IBO 01 Solved Assignment 2024-25

Free IBO 01 Solved Assignment English Medium 2023-24 for July 2023 and January 2024 Session, All IGNOU Assignments (Programme Wise) · Master's Degree Programmes · Bachelor's Degree Programmmes · P.G. Diplomaa Programmes · Diploma Programmes · Certificate Programmes. IGNOU Assignment 2023-24 (UPDATED) Get Here. IGNOU Assignment Status 2023-24, Marks, Grade Card, Practical Submission

I.B.O – 01

International Business Environment IGNOU IBO 01 Solved Assignment 2023-24

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NOTE: All questions are compulsory.

Q1. a) Define international economic environment. Discuss the major economic indicators of international economic environment which influence the foreign market decisions with examples.

The international economic environment refers to the overall economic conditions and factors that affect countries' economies and their interactions with each other in the global marketplace. It encompasses various aspects such as trade, finance, investment, exchange rates, economic policies, and global economic institutions. Understanding the international economic environment is crucial for businesses and policymakers as it directly influences their decisions regarding trade, investment, and market expansion strategies.

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Foreign market decisions are influenced by the GDP growth rates of countries. For example, if a country experiences robust GDP growth, it may signal a growing consumer market and increased demand for foreign goods and services.

High inflation can erode purchasing power and decrease consumer demand, affecting foreign market decisions. For instance, companies may adjust their pricing strategies in response to inflationary pressures in foreign markets.

Exchange rates determine the value of one currency in terms of another and play a crucial role in international trade and investment.

Fluctuations in exchange rates impact the competitiveness of exports and imports, affecting foreign market decisions. For example, a depreciation of a country's currency can make its exports cheaper and more attractive to foreign buyers.

Changes in interest rates by central banks can impact foreign market decisions by affecting the cost of capital and investment attractiveness. For instance, lower interest rates may stimulate borrowing and investment in foreign markets.

A positive trade balance (surplus) indicates that a country exports more than it imports, while a negative trade balance (deficit) implies the opposite. Trade balances influence foreign market decisions by indicating market demand and trade competitiveness.

Political stability and the policy environment influence investor confidence and business operations in foreign markets.

Uncertainty or instability in politics and policies can deter foreign investment and trade. For example, changes in regulations or trade policies may prompt companies to reassess their market strategies.

Global economic trends, such as economic growth rates, geopolitical events, and major economic crises, impact the overall international economic environment.

These trends influence foreign market decisions by shaping market opportunities, risks, and investor sentiment. For instance, a global recession may lead companies to prioritize markets with stronger growth prospects.

In summary, the international economic environment is multifaceted, comprising various economic indicators that influence foreign market decisions. Businesses and policymakers closely monitor these indicators to assess market conditions, identify opportunities, and mitigate risks in the global marketplace.

b) Explain the impact of elements of culture on a firm's international business operations with examples.

Q2. What is Balance of payments? Describe the components of balance of payments with hypothetical examples. How do deficit and surplus in Balance of payments affect international trade? Discuss with suitable examples.

Q3. Distinguish between the following:

a) Product Price Ratio and Factor Price Ratio

b) Added Networks Services and Internet Services

c) Consumer Surplus and Producer Surplus

d) Globalization and Glocalization

Q4. Comment on the following statements:

a) An international business firm should not monitor the foreign country's trade, monetary and balance of payments account.

b) A major problem with laws in different countries is that the legal systems of the world are harmonized.

c) Globalization has not influenced the Indian economy.

d) FDI does not help in accelerating the rate of economic growth of the host country.

Q5. Write short notes on the following:

a) The Heckscher-Ohlin-Samuelson (HOS) Theorem

b) Trade Related Investment Measures (TRIMS)

c) Special Drawing Rights

d) Alternative Dispute Resolution

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