Section I
Q. 1) Explain the following concepts – 15 marks
a) Blanket permits
b) International Marketing
c) Trading blocs
d) Franchising
e) Counter Trade
Q. 2) Case Study
Mahindra and Mahindra is a major player in the tractor and certain segments of the automobile market in India. After an impressive growth for a few years the tractor market in India has been stagnating during 1998-99, 2000-01. Mahindra and Mahindra has been selling its tractors and utility vehicles in foreign markets including USA. Some of the components for its products have been sourced from abroad. M and M has a 100% market share in the US market in the 28-30 horse power (HP) range.
As a part of the strategy aimed at building a global supply chain, Mahindra USA has signed a memorandum of understanding (MOU) with Korean motor tractor major Tong Yang, a part of the $ 2 bn. Tong Yang mooslam group, according to which Mahindra will source high horse power (mostly 25-40 hp range) and sell them around the world under the M and M brand name. To start with, the premium range of tractors will be sold in the US. M and M’s current tractor range is more utility oriented and lacks the aesthetic appeal that Tong Yang’s tractor have, a must for a strong presence in the US market.
Questions:
1) What are the advantages and disadvantages of global sourcing? – 5 marks
2) How will the foreign market expansion help M and M? – 5 marks
3) How does the strategic alliance with Tong Yang benefit M and M? -5 marks
Section II
Q. 3) What are trade barriers and explain in detail various forms of trade barriers? – 10 marks
Q.4) Explain the functions and achievements of WTO in today’s scenario. – Â 10 marks
Q.5) Enumerate essentials of good packaging. – 10 marks
Q. 6) What is meant by overseas distribution channels? State the distribution channels available for exporting. – 10 marks.
Q. 7) Short notes: – 10 marks
a) INCOTERM
b) VAT
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