KSLU Solved Question Papers
International Business
Previous Year Question Paper with Solution
B.Com. LL.B. (Five Years) · Sem 4
2015 Jun Examination
munotes.in
Mumbai
B.Com. LL.B. (Five Years) Sem 4 International Business 2015 Jun Question Paper with Solutions
First published on munotes.in on 21 October 2026.
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Model answers written and edited by the munotes.in editorial desk.
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The question paper reproduced here is the paper as set by Karnataka State Law University at the 2015 Jun examination.
Contents
The questions below are the paper as Karnataka State Law University set it at the 2015 Jun examination, in the order it was set.
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the 2015 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 · 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.
Q1Explain the growing economic power of developing countries.[10]
Answer
For full marks, cover: who the developing countries are; the evidence of their growing economic power (trade, foreign investment, services, reserves and remittances, their own multinationals, large markets, regional agreements, voice in global bodies, South-South cooperation), with official figures and India's example; the reasons for their rise; the limits of that power; what it means for international business; a table; and a conclusion.
Who are the developing countries?
Developing countries are countries with lower average incomes and less industrial development than the rich countries of North America, Western Europe and Japan. They include large emerging economies such as India, China, Brazil, Indonesia and South Africa. They also include many smaller and least developed countries in Asia, Africa and Latin America. Together they are often called the Global South.
For most of the twentieth century, they mainly exported raw materials and played a small role in world business. Since about 1980, many of them have grown fast and become important players. The World Bank calls the countries that broke into world markets for manufactures and services after 1980 the "new globalizers".
Evidence of their growing economic power
- Larger share of world trade. Developing countries now export manufactured goods and services, not just raw materials. India's share of world merchandise exports rose from 1 per cent in 2005 to 1.8 per cent in 2024. Its share of commercial services exports rose from 2 to 4.3 per cent.
- Main destination of foreign investment. According to UNCTAD's World Investment Report 2026, developing economies received more than half of global foreign direct investment in 2025, about USD 901 billion. Developing Asia alone received USD 644 billion.
- Strength in services. India's services exports reached USD 421.3 billion in 2025-26, almost equal to its merchandise exports.
- Strong reserves and remittances. India's foreign exchange reserves were USD 701.4 billion on 16 January 2026. India is also the world's largest recipient of remittances, about USD 135.4 billion in 2024-25 (provisional).
- Their own multinationals. Firms from developing countries now invest abroad. For example, Infosys operated in 292 locations across 59 countries in March 2025.
- Large markets and workforces. The SAARC region alone has nearly 1.9 billion people, about 24 per cent of the world's population. Large, young populations make these countries both big markets and big sources of labour.
- Regional agreements. Developing countries are building their own trade blocs. The African Continental Free Trade Area began trading on 1 January 2021. ASEAN members are part of the RCEP, in force since 1 January 2022.
- Greater voice in global bodies. The African Union became a permanent member of the G20 at the New Delhi Summit in September 2023, on India's proposal. BRICS expanded from 2024, adding Egypt, Ethiopia, Iran and the UAE, and Indonesia in 2025. In the WTO, members announce for themselves whether they are developing countries. Those that do can use special provisions, such as more time to carry out commitments.
- South-South cooperation. Developing countries now lend to and invest in one another. India's EXIM Bank extends lines of credit to partner countries under a scheme first formulated in 2003-04.
Reasons for their rise
- Economic reforms and opening to trade and investment, as in India after 1991.
- Young, growing populations and expanding middle classes.
- Better education and skills, especially in technology.
- The spread of global value chains, which lets them join production one stage at a time.
- Cheaper communication and transport, and digital technology.
- Higher investment in infrastructure.
Limits of their power
- Uneven gains. Least developed countries received only about 2.7 per cent of global FDI in 2025.
- Poverty and inequality. Many people in developing countries remain poor.
- Dependence on commodities. Many smaller countries still rely on a few primary exports and suffer when prices fall.
- Technology gap. Advanced research, patents and top brands remain concentrated in rich countries.
- Debt and financial risk. Many are exposed to capital outflows and debt problems.
What this means for international business
Firms now see developing countries as their main growth markets, production bases and sources of talent. Competition increasingly comes from developing-country firms too. Trade and investment rules are being shaped more by developing countries, through bodies such as the G20, BRICS and regional blocs.
Summary table
| Indicator | Evidence |
|---|---|
| Foreign investment | More than half of global FDI in 2025 (about USD 901 billion) |
| Trade share (India) | Merchandise 1.8 per cent, services 4.3 per cent in 2024 |
| Reserves (India) | USD 701.4 billion, January 2026 |
| Global voice | African Union in G20 (2023); BRICS expansion (2024-25) |
| Own multinationals | Indian firms operating in dozens of countries |
Conclusion. Developing countries have become a major force in the world economy. They take a growing share of world trade and receive more than half of global foreign investment. They lead in services such as India's IT exports, hold strong reserves and run their own multinationals. They also have a larger voice in the G20, BRICS and the WTO. Their power is still uneven and limited by poverty, commodity dependence and the technology gap, but their rise has reshaped international business.
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