KSLU Solved Question Papers
International Business
Previous Year Question Paper with Solution
B.Com. LL.B. (Five Years) · Sem 4
2026 Jan Examination
munotes.in
Mumbai
B.Com. LL.B. (Five Years) Sem 4 International Business 2026 Jan 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 2026 Jan examination.
Contents
The questions below are the paper as Karnataka State Law University set it at the 2026 Jan examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the 2026 Jan 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 all five Units. (2) One essay type question and short note is compulsory from each Unit. (3) Figures to the right indicate marks. (4) Answer should be written either in English or in 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.
Q1
Unit 1
(a)Give a brief account of the strategic decisions in International Business.[10]
Answer
For full marks, cover: the meaning and features of a strategic decision; the main strategic decisions a firm takes in international business (whether to go abroad, which market, when, how to enter, at what scale, what to sell and how, where to produce, how to own and control, how to organise, how to finance and manage risk, whom to employ); the factors that shape them; a short worked example; the risks of getting them wrong; and a conclusion.
Meaning of a strategic decision
A strategic decision is a long-term choice that commits a large part of a firm's resources and shapes its future position. In international business, these are the choices that decide where, how and on what terms a firm will do business outside its home country.
Strategic decisions have four features. They are taken by top management. They involve large sums of money. They are difficult and costly to reverse. They affect every department of the firm, from production to finance. Day-to-day choices, such as the price of one shipment, are operational decisions and not strategic ones.
The main strategic decisions in international business
- Whether to go international at all. The firm first asks whether foreign markets fit its goals. Reasons include a saturated home market, spare capacity, higher prices abroad and the wish to spread risk. A firm with weak finances may decide to wait.
- Which market to enter. The firm screens countries on market size, income, growth, competition, distance, culture and trade barriers. A trade agreement can make one market more attractive. For example, India's agreement with the UAE came into force on 1 May 2022 and lowered tariffs for Indian exporters there.
- When to enter. An early entrant can build a brand before rivals arrive. A late entrant can learn from the mistakes of others and enter at lower cost. Timing also depends on the economic cycle and exchange rates.
- How to enter (the entry mode). The firm chooses among exporting, licensing, franchising, contract manufacturing, a joint venture, a wholly owned subsidiary, or an acquisition. Each mode gives a different mix of control, cost and risk.
- At what scale. The firm may enter in a small way to test the market, or on a large scale to win market share quickly. A large-scale entry shows commitment but raises the money at risk.
- What to sell and how (product and marketing). The firm decides whether to sell the same product everywhere (standardisation) or change it for each market (adaptation). It also decides on price, brand, packaging, distribution and promotion.
- Where to produce and source. The firm decides whether to make goods at home and export them, or to produce abroad. It also decides where to buy parts and materials. Labour cost, skills, infrastructure, tariffs and incentives guide this choice.
- Ownership and control. The firm decides how much of a foreign unit it will own. Full ownership gives full control and all the profit. A partner brings local knowledge but shares control and profit. The host country's foreign investment rules may also limit the choice.
- Organisation structure. The firm decides how to organise its foreign work. It may use an export department, an international division, or regional or global product divisions. The structure decides who takes decisions and how fast.
- Finance and risk management. The firm decides how to fund foreign operations, in which currency to invoice, and how to cover exchange rate and political risks. It may use export credit insurance and forward contracts.
- People. The firm decides whether to send managers from home or hire local managers. This affects cost, local knowledge and the culture of the firm.
The decisions at a glance
| Strategic decision | The question it answers | An example of a choice |
|---|---|---|
| Going international | Should we go abroad at all? | Yes, because the home market is saturated |
| Market selection | Which country first? | The UAE, a nearby market with lower tariffs |
| Timing | Now or later? | Enter before a rival brand arrives |
| Entry mode | How do we enter? | Exporting first, then a joint venture |
| Marketing mix | Same product or a changed one? | Adapt packaging and labels to local rules |
| Strategic decision | The question it answers | An example of a choice |
|---|---|---|
| Location | Where do we produce? | At home, with assembly abroad later |
| Ownership | How much do we own? | A majority stake with a local partner |
| Finance and risk | How do we fund it and cover risk? | Invoice in US dollars and buy forward cover |
Factors that shape these decisions
The decisions depend on the firm's own resources, such as money, technology, brand and managers. They also depend on the foreign market's size, competition and stability. Government policy matters at both ends. The home country may give export incentives. The host country may set tariffs, foreign investment limits and quality rules. Culture, language and distance affect how easily the firm can operate.
A short worked example
Suppose a Bengaluru firm makes herbal skin-care products. It first decides to go abroad because domestic competition is intense. It picks the UAE because of the large Indian community and lower tariffs. It enters by exporting through a distributor, which keeps the risk low. It keeps the product the same but changes labels to meet local rules. After three years of steady sales, it may form a joint venture to make the products locally. Each of these steps is a strategic decision.
Risks of a wrong strategic decision
A wrong decision is costly because it is hard to reverse. A firm that enters a market without research may face low demand or strong rivals. A firm that chooses the wrong partner may lose control of its brand or technology. Political change or a sharp fall in the currency can wipe out profits. Good research, careful planning and an entry in stages reduce these risks.
Conclusion. Strategic decisions in international business are the long-term choices about whether to go abroad, which market to enter, and when and how to enter it. They also cover what to sell, where to produce, how much to own, and how to organise, finance and staff the venture. They are taken by top management, commit large resources and are hard to reverse. Because every later operation depends on them, a firm must base them on careful research into its own strengths and the foreign environment.
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