End Term Examination - EMBA Spring 2020

End Term Examination, Spring 2020
Course: International Business Full Mark: 70

Level : Masters
Pass Mark: 42
Program: EMBA Time: 3 hrs.
______________________________________________________________________________
Try to be direct, original and specific with your answers as far as possible. Manage your time
thoughtfully so that you are able to complete the paper within the set timeframe. Figures
enclosed in the brackets indicate full marks for respective questions.
Section A
Attempt all FIVE questions [10 * 5 = 50 Marks]
1. “Ultimately, the study of international business is no different from the study of domestic
business. Thus, there is no point in having a separate course on international business.”
Evaluate this statement.
2. In the recent times the world is experiencing globalization from late 1980s to DE
globalization to localization due to nationalistic feeling, COVID-19 pandemic and geo-
political tensions. In this scenario, what can you predict the future of globalization and
free trade? What do you suggest Nepal to adopt; free or restricted trade?
OR
Former USA President Donald Trump commented that World Trade Organization
(WTO) is disastrous. Why did he say so? Critically analyze the future role of WTO and
multilateral trade?
3. Discuss the theories of international trade. Critically analyze the theory/theories that are
practiced and prevalent in the present day global scenario. Do you feel that the theories
need to be studied in future as well? Why?
4. A manager must consider different dimensions of political, legal, economic, financial and
socio-cultural risk before entering a country and during the course of business as well.
Give your suggestion for country risk analysis to a manager who is thinking to enter a
country in near future.
5. It is often said that a manager must take into account and consider exchange rate in doing
international business. It is further said that it is one of the most important risk that a
manager would encounter in international business. Why do think a manager must
understand and study determinants of foreign exchange?
1
End term examination – EMBA Spring 2020
Section B
6. Read the case carefully and answer the questions that follow [20 Marks]
AFC was brought in Nepal on November 23, 2009 by Pravani International. It was
among the first multinational chain of restaurants coming to Nepal. Pravani International
along with YUM Brands, the world’s largest restaurant company with five dynamic
global brands and 35,000 outlets across 105 countries, enter the Nepalese restaurant circle
with the belief that consumers in Nepal are ready for international eating-out experience.
They launched their first two outlets at Durbar Marg, Kathmandu. Nepal is a promising
market for these brands to succeed and their entry will give the Nepali economy a boost
by creating job opportunities for locals.
After a year of establishing a franchise they were already considering of starting another
the first international chain of restaurants Pizza Cap. It can be noticed that the quality of
international franchise has been maintained by it. Further, the menu has been adapted
according to the need of local market. With the more than 80 percent of people of Nepal
don’t eat beef or pork because of their religious belief, so the menu has been designed in
a way that all the customer can order something from the menu. However, Nepal's four
AFC and Pizza Cap restaurants have shut down indefinitely following a dispute over
working hours in the wake of devastating earthquakes, the local franchisee.
Pravani International, which operates the US fast-food outlets in Nepal, said the
restaurants closed in Kathmandu on May 13, 2015 after a scuffle allegedly broke out
between workers and managers. “We have been suffering from labour problems for five
years and it has crossed our tolerance levels. Said the manager.
In August 13, 2012, the restaurants closed down temporarily for 35 days. “As some staff
members have been beating up their senior managers, threatening them to take their life
and refusing to take instructions from the management, we are forced to shut down our
services for an indefinite period under existing Labor Act,” Krishna Kumar, country
director of Pravani International Nepal, said in the statement. Pravani International Nepal
had said that workers will not be paid for the closure period. At the period, the company
employs 180 people.
“As long as the government fails to address the issues of the trade union, no multinational
will come to invest in Nepal,” said an entrepreneur. “If our trade unions continue to
threaten the multi- nationals, they will repatriate their investment, which will cause a
major crisis to Nepal.”
2
Questions:
a. Analyze the socio-cultural environment of Pravani International.

b. What are the proactive policies and strategies you advise to manage trade union
disputes in franchise business in Nepal? Express your arguments "whether trade
union should exist in private sector or nor.”
All the Best!
3

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End Term Examination, Spring 2020

Course: International Business Full Mark: 70

a. Analyze the socio-cultural environment of Pravani International.

All the Best!

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