KSLU Solved Question Papers
International Business
Previous Year Question Paper with Solution
B.B.A. LL.B. (Five Years) · Sem 4
2019 Jun (70 marks) Examination
munotes.in
Mumbai
B.B.A. LL.B. (Five Years) Sem 4 International Business 2019 Jun (70 marks) Question Paper with Solutions
First published on munotes.in on 2 November 2026.
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The question paper reproduced here is the paper as set by Karnataka State Law University at the 2019 Jun (70 marks) examination.
Contents
The questions below are the paper as Karnataka State Law University set it at the 2019 Jun (70 marks) examination, in the order it was set.
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the 2019 Jun (70 marks) 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.
Total marks 70 · 12 questions answered
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.
Q1Why international business is not a bed of roses ? Explain with suitable example.[10]
Answer
For full marks, cover: what the statement means in international business; the rewards that attract firms abroad; the main difficulties (political, policy and trade barrier, exchange rate, payment, legal, cultural, competitive, logistical, compliance and institutional problems), each with a suitable example; how firms manage these thorns; a short assessment; and a conclusion agreeing that international business is not a bed of roses.
Meaning of the statement
"Life is not a bed of roses" means that life is not always easy or comfortable. Applied to international business, it means that selling and investing abroad bring real rewards but also many difficulties and risks. A firm that expects only easy profits from foreign markets is likely to fail. The statement is broadly true, as the points below show.
The roses: why firms still go abroad
International business offers larger markets, higher sales, economies of scale, access to cheaper inputs and new technology, and a spread of risk across countries. India's own record shows the rewards. Its total exports of goods and services reached a record USD 863.1 billion in 2025-26. These rewards explain why firms accept the thorns.
The thorns: why it is not a bed of roses
- Political risk. A change of government, a war or tension between countries can change the rules overnight. For example, since April 2020 India has required government approval for investment from any country that shares a land border with it. Firms from those countries had to change their plans.
- Sudden trade barriers. A major buyer may raise tariffs without warning. In November 2025, the Government of India approved an Export Promotion Mission. It gives priority to textiles, leather, gems and jewellery, engineering goods and marine products, the sectors hit by recent global tariff increases.
- Exchange rate risk. Exports are usually priced in foreign currency. If the rupee rises against that currency before payment arrives, the exporter receives fewer rupees and profit shrinks. Importers face the opposite risk.
- Payment risk. A foreign buyer may delay payment or fail to pay. Recovering money through foreign courts is slow and costly. This is why India has a specialised export credit insurer, ECGC, set up in 1957, to cover exporters against non-payment for commercial and political reasons.
- Changing rules at home. Even home rules change often. For instance, the time limit for bringing export proceeds into India was changed several times by the RBI in 2025 and 2026. Under the regulations in force from 1 October 2026, it is nine months from shipment.
- Legal differences. Each country has its own contract, labour, tax, consumer and product laws. A product that is legal in India may need fresh approval, testing or labelling elsewhere.
- Cultural differences. Language, religion, tastes and business customs differ. A brand name, colour or advertisement that works in India may confuse or offend buyers in another country.
- Strong competition. A firm abroad competes with local firms that know the market and with global giants that have bigger budgets and brands.
- Distance and logistics. Long transport routes raise freight costs, insurance and delays. Perishable goods may spoil on the way.
- Heavy documentation and compliance. An Indian exporter needs an Importer-Exporter Code, a registration certificate, export documents, customs clearance and foreign exchange reporting. It must also meet the buyer country's rules.
- Weak international institutions. Disputes between countries are harder to resolve today. The WTO's Appellate Body has been unable to hear appeals since December 2019 because its vacancies have not been filled. Regional groups can also stall, as SAARC has, with intra-regional trade still below 6 per cent.
- Protection of technology and brands. In some countries, patents and trademarks are poorly enforced, so a firm's designs may be copied.
Removing the thorns
- Research before entry. Firms study the market, laws and culture before they invest.
- Starting small. They begin with exports or a local partner and grow step by step.
- Insurance and hedging. They insure against payment risk and use forward contracts against currency risk.
- Spreading markets. They sell in several countries so that trouble in one does not ruin the business.
- Using government support. Indian exporters can use EXIM Bank finance, ECGC cover, trade agreements and schemes under the Foreign Trade Policy 2023.
- Local talent. They hire local managers and advisers who understand the market.
Assessment
The statement is true but incomplete. International business is full of thorns, yet the roses are real, and well-prepared firms gather them. The difference between success and failure lies in preparation, patience and risk management.
Conclusion. International business is not a bed of roses. It brings political, trade, currency, payment, legal, cultural, competitive and logistical risks, and its rules keep changing. Yet it also offers larger markets, scale and growth, as India's record exports show. A firm that researches carefully, starts in stages and manages its risks can enjoy the roses while avoiding most of the thorns.
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