When two or more firms come together to create a new business entity that is legally separate and distinct from its parents it is known as

1

(a)

Contract manufacturing

(b)

Franchising

(c)

Joint ventures

(d)

Licensing

Which one of the following modes of entry requires higher level of risks?

1

(a)

Licensing

(b)

Franchising

(c)

Contract manufacturing

(d)

Joint venture

Which one of the following modes of entry permits greater degree of control over overseas operations?

1

(a)

Licensing/franchising

(b)

Wholly owned subsidiary

(c)

Contract manufacturing

(d)

Joint venture

Which one of the following is not amongst India's major export items?

1

(a)

Textiles and garments

(b)

Gems and jewellery

(c)

Oil and petroleum products

(d)

Basmati rice

Which one of the following is not amongst India's major import items?

1

(a)

Ayurvedic medicines

(b)

Oil and petroleum products

(c)

Pearls and precious stones

(d)

Machinery

Which one of the following is not amongst India's major trading partners?

1

(a)

USA

(b)

UK

(c)

Germany

(d)

New Zealand

Differentiate between international trade and international business.

3

(a)

Discuss any three advantages of international business.

3

(a)

What is the major reason underlying trade between nations?

3

(a)

Differentiate between contract manufacturing and setting up wholly owned production subsidiary abroad.

3

(a)

Distinguish between licensing and franchising.

3

(a)

List major items of India's import.

3

(a)

What are the major items that are exported from India?

3

(a)

List the major countries with whom India trades.

3

(a)

What is international business? How is it different from domestic business?

5

(a)

"International business is more than international trade". Comment.

5

(a)

What benefits do firms derive by entering into international business?

5

(a)

What is invisible trade? Discuss salient aspects of India's trade in services.

5

(a)