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B.B.A. LL.B. (Five Years) Sem 4 International Business 2024 Mar Question Paper with Solutions

KSLU Solved Question Papers

International Business

Previous Year Question Paper with Solution

B.B.A. LL.B. (Five Years) · Sem 4

2024 Mar Examination

munotes.in

Mumbai

First published on munotes.in on 21 October 2026.

Published by munotes.in, Mumbai.

Model answers written and edited by the munotes.in editorial desk.

Passages from this volume may be quoted, in print, online or by an AI system, with credit: name munotes.in and link to this volume's page. The volume may not be reproduced as a whole. Full terms at munotes.in/content-license.

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The University does not publish an official answer key for this paper. The answers in this volume are model answers, written to show how a full-mark answer is built. They are a study aid, not an authority on what an examiner marked.

The question paper reproduced here is the paper as set by Karnataka State Law University at the 2024 Mar examination.

The questions below are the paper as Karnataka State Law University set it at the 2024 Mar examination, in the order it was set.

MarksPage

The Paper as Set

The questions in this volume are the questions asked at the 2024 Mar 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 3 hours · Total marks 80 · 20 questions answered

Instructions printed on the paper

N.B. (1) Answer any 5 questions from group (a) each question carries 10 marks. (2) Answer any 5 questions from group (b) each question carries 6 marks. (3) Figures to the right indicate marks. (4) Answer should be written either in English or Kannada Completely.

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.

Read the original question paper

Q1

Unit I

(a)Differentiate between International Business and Domestic Business.[10]

Answer

For full marks, cover: the meaning of domestic business and of international business; the points of distinction (area of operation, currency, laws, culture, market size, competition, risk, documents and procedures, transport, capital needed, government role, research needs); the similarities; a worked example of the same sale made at home and abroad; why the differences matter; a comparison table; and a conclusion.

Meaning

Domestic business is buying, selling, producing and investing within the borders of one country. All parties are from the same country and work under the same laws and currency.

International business is business activity that crosses national borders. It includes exports and imports of goods and services, foreign investment, licensing and the work of multinational firms. At least two countries, and often more, are involved.

Points of distinction

Area of operation. Domestic business works within one country. International business covers two or more countries.
Currency. Domestic business uses one currency. International business deals in several currencies, so it faces exchange rate risk.
Laws and rules. Domestic business follows one set of laws. International business must follow the laws of every country involved, besides international rules such as those of the WTO. In India, foreign trade is governed by the Foreign Trade (Development and Regulation) Act, 1992 and the Foreign Exchange Management Act, 1999.
Culture and language. Domestic customers share a common culture. International business must deal with different languages, tastes, religions and customs.
Size of market. The domestic market is limited. The international market is far larger.
Competition. Domestic firms mainly face local rivals. International firms face the world's best competitors.
Risk. International business carries extra risks: currency, political, payment and transport risks.

Documents and procedures. International business needs extra documents, such as the Importer-Exporter Code, shipping bills, bills of lading and certificates of origin, and customs clearance.
Transport. International trade usually involves longer distances, sea or air freight and higher costs.
Capital and resources. International business usually needs more money, skill and time.
Role of government. Governments regulate foreign trade more closely, through tariffs, quotas and foreign exchange rules, and also promote it through export incentives.
Market research. Studying a foreign market is harder and costlier than studying the home market.

Similarities

Both kinds of business share the same basic aim: to earn profit by meeting customers' needs. Both need good products, sound finance, efficient production and honest dealing. The basic functions of management, such as planning, organising and control, apply to both. International business is therefore an extension of domestic business, not a different activity altogether.

A worked example

Suppose a Mysuru firm sells silk sarees. A sale to a shop in Chennai is domestic business. The firm invoices in rupees, follows Indian law, sends the goods by road and is paid through an Indian bank. Now suppose it sells the same sarees to a shop in Dubai. It needs an Importer-Exporter Code and must file a shipping bill with customs. It invoices in a foreign currency or agrees on rupee settlement, and must bring the money into India within the time the RBI allows. It must meet the buyer country's labelling rules, arrange freight and insurance, and may ask for a letter of credit to secure payment. The product is the same, but the process is far more complex.

Why the differences matter

These differences explain why a firm cannot simply copy its home methods abroad. It must study foreign laws and customers, plan for currency and payment risk, and learn new procedures. It also explains why governments give exporters special help, such as export credit insurance and refunds of taxes.

Advantages of international business over domestic business

Larger market. The firm can sell to customers in many countries.

Economies of scale. Larger output lowers the cost of each unit.
Spread of risk. A slowdown at home can be balanced by sales abroad.
Use of surplus capacity. Spare output can be sold abroad.
Foreign exchange and prestige. Exports earn foreign currency and raise the firm's standing.

Extra challenges of international business

Currency swings can change profits between contract and payment.
Political events abroad can disrupt trade or investment.
Distance raises freight costs and delays.
Disputes are harder to settle when the buyer is in another country.
Rules change often, at home and abroad, so the firm must keep up to date.

Comparison table

Point	Domestic business	International business
Area	One country	Two or more countries
Currency	One	Several
Laws	One set	Many, plus international rules
Culture	Common	Varied
Risk	Lower	Higher (currency, political, payment)
Documents	Few	Many, including customs papers
Market size	Limited	Very large

Conclusion. Domestic business works within one country's borders, currency and laws, while international business crosses borders and faces several currencies, legal systems and cultures. International business offers a larger market but brings more risk, more procedures and stronger competition. A firm moving abroad must prepare for these differences.

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