KSLU Solved Question Papers
International Business
Previous Year Question Paper with Solution
B.B.A. LL.B. (Five Years) · Sem 4
2013 Jun Examination
munotes.in
Mumbai
B.B.A. LL.B. (Five Years) Sem 4 International Business 2013 Jun Question Paper with Solutions
First published on munotes.in on 21 October 2026.
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The question paper reproduced here is the paper as set by Karnataka State Law University at the 2013 Jun examination.
Contents
The questions below are the paper as Karnataka State Law University set it at the 2013 Jun examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the 2013 Jun examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.
Duration 2½ hours · Total marks 70 · 20 questions answered
Instructions printed on the paper
- N.B. (1) Answer all 5 questions. (2) One essay type and one short note question or problem from each unit have to be attempted, which is referred as part (a) and (b) in all the units. (3) Figures to the right indicate marks.
How to use this volume
Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q1
Unit I
(a)What are the different competitive advantages of global business ?[9]
Answer
For full marks, cover: the meaning of competitive advantage and how it differs from comparative advantage; why a global setting changes it; the main competitive advantages a firm gains by operating internationally (scale, scope, location, global sourcing, technology, brand, learning, finance, risk spreading, network flexibility); Porter's diamond and the generic strategies; India's competitive advantages with official figures; how advantage is sustained; a table; and a conclusion.
Meaning
Competitive advantage is the ability of a firm to offer customers better value than its rivals and to earn above-average profits as a result. It comes either from lower cost, so the firm can charge less, or from differentiation, so customers will pay more for something they value. In a global setting, a firm competes with rivals from many countries. Its advantage must therefore hold against the best firms in the world, not only against local ones.
Comparative and competitive advantage
Comparative advantage belongs to a country. A country gains by specialising in goods it can produce at a lower opportunity cost than other countries. Competitive advantage belongs to a firm or an industry. It is created by the firm's own choices of technology, quality, cost control and marketing. A country may have cheap labour (a comparative advantage), but only firms that use it well gain a competitive advantage.
Competitive advantages of international business
- Economies of scale. Selling in many countries raises output. Fixed costs of research, design and advertising are spread over larger sales, so cost per unit falls.
- Economies of scope. A global firm can use the same brand, technology and distribution system for many products and markets.
- Location advantages. A global firm can do each activity where it is cheapest or best. It may design in one country, make parts in another and assemble in a third.
- Global sourcing. It can buy raw materials, parts and services from the best suppliers anywhere, which lowers cost and raises quality.
- Technology and innovation. Large international sales pay for research. Ideas developed in one market can be used in all others.
- Global brand. A brand known across countries attracts customers and travellers everywhere and reduces marketing cost.
- Learning across markets. Operating in many countries exposes the firm to new ideas, customer needs and competitors. It can carry the best practice from one country to the rest.
- Access to finance. International firms can raise money in global capital markets, often at lower cost.
- Spreading of risk. A fall in demand in one country can be balanced by growth in another. Seasonal or cyclical swings are smoothed.
- Network flexibility. A firm with units in several countries can shift production when costs, exchange rates or tariffs change.
- Bargaining power. A large global buyer can negotiate better prices from suppliers and better terms from governments.
Porter's diamond
Michael Porter, in The Competitive Advantage of Nations (1990), explained why firms from some countries succeed in particular industries. He named four determinants:
- Factor conditions, such as skilled labour, infrastructure and research capacity;
- Demand conditions, such as a large and demanding home market;
- Related and supporting industries, such as strong local suppliers; and
- Firm strategy, structure and rivalry, since strong competition at home makes firms fit for world markets.
Chance and government influence all four. For example, India's large pool of English-speaking engineers (a factor condition) and fierce competition among its IT firms helped them become strong exporters.
Generic strategies in a global setting
Porter's generic strategies apply worldwide. A firm may seek cost leadership, as many contract manufacturers do. It may seek differentiation through design, quality or brand. Or it may focus on a narrow segment, such as a niche product sold in many countries.
India's competitive advantages
- Services. India's services exports reached USD 421.3 billion in 2025-26. Its share of world commercial services exports rose from 2 per cent in 2005 to 4.3 per cent in 2024.
- Skilled people. A large, young, technically trained workforce supports IT, engineering and research services.
- Large home market. A big domestic market lets Indian firms reach scale before going abroad.
- Digital public infrastructure. Systems such as the Unified Payments Interface lower the cost of doing business.
- Trade agreements. Agreements with partners such as the UAE, Australia, the EFTA countries and the United Kingdom give Indian exporters lower tariffs.
Sustaining competitive advantage
An advantage based only on cheap labour can be copied or lost when wages rise. Lasting advantage comes from things rivals find hard to copy, such as technology, skills, brands, quality systems and customer relationships. Firms must keep investing in research, training and branding.
Summary table
| Source of advantage | How it helps in a global setting |
|---|---|
| Scale and scope | Lower cost per unit |
| Location and sourcing | Each activity done where best |
| Technology and learning | Better products, faster innovation |
| Brand | Customer trust across countries |
| Risk spreading and flexibility | Stable earnings, quick response to change |
Conclusion. Competitive advantage in a global setting is a firm's ability to beat the world's best rivals on cost or on value. International operations add advantages of scale, location, global sourcing, technology, brand, learning, finance and risk spreading. Porter's diamond explains how a nation's conditions shape these advantages, and India's strength in services shows them at work. To keep its edge, a firm must build advantages that rivals cannot easily copy.
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