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AEREN FOUNDATION’S Maharashtra Govt. Reg. No.: F-11724
Name : Marks : 80
Course : Masters in Business Administration (MBA 4 Sem)
Subject : International Business
Answer the following question.
Q1. What are the functions of the distribution channels ? (10marks)
Answer : A distribution channel (also called a marketing channel) is the path or route decided by the company to deliver its good or service to the customers. The route can be as short as a direct interaction between the company and the customer or can include several interconnected intermediaries like wholesalers, distributors, retailers, etc.
Hence, a distribution channel can also be referred to as a set of interdependent intermediaries that help make a product
Q2. Explain Export Procedures and Documentation in India ? (10marks)
Answer : Export like the import system, is held to be one of the major components of the international trade. Moreover, after the LPG initiative the exporting and importing has heightened its pace of development. Exporting done by the country is bound to many formalities both legal and compulsory made by the exported nation.
Export Procedure
Q3. Which products are majority imports? (10marks)
Answer : 1. Oil
Import cost – 177.5 billion USD
Like most of other countries, India too gets its crude oil from the Middle-East, especially Saudi Arabia and Iraq. In the last decade, India’s oil import has risen from around 65 million tonnes to almost 180 million tonnes! India is one of the most oil import dependent countries in the world
2. Precious stones India is a unique country. Why? Because the No. 2 item in both the lists of top imports and exports of India is precious stones, gold in particular. Though the import rate has reduced by 9 per cent recently, India
Q4. Explain different types of dumping (10marks)
Answer : Dumping in the financial world occurs when a company or a country exports its products at a price lower than its domestic price. Exporters dump to compete with the producers and sellers in the importing country.
Types of Dumping
Below are the four types of dumping in international trade:
- Sporadic dumping
Q5. Distinguish between the direct distribution channel and indirect distribution channel (10marks)
Answer : Distribution is the process of getting your product into your target markets. You might handle the distribution process directly at the outset whether digitally or in person, but as your business grows, it may be more efficient to enlist a distributor to get your product to retailers who sell on your behalf.
Direct distribution
Whether it’s a small business or a multinational company, direct distribution allows products to be sold directly to customers. On a micro
Q6. Discuss the two modern theory of trade. (10marks)
The modern theory of international trade is an extension of the general equilibrium theory of value.
This theory has been put forward by Bertil Ohlin, a Swedish economist, and it has replaced the traditional comparative cost theory.
Just as individuals specialize in economic activity in which they have comparative advantages, similarly countries specialize in the production of certain commodities in which they have comparative advantage on the basis of factor endowments.
1. The Heckscher and Ohlin Model
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Case Studies
CASE STUDY (20Marks)
Sometimes, doing the right thing is more important than profits, a lesson that Malden Mills learned first hand. When t factory burned down in 1995 just two weeks before Christmas, production halted and employees assumed they’d be o of work until the factory was rebuilt. But CEO Aaron Feuerstein extended the employees 90 days at full pay, as well 180 days with benefits at a cost of $25 million to Malden Mills. After the factory was rebuilt and all of the displac workers were rehired, cooperation and productivity reached a new high, with 40% more business, 95% customer a employee retention, and a production increase from 130,000 to 200,000 yards per week. However, since then, Mald Mills has been to bankruptcy court three times, with much of the debt tied to the rebuild of the factory. Feuerstein mad employees happy, to be sure,
Answer the following question.
Q1. Explain whether the bold steps taken by CEO will pay off in the end.
Answer : Yes, the favour he did to his employees irrespective of his profit and lost, will pay off later. But one should always be conscious while making such decisions.
Often in business, employees are left out of the profit calculations, and only included in the expense records.
Aaron saw his employees as profit.
Q2. Give an overview of the case..
Answer : In late 1995, a fire at Malden Mills put 3,000 union jobs at risk. The timing couldn’t have been worse. The 90-year-old manufacturer in Lawrence, Mass., has seen its revenues triple and employment double since emerging from bankruptcy in 1982. It’s popular Polartec and Polarfleece fabrics were one reason. A loyal and productive workforce was the other.
In a time when offshore
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