FALL-2015 Get solved assignments at nominal price of Rs.125 each. Visit www.instamojo.com/subjects4u search for your code pay and download fully solved assignments. Any issues mail us at: [email protected] or contact at 09882243490 Master of Business Administration- MBA Semester 3 IB0012-Management of Multinational Corporations-4 Credits (Book ID: B1906) Assignment (60 Marks) Note: Answer all questions must be written within 300 to 400 words each. Each Question carries 10 marks 6 X 10=60. Q1. ‘The eclectic theory is an analytic approach towards understanding foreign direct investment as well as the organizational issues of MNCs pertaining to international production.’ Critically examine this statement. Answer. Multinational corporations have existed since the beginning of overseas trade. They have remained a part of the business scene throughout history, entering their modern form in the 17th and 18th centuries with the creation of large, European-based monopolistic concerns such as the British East India Company during the age of colonization. Multinational concerns were viewed at that time as agents of civilization and played a pivotal role in the commercial and industrial development of Asia, South America, Q2. What do you understand by global sourcing? What are the different forms of global sourcing? Elucidate. Answer. Global Sourcing A procurement strategy in which a business seeks to find the most cost efficient location for manufacturing a product, even if the location is in a foreign country. For example, if a toy manufacturer finds that manufacturing and delivery costs are lower in a foreign country due to lower wages of foreign employees, the company might close the domestic factory and use a foreign manufacturer. Global sourcing generally refers to sourcing outside of Q3. Why is a good organizational structure needed? Also discuss the benefits of a good organizational structure. Answer. Businesses require structure to grow and be profitable. Designing an organization structure helps top management identify talent that needs to be added to the company. Planning the structure ensures there are enough human resources within the company to accomplish the goals set forth in the company’s annual plan. Reporting Relationships Reporting relationships must be clear so all members of the organization understand what their Q4. How is the performance of employees assessed and appraised in multinational corporations? Explain in brief. Answer. Organizations have indentified the importance of performance appraisal and it has been found in the cases of all big multinational companies that they have implemented the performance appraisal systems to enhance the productivity of their employees. There are varieties of different perspectives that evident the importance of Q5. What are the main reasons pertaining to the inadequate attention towards issues relating to labour relations in MNCs? Answer. Following are the Key Issues in International Industrial Relations (IIR) Issue 1: Who should handle Labour Relations – Headquarter or the subsidiary in the concerned country the national dissimilarities in economics, political, and legal systems create diverse labour-relations system across countries, MNCs HQs typically delegate the control over labour relations to their foreign subsidiaries. Having said that, the participation of the MNC headquarters in host-country labour relations is impacted by 4 Q6. Write short notes on: a. Indian MNCs b. FDI and MNC Answer. a. A multinational company or corporation (MNC) is a company that manages its operations, production or service FALL-2015 Get solved assignments at nominal price of Rs.125 each. Visit www.instamojo.com/subjects4u search for your code pay and download fully solved assignments. Any issues mail us at: [email protected] or contact at 09882243490