Third Year

Time : Three hours

Maximum : 75 marks

1. section A consists of EIGHT short answer questions. The candidate has to answer FOUR questions. The answer shall not exceed 1 page each.
2. Section B consists of FOUR questions. Each question consists of either or choices and the candidate has to answer either (a) or (b) from each question. The answer shall not exceed 5 pages each.
3. Section C consists of Case which is compulsory and carries 15 marks.

SECTION A — (4 x 3 = 12 marks)

Answer any FOUR in brief:

(a) Scope of international marketing.
(b) Institutional frame work for international marketing.
(c) International culture.
(d) Free Trade Zones (FTZ)
(e) F.O.B
(f) Transfer pricing.
(g) International product life cycle.
(h) Segmentation in international marketing.

SECTION B - (4 x 12 = 48 marks)

2. (a) How do you enter in international markets? What are the constraints?

Or

(b) What are the legal constraints for international marketing?

3. (a) Find out the international trade barriers for international market. How do you over come them?

Or

(b Explain various international pricing strategies? Which strategy is appropriate in USA market?

4. (a) Write the basis for segmenting international markets.

Or

(b) Evaluate the role of various stages of domestic product life cycle in exporting the product.

5. (a) Establish the role and significance of international marketing reference

Or

(b) What are various sources of finance for international marketing? Write their advantages and disadvantages.

SECTION C - (15 marks)

6. Case Study:

ARUNA TEXTILES COMPANY

Aruna textile company was a public limited registered in India. It had a total turnover of Rs. 650 rores of yarn and textile of which about Rs. 450 crores was textiles, Its main production line was in the coarse and lower medium cloth, and bulk of its production was sold in the domestic market at prices ranging between Rs. 5 to Rs. 7 per metre.

The company had an option to take export commitments to Canada for a quantity upto 40 to 50 million metres per annum (value Rs. 40 crores) at average realisation of Rs. 6 per metre. However, the cost of production in case of exports was higher by 10% compared to domestic production due to higher rejections during inspection etc.

The Canada contracts are made on an canual basis and prices are fixed for the entire year whereas domestic prices are subject to market forces.

At the time of the contracts are to be made i.e. November of a particular year, the realisations from the export to Canada were at par with domestic (taking into account incentives or marginally lower).

The Export Manager of the Company recommended to his Board that it is worthwhile to undertake the Canada export and gave argument in support. On the other hand, some members of the Company felt that it was not worthwhile exporting on the basis of facts given above, particularly as the earnings were in rupees. The company was exporting through merchant exporters and therefore no special advantages accrued.

What would be your reconineidation and if you recommend remaining in exports, could you logically list out the advantages, short-term/long-term? .

[201/DM-1/03]

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