q5. Define Foreign Direct Investment & types of Foreign direct investment? 2, 8

Ans; Foreign Direct Investment (FDI): Foreign direct investment is one of the most effective methods
of cross-border investing. A foreign national may want to invest in a country offering new markets, higher
returns or cheaper factor costs. Generally, there are two kinds of cross-border investments.

(i) Foreign Direct Investment (FDI): Investments made by a company or entity based in one country,
into a company or entity based in another country

(ii) Foreign Portfolio

Q6. Explain in detail Foreign Policy of India. (Routes for FDI in India, Revision in FDI Policy of
2013) 5, 5

Ans: FDI Policy of India: In order to augment FDI inflows, the government had taken various steps to
liberalize the FDI regime in 2010 by allowing overseas investments in bee-keeping and share-pledging
for raising external debt. The government also allowed hundred per cent foreign investment in single-
brand retail.

Routes for FDI in India: The two routes for FDI investment in India are:

(i)
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