MK0018-International Marketing

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Master of Business Administration - MBA Semester 4
MK0018-International Marketing
(Book ID: B1699)
Assignment (60 Marks)
Note: Answer all questions must be written within 300 to 400 words each. Each Question carries 10
marks 6 X 10=60.
Q1. Differentiate between GATT and WTO.
Answer. General Agreement on Tariff and Trade (GATT):
The GATT, was established on a provisional basis after the Second World War in the wake of other new
multilateral institutions dedicated to international economic cooperation — notably the “Britton Woods”
institutions now known as the World Bank and the International Monetary Fund.
The original 23 GATT countries were among over 50 which agreed a draft Charter for an International
Trade Organization (ITO) — a new specialized agency of the United Nations. The Charter was intended to
provide not only world trade disciplines but also contained rules relating to employment, commodity
agreements, restrictive business practices, international investment and services.
Q2. Write short notes on the following:
A. International franchising
B. International contract manufacturing
Answer. a. International franchising: Franchising is the practice of the right to use a firm's business model
and brand for a prescribed period of time. The word "franchise" is of Anglo-French derivation—from franc,
meaning free—and is used both as a noun and as a (transitive) verb. For the franchisor, the franchise is an
alternative to building "chain stores" to distribute goods that avoids the investments and liability of a
chain. The franchisor's success depends on the success of the franchisees. The franchisee is said to have a
greater incentive than a direct employee because he or she has a direct stake in the business.
Q3. What are the stages in which international markets are screened and analyzed?
Answer. The five steps are Country Identification, Preliminary Screening, In-Depth Screening, Final
Selection and Direct Experience. Let’s take a look at each step in turn.
In-Depth Screening
The countries that make it to stage three would all be considered feasible for market entry. So it is vital
that detailed information on the target market is obtained so that marketing decision-making can be
accurate. No one can deal with not only micro-economic factors but also local conditions such as
marketing research in relation to the marketing mix i.e. what prices can be charged in the nation? – How
Q4. What is counter-trade? Describe the various types of counter-trade.
Answer. Countertrade means exchanging goods or services which are paid for, in whole or part, with other
goods or services, rather than with money. A monetary valuation can however be used in counter trade for
accounting purposes. In dealings between sovereign states, the term bilateral trade is used.
Countertrade also occurs when countries lack sufficient hard currency, or when other types of market
trade are impossible.
In 2000, India and Iraq agreed on an "oil for wheat and rice" barter deal, subject to United Nations
approval under Article 50 of the UN Persian Gulf War sanctions, that would facilitate 300,000 barrels of oil
delivered daily to India at a price of $6.85 a barrel while Iraq oil sales into Asia were valued at about $22 a
barrel. In 2001, India agreed to swap 1.5 million tonnes of Iraqi crude under the oil-for-food program.
The Security Council noted: " although locally produced food items have become increasingly available
throughout the country, most Iraqis do not have the necessary purchasing power to buy them.
Q5. Discuss the role of sales promotion and personal selling in international marketing.
Answer. Sales promotions
Sales promotions have the specific purpose of driving short-term sales of products or services. Because
they are highly effective in triggering short-term sales, they play a vital role in most marketing managers'
arsenal of tools to drive demand. As companies expand into international markets, marketers usual rely on
the same tools that serve them well in the domestic market. However, some sales promotions may not
work in foreign markets because of host country differences.
a. Host Markets Rule
Sales promotion tools effective in the United States may create unwanted surprises when used in other
countries, because of cultural, regulatory and legal differences. For example, couponing in Malaysia will
likely backfire, because Malaysians find coupons embarrassing. You'll likely meet cultural resistance by
Q6. Write short notes on the following:
a. Bill of Exchange
b. Packing list
c. Air way bill
d. Certificate of origin
e. Consular invoice
Answer. a. Bill of Exchange:
A written, unconditional order by one party (the drawer) to another (the drawee) to pay a certain sum,
either immediately (a sight bill) or on a fixed date (a term bill), for payment of goods and/or services
received. The drawee accepts the bill by signing it, thus converting it into a post-dated check and a binding
contract.
A bill of exchange is also called a draft but, while all drafts are negotiable instruments, only "to order" bills
of exchange can be negotiated. According to the 1930 Convention Providing A Uniform Law For Bills of
Summer-2016
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