Download GTU (Gujarat Technological University) MBA 2019 Winter 5th Sem 3559904 International Business Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) SEMESTER (5) ? EXAMINATION ? 2019
Subject Code: 3559904 Date: 03/12/ 2019
Subject Name: International Business
Time: 10:30am to 1:30 pm Total Marks: 70
Instructions:
? Attempt all questions.
? Make suitable assumptions wherever necessary.
? Figures to the right indicate full marks.
Q. No. Answer the following terms briefly Marks
Q.1 a) FEMA
b) FTDRA
c) International Business
d) Deemed Exports
e) IEC Number
f) Direct and indirect quotes
g) Advantages of indirect exports
14
Q.2 (a) Explain an international marketer?s orientations towards international
business.
07
(b) Explain the different types of economic systems. 07
OR
(b) Explain different political risks associated with international business. 07
Q.3 (a) Explain the different terms of payment, and explain documentary bills in
detail.
07
(b) Elaborate on the Indian Government?s Institutional Infrastructure for
Foreign Trade.
07
OR
Q.3 (a) Explain Documentary Letter of Credit. What is the process of issuing an
L/C? Which are the major different types of L/Cs?
07
(b) Which are the various modes of entry available to a manufacturer of
footwear from Gujarat, for entering into foreign markets? Explore all
modes of entry available.
07
Q.4 Huawei?s entry to India
The story
Huawei of China is the world?s second- largest supplier of
telecommunications equipment. The company has been expanding into
international markets since 1997 but its brand has until recently remained
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1
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) SEMESTER (5) ? EXAMINATION ? 2019
Subject Code: 3559904 Date: 03/12/ 2019
Subject Name: International Business
Time: 10:30am to 1:30 pm Total Marks: 70
Instructions:
? Attempt all questions.
? Make suitable assumptions wherever necessary.
? Figures to the right indicate full marks.
Q. No. Answer the following terms briefly Marks
Q.1 a) FEMA
b) FTDRA
c) International Business
d) Deemed Exports
e) IEC Number
f) Direct and indirect quotes
g) Advantages of indirect exports
14
Q.2 (a) Explain an international marketer?s orientations towards international
business.
07
(b) Explain the different types of economic systems. 07
OR
(b) Explain different political risks associated with international business. 07
Q.3 (a) Explain the different terms of payment, and explain documentary bills in
detail.
07
(b) Elaborate on the Indian Government?s Institutional Infrastructure for
Foreign Trade.
07
OR
Q.3 (a) Explain Documentary Letter of Credit. What is the process of issuing an
L/C? Which are the major different types of L/Cs?
07
(b) Which are the various modes of entry available to a manufacturer of
footwear from Gujarat, for entering into foreign markets? Explore all
modes of entry available.
07
Q.4 Huawei?s entry to India
The story
Huawei of China is the world?s second- largest supplier of
telecommunications equipment. The company has been expanding into
international markets since 1997 but its brand has until recently remained
2
little known outside its native country. One reason is that Huawei is a
business-to-business supplier rather than consumer-focused. As part of its
globalization strategy, Huawei decided to begin operations in India in 2000.
The challenge
In India, Huawei faced various difficulties. First, the company needed to
build a strong and distinctive brand for non-Chinese markets. In India in
particular, the telecoms equipment market was crowded. So Huawei needed
to establish a reputation as a reliable partner and create a distinctive
identity. Its Chinese roots worked against it on several levels. An enmity
still exists between India and China, with an unresolved border dispute in
the north and a history of armed conflict as recently as the 1970s. Also,
many Indians perceive Chinese companies to be closed rather than
transparent. Thus, Indian businesses often find it difficult to establish
relations of trust with Chinese partners. Chinese companies also have a
reputation ? not always deserved ? in India for producing low-quality
goods. Similarly, Huawei was seen primarily as a low-price manufacturer,
which meant its products were regarded as of low quality. The fact that the
company spends 10 per cent of its profits a year, about $3bn, on research
and development, was not widely known.
The response
Huawei realized that in order to compete in India it would have to invest
heavily and get to know the market and its particular features. With this in
mind, it established R&D and service centers in India, and 90 per cent of
the jobs created went to Indians. This helped to persuade skeptics that
Huawei was interested in value creation in India, not just value extraction.
Today, India is Huawei?s second-largest research base outside China. At
the company?s two production plants in Chennai, Huawei staff work with
local companies to help bring the latter?s production quality up to
international standards. The long-term plan is to source as many
components locally as possible. Not only are such components cheaper,
they also help local companies achieve higher- quality standards, making
them more competitive, spreading skills and boosting the economy. Huawei
has also begun promoting consumer products such as smart phones.
Recently the company established a link with a leading Indian English-
language news channel to sponsor a contest that projected Huawei smart
phones as aspiration products, contrary to the prevailing low-quality
perception of Chinese brands. To build an employer brand, Huawei has
developed a strong culture of rewarding R&D talent and promoting Indian
employees to managerial positions. The hope is that this will be an added
boost to the company?s reputation in the country, which has a strong young
talent base in engineering. Strengths in research and innovation in India
could help Huawei to enhance its reputation worldwide.
(a) Identify the major factors impacting Huawei?s entry into India. 07
(b) How is Huawei managing its international HR function? 07
OR
Q.4 (a) Which are the challenges foreign players faces in entering India? 07
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1
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA (PART TIME) SEMESTER (5) ? EXAMINATION ? 2019
Subject Code: 3559904 Date: 03/12/ 2019
Subject Name: International Business
Time: 10:30am to 1:30 pm Total Marks: 70
Instructions:
? Attempt all questions.
? Make suitable assumptions wherever necessary.
? Figures to the right indicate full marks.
Q. No. Answer the following terms briefly Marks
Q.1 a) FEMA
b) FTDRA
c) International Business
d) Deemed Exports
e) IEC Number
f) Direct and indirect quotes
g) Advantages of indirect exports
14
Q.2 (a) Explain an international marketer?s orientations towards international
business.
07
(b) Explain the different types of economic systems. 07
OR
(b) Explain different political risks associated with international business. 07
Q.3 (a) Explain the different terms of payment, and explain documentary bills in
detail.
07
(b) Elaborate on the Indian Government?s Institutional Infrastructure for
Foreign Trade.
07
OR
Q.3 (a) Explain Documentary Letter of Credit. What is the process of issuing an
L/C? Which are the major different types of L/Cs?
07
(b) Which are the various modes of entry available to a manufacturer of
footwear from Gujarat, for entering into foreign markets? Explore all
modes of entry available.
07
Q.4 Huawei?s entry to India
The story
Huawei of China is the world?s second- largest supplier of
telecommunications equipment. The company has been expanding into
international markets since 1997 but its brand has until recently remained
2
little known outside its native country. One reason is that Huawei is a
business-to-business supplier rather than consumer-focused. As part of its
globalization strategy, Huawei decided to begin operations in India in 2000.
The challenge
In India, Huawei faced various difficulties. First, the company needed to
build a strong and distinctive brand for non-Chinese markets. In India in
particular, the telecoms equipment market was crowded. So Huawei needed
to establish a reputation as a reliable partner and create a distinctive
identity. Its Chinese roots worked against it on several levels. An enmity
still exists between India and China, with an unresolved border dispute in
the north and a history of armed conflict as recently as the 1970s. Also,
many Indians perceive Chinese companies to be closed rather than
transparent. Thus, Indian businesses often find it difficult to establish
relations of trust with Chinese partners. Chinese companies also have a
reputation ? not always deserved ? in India for producing low-quality
goods. Similarly, Huawei was seen primarily as a low-price manufacturer,
which meant its products were regarded as of low quality. The fact that the
company spends 10 per cent of its profits a year, about $3bn, on research
and development, was not widely known.
The response
Huawei realized that in order to compete in India it would have to invest
heavily and get to know the market and its particular features. With this in
mind, it established R&D and service centers in India, and 90 per cent of
the jobs created went to Indians. This helped to persuade skeptics that
Huawei was interested in value creation in India, not just value extraction.
Today, India is Huawei?s second-largest research base outside China. At
the company?s two production plants in Chennai, Huawei staff work with
local companies to help bring the latter?s production quality up to
international standards. The long-term plan is to source as many
components locally as possible. Not only are such components cheaper,
they also help local companies achieve higher- quality standards, making
them more competitive, spreading skills and boosting the economy. Huawei
has also begun promoting consumer products such as smart phones.
Recently the company established a link with a leading Indian English-
language news channel to sponsor a contest that projected Huawei smart
phones as aspiration products, contrary to the prevailing low-quality
perception of Chinese brands. To build an employer brand, Huawei has
developed a strong culture of rewarding R&D talent and promoting Indian
employees to managerial positions. The hope is that this will be an added
boost to the company?s reputation in the country, which has a strong young
talent base in engineering. Strengths in research and innovation in India
could help Huawei to enhance its reputation worldwide.
(a) Identify the major factors impacting Huawei?s entry into India. 07
(b) How is Huawei managing its international HR function? 07
OR
Q.4 (a) Which are the challenges foreign players faces in entering India? 07
3
(b) Which kind of long-term international strategic approach is Huawei lining
up for India?
07
Q.5 Mahindra & Mahindra (M & M) 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 1998-1999 to
2000-2001.
M & M 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 & M has a 100 per cent subsidiary in USA, Mahindra USA,
with a strong network of 100 dealers. Mahindra has a five per cent market
share in the US market in the 20-30-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 the Korean
tractor major Tong Yang, a part of the $ 2 billion Tong Yang Moolsam group,
according to which Mahindra will source high horse power (mostly 25-40 hp
range) and sell them around the world under the M & M brand name. To start
with, the premium range of tractors will be sold in the US.
M & M?s current tractor range is more utility-oriented and lacks the aesthetic
appeal that Tong Yang?s tractors have, a must for a strong presence in the US
market.
(a) What are the advantages and disadvantages of global sourcing? 07
(b) How does the strategic alliance with Tong Yang benefit M & M?
OR
Q.5 (a) How will the foreign market expansion help M & M? 07
(b)
What are the possible risks of the alliance? How can they be overcome/
minimized?
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This post was last modified on 19 February 2020