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  • UGC NET MBA Unit-9 MCQs

    International Business, WTO, Financial Institutions, and IT in Management

    SECTION A – INTERNATIONAL BUSINESS AND GLOBALIZATION

    1. International Business refers to:
    A. Business transactions that occur within one country
    B. Business transactions that cross national borders
    C. Government trade only
    D. None
    Answer: B
    Explanation: International business includes trade, investment, and other commercial activities across countries.*

    2. The major driver of globalization is:
    A. Technological innovation
    B. Tariff barriers
    C. Bureaucracy
    D. Protectionism
    Answer: A

    3. Which of the following is not a characteristic of globalization?
    A. Free flow of goods and services
    B. Integration of markets
    C. Protectionism and isolation
    D. Flow of information
    Answer: C

    4. A firm’s internationalization begins with:
    A. Domestic sales
    B. Exporting
    C. Mergers
    D. Outsourcing
    Answer: B

    5. The globalization of production means:
    A. Sourcing goods and services from worldwide locations
    B. Exporting only
    C. Manufacturing domestically
    D. Selling globally only
    Answer: A

    6. Globalization leads to:
    A. Increased interdependence among nations
    B. Less competition
    C. Reduced trade
    D. None
    Answer: A

    7. Which of the following is an example of a global firm?
    A. Coca-Cola
    B. State Bank of India
    C. Local co-operative
    D. None
    Answer: A

    8. Outsourcing is:
    A. Subcontracting business functions to external providers
    B. Hiring permanent staff
    C. In-house production
    D. None
    Answer: A

    9. The term “Glocalization” means:
    A. Think globally, act locally
    B. Act globally, think domestically
    C. Ignore local needs
    D. None
    Answer: A

    10. Which of the following is a challenge of globalization?
    A. Cultural diversity and competition
    B. Access to new markets
    C. Free flow of technology
    D. Economic growth
    Answer: A

    🔹 SECTION B – THEORIES OF INTERNATIONAL TRADE

    11. The theory of Absolute Advantage was given by:
    A. David Ricardo
    B. Adam Smith
    C. Eli Heckscher
    D. Michael Porter
    Answer: B

    12. Comparative Advantage theory is based on:
    A. Opportunity cost
    B. Equal efficiency
    C. Exchange rate
    D. Labour theory only
    Answer: A

    13. Heckscher–Ohlin theory explains trade on the basis of:
    A. Factor endowment
    B. Absolute cost
    C. Product differentiation
    D. Exchange rate
    Answer: A

    14. The Leontief paradox contradicted:
    A. Heckscher–Ohlin theory
    B. Mercantilism
    C. Comparative advantage
    D. Product life cycle theory
    Answer: A

    15. Product Life Cycle Theory was given by:
    A. Raymond Vernon
    B. Michael Porter
    C. Paul Krugman
    D. David Ricardo
    Answer: A

    16. According to Product Life Cycle Theory, production moves to developing countries in:
    A. Standardization stage
    B. Introduction stage
    C. Growth stage
    D. Decline stage
    Answer: A

    17. Porter’s Diamond model includes all except:
    A. Demand conditions
    B. Factor conditions
    C. Cultural barriers
    D. Firm strategy and rivalry
    Answer: C

    18. Mercantilists believed that:
    A. Exports should exceed imports
    B. Imports should exceed exports
    C. Trade balance doesn’t matter
    D. None
    Answer: A

    19. Comparative advantage suggests:
    A. Mutual benefits from specialization
    B. Protectionism
    C. Equal output across nations
    D. None
    Answer: A

    20. The modern trade theories emphasize:
    A. Innovation and economies of scale
    B. Gold reserves
    C. Colonial control
    D. None
    Answer: A

    🔹 SECTION C – BALANCE OF PAYMENTS (BoP)

    21. Balance of Payments is a record of:
    A. All economic transactions between a country and the rest of the world
    B. Only visible trade
    C. Only imports and exports
    D. None
    Answer: A

    22. The Current Account includes:
    A. Trade in goods and services
    B. Loans and investments
    C. Reserve changes
    D. None
    Answer: A

    23. The Capital Account records:
    A. Foreign investments and loans
    B. Merchandise exports
    C. Transfer payments
    D. None
    Answer: A

    24. BoP surplus means:
    A. Inflows exceed outflows
    B. Outflows exceed inflows
    C. No balance
    D. None
    Answer: A

    25. Persistent BoP deficit leads to:
    A. Depletion of foreign exchange reserves
    B. Increase in exports
    C. Currency appreciation
    D. None
    Answer: A

    26. Devaluation of currency helps in:
    A. Making exports cheaper
    B. Making imports cheaper
    C. Reducing exports
    D. None
    Answer: A

    27. Official reserve account records:
    A. Transactions of central bank in foreign exchange
    B. Private capital flows
    C. Transfers
    D. None
    Answer: A

    28. Invisible items in BoP refer to:
    A. Services and transfers
    B. Physical goods
    C. Machinery only
    D. None
    Answer: A

    29. Capital flight means:
    A. Sudden withdrawal of foreign capital
    B. Import boom
    C. Export subsidy
    D. None
    Answer: A

    30. A surplus in current account with deficit in capital account indicates:
    A. Net balance depends on magnitude of both
    B. Overall surplus always
    C. Always deficit
    D. None
    Answer: A

    🔹 SECTION D – FOREIGN DIRECT INVESTMENT (FDI)

    31. FDI involves:
    A. Long-term investment with control in foreign business
    B. Portfolio investment only
    C. Buying bonds
    D. None
    Answer: A

    32. Greenfield FDI means:
    A. Setting up new facilities from scratch
    B. Acquiring existing foreign companies
    C. Portfolio purchase
    D. None
    Answer: A

    33. Horizontal FDI refers to:
    A. Same industry abroad as home country
    B. Different industry
    C. Raw material industry
    D. None
    Answer: A

    34. Vertical FDI refers to:
    A. Investment in supply chain industries abroad
    B. Same product
    C. Service industry
    D. None
    Answer: A

    35. FDI benefits the host country by:
    A. Bringing capital, technology, employment
    B. Reducing competition
    C. Restricting exports
    D. None
    Answer: A

    36. A potential cost of FDI is:
    A. Repatriation of profits
    B. Technology transfer
    C. Employment generation
    D. None
    Answer: A

    37. Determinant of FDI inflow:
    A. Market size, infrastructure, political stability
    B. Isolation and tariff barriers
    C. None
    Answer: A

    38. Joint ventures involve:
    A. Shared ownership between foreign and local partners
    B. 100% ownership
    C. Licensing
    D. None
    Answer: A

    39. Portfolio investment differs from FDI as:
    A. It lacks control and is short-term
    B. It ensures management control
    C. It is only in bonds
    D. None
    Answer: A

    40. FDI in India is regulated under:
    A. FEMA, 1999
    B. MRTP Act
    C. Companies Act
    D. None
    Answer: A

    🔹 SECTION E – WTO AND MULTILATERAL TRADE

    41. WTO was established in:
    A. 1995
    B. 1947
    C. 1991
    D. 1985
    Answer: A

    42. GATT was replaced by:
    A. WTO
    B. IMF
    C. UNCTAD
    D. None
    Answer: A

    43. Headquarters of WTO:
    A. Geneva
    B. Washington D.C.
    C. New York
    D. Paris
    Answer: A

    44. WTO covers:
    A. Trade in goods, services, and intellectual property
    B. Agriculture only
    C. Tariff only
    D. None
    Answer: A

    45. The dispute settlement mechanism in WTO is:
    A. Binding on members
    B. Voluntary
    C. Ignored
    D. None
    Answer: A

    46. TRIPS Agreement deals with:
    A. Intellectual property rights
    B. Investment policy
    C. Services trade
    D. None
    Answer: A

    47. GATS stands for:
    A. General Agreement on Trade in Services
    B. General Agreement on Tariff Systems
    C. Global Agricultural Trade System
    D. None
    Answer: A

    48. TRIMS deals with:
    A. Investment-related measures
    B. Monetary control
    C. Environmental policy
    D. None
    Answer: A

    49. WTO’s main objective is to:
    A. Promote free and fair international trade
    B. Restrict trade
    C. Encourage protectionism
    D. None
    Answer: A

    50. AoA under WTO refers to:
    A. Agreement on Agriculture
    B. Arrangement on Aid
    C. Association of Allies
    D. None
    Answer: A

    SECTION F – INTERNATIONAL TRADE PROCEDURES & EXIM POLICY

    51. EXIM Policy stands for:
    A. Export-Import Policy
    B. Export Industry Model
    C. Exchange Management Plan
    D. None
    Answer: A
    Explanation: India’s EXIM Policy governs foreign trade — export promotion, import regulation, and trade facilitation.*

    52. The EXIM Policy in India is formulated by:
    A. Directorate General of Foreign Trade (DGFT)
    B. Ministry of Finance
    C. NITI Aayog
    D. RBI
    Answer: A

    53. The current EXIM Policy period in India generally covers:
    A. 5 years
    B. 1 year
    C. 10 years
    D. 3 years
    Answer: A

    54. The primary objective of India’s EXIM Policy is:
    A. Promote exports and reduce trade deficit
    B. Restrict imports
    C. Regulate domestic production
    D. None
    Answer: A

    55. EPCG Scheme under EXIM Policy allows:
    A. Duty-free import of capital goods for export production
    B. Import of consumer goods freely
    C. Tax exemption for software
    D. None
    Answer: A

    56. “Letter of Credit (L/C)” in export trade ensures:
    A. Payment security for exporter
    B. Free shipping
    C. Insurance coverage
    D. None
    Answer: A
    Explanation: A Letter of Credit is a bank’s guarantee ensuring payment once shipping conditions are fulfilled.*

    57. Bill of Lading serves as:
    A. Evidence of contract and title of goods
    B. Tax invoice
    C. Insurance policy
    D. None
    Answer: A

    58. Certificate of Origin certifies:
    A. The country where goods were manufactured
    B. Quality standards
    C. Port of shipment
    D. None
    Answer: A

    59. The term “EPC” stands for:
    A. Export Promotion Council
    B. Export Policy Code
    C. Exchange Price Certificate
    D. None
    Answer: A

    60. The Foreign Trade (Development & Regulation) Act was enacted in:
    A. 1992
    B. 1985
    C. 2000
    D. 1999
    Answer: A

    🔹 SECTION G – INTERNATIONAL FINANCIAL INSTITUTIONS

    61. IMF was established in:
    A. 1945
    B. 1947
    C. 1950
    D. 1965
    Answer: A

    62. Headquarters of IMF is located in:
    A. Washington D.C.
    B. Geneva
    C. London
    D. New York
    Answer: A

    63. IMF’s main objective is to:
    A. Promote exchange rate stability and global monetary cooperation
    B. Control global trade
    C. Provide development grants
    D. None
    Answer: A

    64. IMF provides:
    A. Short-term balance of payment assistance
    B. Long-term development loans
    C. Export finance
    D. None
    Answer: A

    65. The currency unit of IMF is:
    A. SDR (Special Drawing Rights)
    B. US Dollar
    C. Euro
    D. Pound
    Answer: A

    66. The World Bank primarily provides:
    A. Long-term development loans
    B. Short-term credit
    C. Trade insurance
    D. None
    Answer: A

    67. IBRD and IDA are part of:
    A. World Bank Group
    B. IMF
    C. WTO
    D. None
    Answer: A

    68. IFC stands for:
    A. International Finance Corporation
    B. Indian Finance Commission
    C. International Fund Council
    D. None
    Answer: A

    69. MIGA provides:
    A. Investment guarantees against political risk
    B. Export insurance
    C. Credit rating
    D. None
    Answer: A

    70. The Asian Development Bank (ADB) was established in:
    A. 1966
    B. 1945
    C. 1950
    D. 1990
    Answer: A

    🔹 SECTION H – INFORMATION TECHNOLOGY & MANAGEMENT SYSTEMS

    71. MIS stands for:
    A. Management Information System
    B. Managerial Investment Scheme
    C. Marketing Information Source
    D. None
    Answer: A

    72. MIS provides:
    A. Timely, relevant information for managerial decision-making
    B. Only accounting data
    C. Marketing research
    D. None
    Answer: A

    73. Key components of MIS are:
    A. Input, Processing, Output, Feedback
    B. Hardware only
    C. Software only
    D. None
    Answer: A

    74. The main goal of MIS is:
    A. Improve decision-making and control
    B. Replace management
    C. Increase manual work
    D. None
    Answer: A

    75. DSS stands for:
    A. Decision Support System
    B. Data Storage Software
    C. Design Simulation System
    D. None
    Answer: A

    76. A Decision Support System (DSS) is used for:
    A. Semi-structured and unstructured problems
    B. Routine transactions
    C. Accounting entries
    D. None
    Answer: A

    77. Expert systems are part of:
    A. Artificial Intelligence applications
    B. Data warehousing
    C. Database management
    D. None
    Answer: A

    78. TPS (Transaction Processing System) is used for:
    A. Routine, repetitive operations
    B. Strategic decisions
    C. Long-term forecasting
    D. None
    Answer: A

    79. MIS differs from DSS because:
    A. MIS provides regular reports; DSS supports analysis and simulation
    B. DSS is used only by top management
    C. Both are same
    D. None
    Answer: A

    80. ERP integrates:
    A. All functional areas of an organization using a common database
    B. Only HR activities
    C. Sales and Marketing only
    D. None
    Answer: A

    🔹 SECTION I – ARTIFICIAL INTELLIGENCE, BIG DATA & TECHNOLOGY

    81. Artificial Intelligence (AI) refers to:
    A. Simulation of human intelligence in machines
    B. Natural learning only
    C. Hardware systems
    D. None
    Answer: A

    82. A major area of AI application in management is:
    A. Predictive analytics
    B. Manual filing
    C. Typewriting
    D. None
    Answer: A

    83. Machine Learning is a subset of:
    A. Artificial Intelligence
    B. Big Data
    C. Blockchain
    D. None
    Answer: A

    84. Big Data refers to:
    A. Data sets with high Volume, Velocity, Variety, Veracity, and Value
    B. Only large files
    C. Historical archives
    D. None
    Answer: A

    85. One of the challenges of Big Data is:
    A. Data privacy and security
    B. Low storage
    C. Lack of information
    D. None
    Answer: A

    86. Big Data analytics is primarily used for:
    A. Understanding customer behavior and market trends
    B. Payroll processing
    C. Data deletion
    D. None
    Answer: A

    87. Cloud computing enables:
    A. On-demand network access to shared computing resources
    B. Offline data storage only
    C. Manual record keeping
    D. None
    Answer: A

    88. Internet of Things (IoT) refers to:
    A. Network of connected devices that communicate automatically
    B. Traditional telephones
    C. Only websites
    D. None
    Answer: A

    89. Blockchain technology ensures:
    A. Secure, transparent, and decentralized data transactions
    B. Manual accounting
    C. File encryption only
    D. None
    Answer: A

    90. In management, AI enhances decision-making through:
    A. Predictive models and pattern recognition
    B. Manual data entry
    C. Random guessing
    D. None
    Answer: A

    🔹 SECTION J – DATA WAREHOUSING, DATA MINING & KNOWLEDGE MANAGEMENT

    91. Data Warehouse is:
    A. Central repository integrating data from multiple sources
    B. Set of physical warehouses
    C. Archive files
    D. None
    Answer: A

    92. Data in a warehouse is:
    A. Subject-oriented, integrated, time-variant, and non-volatile
    B. Temporary
    C. Random
    D. None
    Answer: A

    93. Data Mining means:
    A. Extracting useful patterns and knowledge from large datasets
    B. Deleting old records
    C. Manual sorting
    D. None
    Answer: A

    94. “Market Basket Analysis” is an example of:
    A. Association Rule in Data Mining
    B. Regression
    C. Clustering
    D. None
    Answer: A

    95. OLAP stands for:
    A. Online Analytical Processing
    B. Offline Application Program
    C. Open Learning Access Program
    D. None
    Answer: A

    96. Knowledge Management (KM) is the process of:
    A. Capturing, storing, and sharing organizational knowledge
    B. Outsourcing IT
    C. Collecting only customer data
    D. None
    Answer: A

    97. Tacit knowledge is:
    A. Personal, experience-based, and hard to codify
    B. Documented and explicit
    C. Easily transferable
    D. None
    Answer: A

    98. Explicit knowledge refers to:
    A. Knowledge that can be easily documented and shared
    B. Personal intuition
    C. Informal communication
    D. None
    Answer: A

    99. The key objective of Knowledge Management is:
    A. Enhance innovation, efficiency, and organizational learning
    B. Restrict information
    C. Increase paperwork
    D. None
    Answer: A

    100. Managing technological change effectively requires:
    A. Forecasting, training, and employee involvement
    B. Ignoring new technology
    C. Rapid layoffs
    D. None
    Answer: A

  • UGC NET MBA Unit-9

    International Business, Global Institutions & Information Technology in Management

    1. INTERNATIONAL BUSINESS: OVERVIEW

    A. Meaning

    International Business (IB) refers to commercial transactions (trade, investment, logistics, finance, and services)across national borders, carried out to satisfy individuals and organizations globally.

    B. Nature and Scope

    1. Cross-border transactions involving multiple currencies.

    2. Different political, legal, cultural, and economic environments.

    3. Management of operations, subsidiaries, and supply chains worldwide.

    4. Integration of production and marketing on a global scale.

    C. Difference Between Domestic and International Business

    Aspect Domestic International
    Environment Single country Multinational
    Currency Single Multiple
    Market Homogeneous Diverse
    Risks Limited

    High (exchange, political)
    Decision-making Simple Complex

    D. Globalization

    Globalization is the process of increasing interdependence and integration of world economies through trade, investment, and technology.

    Drivers:

    • Liberalization of trade policies

    • Technological progress

    • Transportation and communication advancements

    • Deregulation and foreign investment inflows

    Implications for Management:

    • Cross-cultural leadership

    • Global supply chain management

    • International human resource policies

    • Managing exchange rate risk

    2. THEORIES OF INTERNATIONAL TRADE

    A. Classical Theories

    1. Mercantilism (16th–18th Century)

      • Wealth = Gold & Silver reserves.

      • Advocated export surplus and import restriction.

      • Criticism: Ignores mutual benefits of trade.

    1. Absolute Advantage (Adam Smith, 1776)

      • A country should specialize where it is more efficient.

      • Example: India → textiles; USA → machinery.

    1. Comparative Advantage (David Ricardo, 1817)

      • Trade benefits both nations even if one is more efficient in all goods.

      • Specialization based on relative efficiency (opportunity cost).

    Comparative Advantage=Lower Opportunity Cost of Production

    B. Modern Theories

    1. Heckscher–Ohlin (Factor Proportion) Theory

      • Trade is based on factor endowments (land, labor, capital).

      • A country exports goods that use its abundant factors intensively.

      • Criticism: Ignores technology and economies of scale.

    1. Leontief Paradox

      • Empirical test of H–O theory found the U.S. exported labor-intensive goods despite being capital-rich.

    1. Product Life Cycle Theory (Vernon)

      • Trade pattern evolves through product innovation and diffusion.

      • Stages:

        1. New Product (developed in advanced countries)

        2. Maturing Product (demand grows, export rises)

        3. Standardized Product (production shifts to developing countries).

    1. Porter’s Diamond Model (National Competitive Advantage)
      Four determinants of competitiveness:

      • Factor conditions (resources)

      • Demand conditions

      • Related and supporting industries

      • Firm strategy, structure, rivalry

    3. BALANCE OF PAYMENTS (BoP)

    Definition:
    A systematic record of all economic transactions between residents of a country and the rest of the world during a specific period.

    Structure of BoP

    Account Items
    Current Account Goods, services, income, transfers
    Capital Account

    Investments, loans, banking capital
    Official Reserves Account Foreign exchange and gold reserves

    BoP Surplus: Inflows > Outflows → appreciation of currency.
    BoP Deficit: Outflows > Inflows → depreciation or borrowing.

    Causes of Deficit:

    • High imports, low exports

    • Capital flight

    • Rising external debt

    Correction Measures:

    • Export promotion, import control

    • Currency depreciation

    • Attracting FDI

    4. FOREIGN DIRECT INVESTMENT (FDI)

    A. Definition

    FDI is long-term investment by a foreign entity in the management and control of a business enterprise in another country.

    B. Forms of FDI

    1. Greenfield Investment: Establishing new facilities abroad.

    2. Mergers & Acquisitions: Acquiring existing foreign firms.

    3. Joint Ventures: Shared ownership with local partners.

    C. Benefits of FDI

    • Brings capital and technology.

    • Enhances employment and productivity.

    • Improves export competitiveness.

    • Strengthens infrastructure and managerial skills.

    D. Costs / Risks

    • Profit repatriation

    • Market dominance by MNCs

    • Cultural and environmental concerns

    • Policy dependency

    E. Determinants of FDI

    • Market size and potential

    • Political stability

    • Infrastructure quality

    • Exchange rate stability

    • Incentives and tax policies

    5. MULTILATERAL REGULATION OF TRADE AND INVESTMENT: WTO

    A. Evolution

    • GATT (1947–1994): General Agreement on Tariffs and Trade – promoted trade liberalization.

    • WTO (1995–present): Replaced GATT; covers goods, services, and intellectual property (TRIPS).

    B. Objectives of WTO

    1. Promote free and fair international trade.

    2. Settle trade disputes.

    3. Reduce tariff and non-tariff barriers.

    4. Provide transparency and predictability in trade policies.

    C. Key Agreements

    • GATS: General Agreement on Trade in Services.

    • TRIPS: Trade-Related Aspects of Intellectual Property Rights.

    • TRIMS: Trade-Related Investment Measures.

    • AoA: Agreement on Agriculture.

    D. WTO and Developing Countries

    • Benefits: Market access, dispute resolution, FDI inflows.

    • Challenges: Loss of policy space, competition pressure, IP restrictions.

    6. INTERNATIONAL TRADE PROCEDURES & DOCUMENTATION

    A. Key Export Procedure

    1. Receipt of inquiry and quotation.

    2. Export order and letter of credit (L/C).

    3. Production/procurement.

    4. Quality inspection and customs clearance.

    5. Shipment and documentation.

    6. Payment realization.

    B. Important Documents

    Document Purpose
    Invoice Details of goods and prices
    Packing List Package contents
    Bill of Lading

    Transport document & title of goods
    Certificate of Origin Country of manufacture
    Insurance Certificate

    Covers transit risk
    Letter of Credit Bank guarantee of payment

    C. EXIM Policy (India)

    EXIM Policy = Export-Import Policy, announced every 5 years by DGFT under the Foreign Trade (Development & Regulation) Act, 1992.

    Objectives:

    • Promote exports and reduce trade deficit

    • Enhance competitiveness

    • Simplify procedures

    Key Schemes:

    • Advance Authorization Scheme

    • EPCG (Export Promotion Capital Goods)

    • SEZ (Special Economic Zones)

    • Duty Drawback Scheme

    7. INTERNATIONAL FINANCIAL INSTITUTIONS (IFIs)

    A. International Monetary Fund (IMF)

    Founded: 1945 at Bretton Woods Conference.
    Headquarters: Washington D.C.
    Members: 190+

    Objectives:

    • Promote exchange rate stability

    • Facilitate balanced growth of trade

    • Provide short-term financial assistance

    • Reduce global imbalances

    Key Instruments:

    • SDR (Special Drawing Rights)

    • Quota-based lending (conditional assistance)

    • Surveillance and technical advice

    B. World Bank Group (IBRD + IDA)

    IBRD: Provides long-term loans for development.
    IDA: Provides concessional loans and grants for poorest countries.

    Functions:

    • Financing infrastructure, education, and health projects

    • Promoting poverty reduction

    • Supporting policy reforms

    C. Other Institutions

    • IFC: Private sector investment.

    • MIGA: Investment guarantees.

    • ADB: Regional development financing (Asia-Pacific).

    8. INFORMATION TECHNOLOGY IN MANAGEMENT

    A. Use of Computers in Management

    Computers facilitate:

    • Decision support and analytics

    • Process automation

    • Enterprise communication

    • Financial management (ERP, MIS)

    B. Management Information System (MIS)

    Definition:
    A structured system that collects, processes, and presents data for managerial decision-making.

    Components:

    1. Input (data capture)

    2. Processing (computations, comparisons)

    3. Output (reports, dashboards)

    4. Feedback

    Benefits:

    • Timely and accurate information

    • Better planning and control

    • Enhanced productivity

    C. Decision Support System (DSS)

    Definition:
    A computer-based system that supports semi-structured and non-programmed decisions.

    Features:

    • Interactive, model-driven

    • Uses “what-if” analysis and simulations

    • Integrates data with expert judgment

    Examples: Financial planning, resource allocation, pricing simulations.

    9. ARTIFICIAL INTELLIGENCE (AI) AND BIG DATA

    A. Artificial Intelligence (AI)

    AI is the simulation of human intelligence in machines designed to think, learn, and act like humans.

    Applications in Management:

    • Marketing: Predictive analytics, customer segmentation.

    • HR: AI-based recruitment and appraisal.

    • Operations: Predictive maintenance, robotic process automation.

    • Finance: Fraud detection, algorithmic trading.

    B. Big Data

    Refers to large, complex, high-velocity data that cannot be processed using traditional tools.

    Characteristics (5 Vs):

    1. Volume

    2. Velocity

    3. Variety

    4. Veracity

    5. Value

    Applications:

    • Consumer behaviour analysis

    • Real-time decision-making

    • Market trend prediction

    10. DATA WAREHOUSING, DATA MINING & KNOWLEDGE MANAGEMENT

    A. Data Warehousing

    A central repository integrating data from multiple sources for analysis and reporting.
    Features: Subject-oriented, integrated, time-variant, non-volatile.
    Tools: OLAP (Online Analytical Processing), ETL processes.

    B. Data Mining

    Process of discovering patterns, correlations, and insights from large data sets using statistical and AI techniques.

    Techniques:

    • Classification (e.g., customer segmentation)

    • Clustering (grouping similar entities)

    • Association (market basket analysis)

    • Prediction (forecasting trends)

    C. Knowledge Management (KM)

    Systematic process of creating, storing, sharing, and utilizing organizational knowledge.

    KM Tools:

    • Intranets

    • Expert systems

    • Document management systems

    Benefits:

    • Improved innovation

    • Reduced redundancy

    • Faster decision-making

    11. MANAGING TECHNOLOGICAL CHANGE

    A. Concept

    Technological change refers to the process of invention, innovation, adoption, and diffusion of technology.

    B. Phases of Technological Change

    1. Invention: Creation of new ideas or prototypes.

    2. Innovation: Commercial application of invention.

    3. Diffusion: Spread and adoption of new technology.

    C. Technology Management Process

    1. Scanning and forecasting trends.

    2. Technology selection and acquisition.

    3. Implementation and training.

    4. Monitoring and continuous improvement.

    D. Challenges in Managing Technology

    • Rapid obsolescence

    • High investment cost

    • Employee resistance

    • Ethical and privacy concerns

    E. Managerial Strategies

    • Encourage R&D and learning culture

    • Develop flexible IT infrastructure

    • Collaborate with technology partners

    • Emphasize change management and reskilling