International Business Apr 18


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Q1. A Mumbai based manufacturer of textile products is negotiating an export contract with a new prospective customer based in Mexico. He is concerned that international trade presents a spectrum of risk, involving differences in regulatory and legal environment, cultural differences, etc. More specifically, he is unsure of how he would receive the payment and the associated risks involved. As a specialist in the subject, you are required to guide him and help him resolve his dilemma regarding choice of payment instrument. (10 Marks)

Q2. A newly appointed General Manager of a domestically strong FMCG company feels that the next big growth thrust can only come from venturing into new international markets. Despite a strong domestic presence, the company is yet to foray into international markets. The CEO of the company, however, is not too convinced about the benefits of such a move, and is not too clear about the ways to enter an international market. Discuss and conclude whether entering international markets will be helpful? If yes, discuss the different ways for the company to enter international markets. (10 Marks)

Q3A) A globally renowned MNC, headquartered in the US and specializing in Children’s toys, has recently forayed into India. However, it has very soon realized that its marketing campaigns and product lines, which have been so successful in other parts of the world, are not working in India. Sales have stagnated and the company is finding it difficult to establish a significant presence in India. It has recently appointed you as General Manager to look into these issues and take the company forward. Could cultural intricacies in the Indian market be a reason behind this? (5 Marks)

Q3B) Suggest ways through which the company can turn around its fortunes in the Indian market. (5 Marks)