KSOU is known to make a good effort in providing proper education to the students unable to join a regular program. But the quality of education provided by them will differ from any regular program. 

The student-teacher interaction is hampered along with the peer-to-peer relationship. Communicating directly with the teacher and students is much better than online lectures. This might be one of the reasons why distance education has very low credibility for job prospects. 

But for the students who are unable to join a regular course due to other priorities like a job or other responsibilities, attending online programs gives them an opportunity to learn about the subject.
Karnataka State Open University will provide study materials and their online lectures will be of great help.

Joining an MBA college does not usually depend on a student graduating with a regular course or correspondence course. But if you are not from a regular course, you tend to miss a lot of experiences which are only possible in a college atmosphere. 

During your interview for admission in an MBA course, you will be asked why you opted for this rather than a regular college. You might have to put some more focus on extracurriculars as they will also come in handy during your selection.

Your selection will only be considered if there are not many students from regular courses applying for MBA. It is a very rare situation, and you should not depend on it.

It is suggested that you go for correspondence BBA or any graduate course. Join the full-time program and get familiar with the classroom environment. Symbiosis or Manipal is recommended for BBA as they are more reputed colleges than state Universities.

Yes, a B.Tech degree from Karnataka State Open University (KSOU) is acceptable to foreign universities. As KSOU is recognized by UGC and the degree is valid for applying to foreign universities.

But, various countries have different rules and regulations, criteria, etc. for the recognition of universities. Most of the popular foreign universities have certain standards. Therefore, your statement of purpose, your academic record, your age, financial status, etc. will play an important role in the final admission.