NMIMS Assignment Solution Dec 20
Note: You have to edit 10-20% before submission for avoid copy case. Why need
1. Discuss how Porter’s Diamond Theory can be used to explain India’s growth as a IT services export hub for global markets.
2. How do the levels of economic integration differ? How does USMCA (United States-Mexico- Canada Agreement) differ from NAFTA in terms of economic benefits for member nations?
3. Read the passage and answer the questions given below it:
While there’s no launch date yet, the People’s Bank of China is likely to be the first major central bank to issue a digital version of its currency, the yuan, seeking to keep up with — and control of — a rapidly digitizing economy. Trials have been held this year in a handful of cities and tests have started with some e-wallets and online apps, with the Covid-19 pandemic and need for social distancing providing a new sense of urgency. Unlike cryptocurrencies such as Bitcoin, dealing in the digital yuan won’t have any presumption of anonymity, and its value will be as stable as the physical yuan, which will be sticking around too. Behind China’s rush is a desire to manage technological change on its own terms. As one PBOC official put it, currency isn’t only an economic issue, it’s also about sovereignty.
Not all the details are out, but according to new patents registered by the PBOC and official speeches, it could work something like this: Consumers and businesses would download a digital wallet onto their mobile phone and fill it with money from their account at a commercial bank — similar to going to an ATM. They then use that money — dubbed Digital Currency Electronic Payment, or DCEP — like cash to make and receive payments directly with anyone else who also has a digital wallet. Some questions remain, including the impact on Big Tech companies such as Ant Group Co. and Tencent Holdings Ltd. that already offer payment services. (retrieved from :
a. What is the role of digital currency in the economic environment of a nation? (5 Marks)
b. How does digital currency impact those companies doing business with China? (5 Marks)
1. Comment on the following statement: “Since the U.S. imports more than it exports, it is necessary for the U.S. to import capital from foreign countries to balance its current account deficits.”
2. Why is the Documentary Letter of Credit collection method most popular mode of collecting payment by the exporters? How is an irrevocable L/C different from back to back L/C?
3. Read the passage and answer the questions given below it: The European Union (EU) has finally adopted duties on shoe imports from China and Vietnam in a dispute over alleged dumping of cheap footwear. The announcement came after a vote by trade officials from the 25 EU nations earlier this month highlighted divisions over the planned tariffs. While Italy and Portugal wish to protect their own shoe firms, others like the cheaper Far Eastern imports. But the European Commission voted in favor of the measure on Thursday. In a statement, the EU’s executive body said that it had “identified clear evidence of disguised subsidies and unfair state intervention to the leather footwear sector in China and Vietnam”. Trade Commissioner Peter Mandelson has proposed duties of 16.8% against Vietnam and 19.4% on China to be phased in over five months, starting at 4% in April. “We do not target China and Vietnam’s natural competitive advantages, only unfair distortions of trade”. Mr. Mandelson said that tariffs were necessary to correct the damage that cut-price shoe imports were doing to EU firms. But he added: “It is important that we act against unfair trade while encouraging legitimate and competitive trade from emerging economies. China has urged the EU to reconsider its action, saying the planned measures are unfair.
Chinese officials say there is no evidence of dumping and question whether the duties conform with World Trade Organization rules. China exported 1.2bn pairs of shoes to Europe last year, while Vietnam exported 265m pairs. According to the Commission, the tariffs will add £1 to the average import price of the footwear of about £6.
a. Analyze the above situation and discuss whether EU should impose anti-dumping duty on China.
b. What is the role of WTO (World Trade Organization) in International Trade Dispute Resolution?
Previous June 2020
Q1. In the US-China Trade war, what are the trade control measures taken by both the countries. How are the US & Chinese companies getting affected?
Q2. Discuss the effects of regional integration in terms of trade creation and trade diversion. Prepare a list of Regional Trade Agreements of India
3. Read the passage and answer the questions mentioned below the passage.
Coronavirus has put a spotlight on the economic decoupling of China and some developed countries. With factories shuttered and consumption stalled, multinational companies have been forced to shift production elsewhere. Apple has warned investors that its revenues will take a hit as a result of the outbreak. A gradual decoupling of global economies has been under way for a few years. The South Korean electronics group Samsung, for example, has been closing Chinese plants and opening others in Vietnam. Mexico has benefited from some US corporations moving their supply chains closer to home. But decoupling will undoubtedly speed up as Beijing’s opacity in handling the coronavirus epidemic highlights the risks of doing business in China.
There are marked similarities between the virus and decoupling itself. There is what you see on the surface (masks and panic or supply chain shifts and profit warnings) and then there is what you can’t know: how many victims the outbreak will claim or what the world will look like economically and politically in five to 10 years, as globalization dissolves and divides deepen.
Still, it is the job of a columnist to go out on a limb, so let me make a few predictions about what may lurk around the corner if the decoupling continues. An increased risk of violence in Taiwan, the inability of Europe to defend its own liberal democratic values, and a world in which smart devices can no longer speak to each other across borders are distinct possibilities. And all of these things could fundamentally reshape the global economy and geopolitics. The most pressing issue in the short term is Taiwan, whose firms make most of the world’s semiconductors. The majority are produced by Taiwan Semiconductor Manufacturing Company, a contract chipmaker that supplies US.
companies, including Apple, and a number of Chinese firms. Semiconductors are a key area in which the Chinese are not yet technologically self-sufficient. In hardware (from routers to switches to handsets), areas of software and high-tech services, the Chinese have already largely decoupled from the US. Consider the success of homegrown firms such as the smartphone maker Xiaomi. Or the telecoms group Huawei’s efforts to build bespoke Chinese operating systems. Or the fact that many of the most innovative new mobile apps are developed in China.
But semiconductors require huge amounts of capital investment and research effort. It could be a decade before China can fully develop its own industry. In the meantime, it will be dependent on Taiwan, which not only supplies US companies, but where support for democracy is growing. This begs the question of whether, or perhaps when, Taiwan’s semiconductor industry might become a political hot potato, as both China and the US try to build their own independent high-tech sectors.
It is hard to imagine that Taiwan will be able to operate in both orbits indefinitely. As one telecoms analyst put it to me recently, “What’s happened in Hong Kong is fascinating and disturbing in part because it raises the question, what happens if the same thing occurs in Taiwan?” Imagine a world in which cross-border banking, online shopping and data sharing becomes bifurcated between two systems. That is a reality we may be heading towards. Apple and other tech companies would certainly take a valuation hit in such a future. But so would many others in industries beyond technology. As with coronavirus, the effects of decoupling will be both unpredictable and exponential.
(accessed from https://www.ft.com/ on 27th February,2020)
a. Do you think that globalization is under threat? Are transnational firms going to become extinct? Give your comments with reference to the passage. (5 Marks)
b. With your knowledge of International Business, explain how different political systems across nations may create risks for the conduct of business. (5 Marks)
Previous Year NMIMS Question
- Analyze the financial accounts in the Balance of payments statements of any two countries in the BRICS (Brazil, Russia, India, China, South Africa) for different types of capital flows.
- Being an exporter of garment house, discuss how letter of credit can be used for processing export contracts.
- Alphabet unit Google was hit with a record-breaking 4.34 billion euro ($5.04 billion) fine on Wednesday, topping the 2.4 billion euros it was ordered to pay in another case last year. EU antitrust regulators accused it of abusing the dominance of its Android smartphone operating system by blocking rivals. Below is a timeline of Google’s antitrust cases in Europe:
18 July 2018 – EU antitrust regulators hand down a 4.34 billion euro fine to Google after a three-year long investigation. 27 June 2017 – EU fines Google 2.4 billion euros for thwarting rivals of shopping comparison websites. 14 July 2016 – EU sets out another charge against Google’s shopping service. It also accuses the company of preventing third parties using its Adsense product from displaying search advertisements from Google’s competitors – a third case against the company. 20 April 2016 – EU sends a charge sheet to Google outlining the company’s anti-competitive practices with regard to Android smartphone makers and apps makers. 15 April 2015 – EU opens investigation into Google’s Android smartphone operating system. 15 April 2015 – EU charges Google with blocking competitors of its shopping service. Sept 2014 – Almunia says he will not be able to wrap up the Google case before his mandate ends in October. May 2014 – Joaquin Almunia, European Competition Commissioner at that time, says feedback from complainants will be crucial to determining whether he accepts Google’s concessions. 5 Feb 2014 – Google improves its concessions related to online search.
2013 – Lobbying Group Fair Search files a complaint about Google’s Android business practices to the European Commission. 25April 2013 – EU seeks feedback from rivals and users to Google’s concessions.
- a. Discuss how the legal aspects of business environment impacting Google in Europe. (5 Marks)
- b. Discuss all the other aspects of the business environment that provide complexity to international business operations like cultural aspects for companies engaged in International business. (5 Marks)