1. (a) MNC
(b) Significance of international business.
(c) International accounting.
(d) IMF.
(e) SDRs
(f) Concept of International Trade.
2. What is the significance of international business?
3. State the strategies involved in managing a global firm.
4. Discuss the role of IBRD in the promotion of world trade.
5. Describe the functions of WTO.
6. State the theories related to cross cultural management in international business.
7. What are the advantages of MNCs to host countries?
8. Case Study:
In the last decade, the Indian animation industry witnessed high growth rates largely due to
some inherent strengths and the cost advantage that it offered. The companies were adopting
different business models, and experts believed that many of these companies were moving up
the value chain. However, they felt that the Indian animation industry had a lot of bottlenecks
and that Indian animation companies had some weaknesses as well. In such a scenario, the
Indian animation companies had to make the right strategic moves in order to tap the full
potential of the market.
In November 2008, NASSCOM announced that the Indian animation industry was poised for
significant growth in the coming years. The industry was expected to record US$1163 million
by 2012, as against the projected US$460 million by the end of 2008, reporting a CAGR of 27
percent, according to a report jointly prepared by NASSCOM and Ernst and Young. There were
several movies slated for release in 2009 including big budget movies like "Sultan-The
Warrior", "Coochie Coochie Hota Hai" and a few more.
The entry of big players into the animation industry served to encourage the animation studios
in India, which were hoping to get both investment and more and more original and varied
content that would suit the global audience.
Experts felt that the Indian animation industry had gained significant momentum in the 1990s
and the 2000s. It had witnessed the entry of many new players and many of the companies
were moving up the value chain. These companies were adopting different business models in
their bid to take advantage of the huge scope for growth in the industry (Refer to Exhibit III for
the business models adopted by the Indian players). While the projections for growth were good
and some experts felt that the Indian animation companies had some strengths, others pointed
out to weaknesses which could prevent the companies from tapping the full potential of the
global animation industry. Industry experts pointed out that Indian players still accounted for
only a minuscule share of the global animation industry. Turning Point was in the 1990s that
the Indian animation industry witnessed a boom. Ram Mohan and Sako were determined to
make the animated series based on the Ramayana and so Ram Mohan traveled to Japan to
make it happen.
(D2EMB 12)
Indian animation Gains Momentum. the low entry barrier and the lure of easy dollars that
could be earned by providing cut-price work for the animation studios from the West
resulted in several small companies crowding the Indian animation industry. The Indian film
industry, which is the second largest in the world, was not involved in animation in a big way.
It had been using animation to a limited extent in live action movies, mostly in the form of
visual effects. The Indian animation industry had been growing at exceptional rates since the
late 1990s, but experts felt that some serious challenges remained in the way of sustaining
such growth rates. A major challenge for the industry was the skilled manpower crunch. Even
though India had a large English speaking labor force, tere was a dearth of readily employable
skilled animators. Industry experts felt that while the growth of the animation industry in
India had been phenomenal, there was an opportunity for it to grow even more. The low cost of
production was a huge advantage. For instance, the production cost of a half-hour animated
movie in India cost around US$60-70,000 while in the US, it was around US$250,000-300,000,
according to NASSCOM’s analysis.
(a) Explain the favorable Conditions for Indian animation industry.
(b) Discuss the role of human resource in developing international business for Indian
animation industry.

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