MS – 64
International Marketing
MS 64 Solved Free Assignment 2022
MS 64 Free Solved Assignment Jan & July 2022
Q 1 What are the reasons that promote international business concerns to invest in foreign lands? Discuss.
Ans :- The three main concerns facing any international business entity are political stability, the government’s orientation and nationalism While political stability is necessary for a business entity,
it is particularly important for an international business firm because they reflect the success or failure of any business concern, for political stability is often associated with stability of economic policies.
Changes in regime, violence and cultural divisions based on language or other factors can lead to a very uncertain environment in which to conduct business.
The other concerns facing international business are orientation of the government and nationalism.MS 64 Solved Free Assignment 2022
The orientation of the government can very often reveal whether International business can survive in that country or not.
A country’s ideological leaning may be capitalism, socialism, a mixture or other form.
In the last years remarkable changes have been taking place in the ideologies of many countries.
The most dramatic example has been the collapse of the communist USSR and Eastern Europe and its replacement with market led policies and ideologies.
Another dramatic change has been seen in the opening up of Chinese economy along with India.
Similarly, many African countries are abandoning their centrist leanings in favour of market led economies, for example, Zimbabwe and Tanzania.
Nationalism also influences this variable because the business entity has to exist and operate within that country.
Nationalist lineage can be lead to expropriation of foreign held assets. These concerns through their impact give rise to political risks.
Foreign direct investment, or FDI for short, has become a cornerstone for both governments and corporations.
By acquiring a controlling interest in foreign assets, corporations can quickly acquire new products and technologies, as well as sell their existing products to new markets.
And by encouraging foreign direct investment, governments can create jobs and improve economic growth.MS 64 Solved Free Assignment 2022
For international investors, foreign direct investment plays an extremely important role.
The growth of emerging markets has been due in large part to incoming foreign direct investment.
At the same time, companies investing abroad can realize higher growth rates and diversify their income, which creates opportunities for investors.
Some key benefits of foreign direct investment include:
Economic Growth: Countries receiving foreign direct investment often experience higher economic growth by opening it up to new markets, as seen in many emerging economies.
Job Creation and Employment: Most foreign direct investment is designed to create new businesses in the host country, which usually translates to job creation and higher wages.
Technology Transfer: Foreign direct investment often introduces world-class technologies and technical expertise to developing countries.
However, there are also a few drawbacks:
Strategic Industries: Many countries protect certain strategic industries, like defense, from investment to maintain control from foreign entities.
Long-term Capital Movement: Some critics argue that once a foreign investment becomes profitable, capital really begins to flow out of the host country and to the investor’s country.MS 64 Solved Free Assignment 2022
Disruption of Local Industry: There is some concern that foreign direct investment may disrupt local industry and economies by attracting the best workers and creating income disparity.
These levels can be found on websites like the United Nations Conference on Trade and Development (UNCTAD).
Foreign Direct Investment and International Investing
Foreign direct investment also plays an important role on a microeconomic level.
Domestic companies that expand into foreign markets can realize significant growth.
Moreover, exposure to more than one country also enhances diversification.
On the flip side, foreign companies operating in emerging markets can be targets for foreign direct investments themselves, creating opportunities for investors.
Q 2 Enumerate the elements that make up culture. Why is an understanding of different cultures important to an international marketing manager?.
Ans :- Culture was defined earlier as the symbols, language, beliefs, values, and artifacts that are part of any society.MS 64 Free Solved Assignment
As this definition suggests, there are two basic components of culture: ideas and symbols on the one hand and artifacts (material objects) on the other.
The first type, called non material culture, includes the values, beliefs, symbols, and language that define a society.
The second type, called material culture, includes all the society’s physical objects, such as its tools and technology, clothing, eating utensils, and means of transportation. These elements of culture are discussed next.
Every culture is filled with symbols, or things that stand for something else and that often evoke various reactions and emotions.
Some symbols are actually types of nonverbal communication, while other symbols are in fact material objects. Shared symbols make social interaction possible.
Language :
Perhaps our most important set of symbols is language. In English, the word chair means something we sit on. In Spanish, the word silla means the same thing.
As long as we agree how to interpret these words, a shared language and thus society are possible.MS 64 Solved Free Assignment 2022
By the same token, differences in languages can make it quite difficult to communicate.
For example, imagine you are in a foreign country where you do not know the language and the country’s citizens do not know yours.
Worse yet, you forgot to bring your dictionary that translates their language into yours, and vice versa, and your iPhone battery has died. You become lost.
How will you get help? What will you do? Is there any way to communicate your plight?
As this scenario suggests, language is crucial to communication and thus to any society’s culture.
Children learn language from their culture just as they learn about shaking hands, about gestures, and about the significance of the flag and other symbols.
Humans have a capacity for language that no other animal species possesses.
Our capacity for language in turn helps make our complex culture possible.
Norms MS 64 Solved Free Assignment 2022
Cultures differ widely in their norms, or standards and expectations for behaving.
We already saw that the nature of drunken behavior depends on society’s expectations of how people should behave when drunk.
Norms of drunken behavior influence how we behave when we drink too much.
Norms are often divided into two types, formal norms and informal norms.
Formal norms, also called mores (MOOR-ayz) and laws, refer to the standards of behavior considered the most important in any society.
Examples in the United States include traffic laws, Criminal codes, and, in a college context, student behavior codes addressing such things as cheating and hate speech.
Informal norms, also called folkways and customs,refer to standards of behavior that are considered less important but still influence how we behave.
Table manners are a common example of informal norms, as are such everyday behaviors as how we interact with a cashier and how we ride in an elevator.
Rituals : MS 64 Solved Free Assignment 2022
Different cultures also have different rituals, or established procedures and ceremonies that often mark transitions in the life course.
As such, rituals both reflect and transmit a culture’s norms and other elements from one generation to the next.
Graduation ceremonies in colleges and universities are familiar examples of time-honored rituals.
In many societies, rituals help signify one’s gender identity.
For example, girls around the world undergo various types of initiation ceremonies to mark their transition to adulthood.
Among the Bemba of Zambia, girls undergo a month-long initiation ceremony called the chisungu, in which girls learn songs, dances, and secret terms that only women know (Maybury-Lewis, 1998).
In some cultures, special ceremonies also mark a girl’s first menstrual period.
Such ceremonies are largely absent in the United States, where a girl’s first period is a private matter.
But in other cultures the first period is a cause for celebration involving gifts, music, and food.
Changing Norms and Beliefs :MS 64 Solved Free Assignment 2022
Our examples show that different cultures have different norms, even if they share other types of practices and beliefs.
It is also true that norms change over time within a given culture.
Two obvious examples here are hairstyles and clothing styles.
When the Beatles first became popular in the early 1960s, their hair barely covered their ears, but parents of teenagers back then were aghast at how they looked.
If anything, clothing styles change even more often than hairstyles. Hemlines go up, hemlines go down.
Lapels become wider, lapels become narrower. This color is in, that color is out.
Q3. Briefly explain the EPCG scheme as envisaged in the current Export Import Policy.
Ans :- Export Promotion Capital Goods (EPCG) scheme allows import of capital goods including spares for pre production, production and post production at zero duty subject to an export obligation of 6 times of duty saved on capital goods imported under EPCG scheme, to be fulfilled in 6 years reckoned from Authorization issuedate.
EPCG scheme covers manufacturer exporters with or without supporting manufacturer(s)/vendor(s), merchant exporters tied to supporting manufacturer(s) and service providers.
The Scheme also covers a service provider who is designated / certified as a common Service Provider (CSP).
EPCG authorization holder can export either directly or through third party (s). Export proceeds are to be realized in freely convertible currency except for deemed exports.
Import of capital goods imported under the EPCG scheme shall be subject to Actual User condition till export obligation is completed.
Export Obligation under EPCG scheme is required to be fulfilled by export of goods manufactured/services rendered by the applicant. There are two types of export oligation that are mandatory.MS 64 Solved Free Assignment 2022
First, Annual Average in which export obligation is over and above, the average level of experts achieved by the authorization holder in the preceding three licensing years for the same and similar products within the overall export obligation period including extended period, if any.
Such average would be the arithmetic mean of export performance in the last three years for the same and similar products.
Secondly, Specific Average which is 6 times the duty saved amount in which the Authorization holder shall also fulfill a minimum of 50% export obligation in each block of years – the first block being of 4 years and the second block is of 2 years.
Royalty payments received in freely convertible currency and foreign exchange received for R&D services shall also be counted for discharge under EPCG.
EPCG Authorization holder may also source capital goods from a domestic manufacturer. Such domestic manufacturer shall be eligible for deemed export benefit under FTP.
EPCG Authorization holders can opt for Technological Upgradation of existing capital good imported under EPCG Authorization.
Import of second hand capital goods is not permitted under the EPCG scheme.
To incentivize fast track companies to accelerate exports,
there is a provision for early redemption and in cases where Authorization holder has fulfilled 75% or more of specific export obligation and 100% of Average Export Obligation till date, if any, in half or less than half the original export obligation period specified , remaining export obligation shall be condoned.
Authorization holder is required to submit to RA concerned by 30th April of every year, report on fulfillment of export obligation.MS 64 Free Solved Assignment
The scheme allows one or more requests for grant of extension in export obligation period, on payment of composition fee equal to 2% of proportionate duty saved amount on unfulfilled export obligation or an enhancement in export obligation imposed to the extent of 10% of total export obligation imposed under authorization, as the case may be, at the choice of exporter, for each year of extension sought.
Such first extension in EO period can be for a maximum period of 2 years.
Extension in EO period beyond two years’ period may be considered, for a further extension upto 2 years with a condition that 50% of duty payable in proportion to the unfulfilled export obligation is paid by authorization holder to Custom authorities before an endorsement of extension is made on EPCG authorization by RA concerned.
In such cases, no composition fee is to be paid or additional EO is to be imposed.
In case the firm is still not able to complete the export obligation, duty already deposited will be deducted from total duty plus interest to be paid for EO default.
In case, EPCG authorization holder fails to fulfil prescribed export obligation, he shall pay duties of Customs plus interest as prescribed by Customs authority.
This facility can also be availed by EPCG authorization holder to exit at his option.
Q 4. What are the relative advantages of standardization/adaptation of an international advertising programme.
Ans :- Standardization means an undifferentiated use of the same Marketing Mix (4-7Ps) in all countries.
In this case, the firm simply replicates, without any changes, the same strategy in the different markets in which it operates.
In general, firms that adopt the standardization strategy are those that are exporting for the first time, or those that focus on cost savings through economies of scale and for whom an adaptation process could result very costly.
You can find below some factors that avoid standardization :
Globalization of the market (consumers/customers): companies that offer a product whose market is “global” can offer the same product in multiple countries, catering to a wide range of consumers.MS 64 Solved Free Assignment 2022
Economies of scale: mass production allows the firm to lower unit production costs by increasing volumes through economies of scale.
Transferable competitive advantages: offering a standard product can provide several competitive advantages.
The cost reduction provided by economies of scale allows the firm to introduce competitive pricing.
In addition, a standard product ensures quick response times to the market, provides a global standardized image and better control over marketing strategies.
Adaptation means that each country/market has its Marketing Mix.
The adaptation strategy is geared towards meeting the needs of the market, planning all business activities with the aim of efficiently meeting the specific needs and respecting the values of local consumers.
We can take as an example beer companies. When entering a new market we can see that one country can prefer non-alcoholic beer.
The company then has to adapt to the situation and for instance decide to nroduce more heer which results nreferable for the chosen country/market.
As in the case of the standardization, the adaptation strategy is better suited in the presence of the following factors: MS 64 Solved Free Assignment 2022
• Differences between customers/consumers
• Differences in local competitive conditions
• Differences in local legal conditions
There is no right or wrong decision. However, one of the most important elements to emphasize is that the decision to standardize or not is really about all the levers of the Marketing Mix (Product, Price, Place and Promotion), and not only about the Product.
Product :
When deciding which strategy to go for, there are a few elements to consider – firstly whether company provides a good or a service.
In the case of a good, it is possible to think of products for specific target markets; in the case of services, the factors in the image below should be considered.
People Processing: for this kind of services, customers are “part of the production”.
In this context, a physical local presence is needed. We can see this type of service in hospitals, restaurants or hotels.
It is therefore very difficult to standardize, due to the involvement of customers in the production of the service. MS 64 Solved Free Assignment 2022
Possession processing: customers in this type are not taking part in the “production”, but their goods are.
We take this type of service in the fields of car repairs, transport of goods or when we hire an electrician.
In this type of service, a lower degree of customer contact needed, compared to the previous case.
Information-based services: this kind of service collects and handles data to create value.
Customers are taking minimal involvement in the “production” process. Telephone companies, database providers, news and similar are using this type of service to create value. MS 64 Solved Free Assignment 2022
Standardization suitability in this type of service is effective, due to the virtual nature of these services.
Price :
When considering changes and adaptations in the price, some factors which can influence the decisions.
First of all, we should look at what internal factors can impact the decision. Production location can influence due to the possibility of additional costs.
Market entry modes are also responsible for price changes, when we use for example exporting or licensing and franchising.
Among external factors, local government influence and constraints should be taken into account, in the forms of taxes, import controls or tariffs.
It is also important to analyze the macroeconomic situation of the target market, in relation to e.g. inflation and exchange rate fluctuation.
Place : MS 64 Solved Free Assignment 2022
Above we can see some external factors influencing the choice in terms of distribution (place).
It is extremely important for the company to conduct market research about the specific geographic characteristic of the country before launching a new product: the development of infrastructure in the country,
for example, ensures the mobility of labor and capital within/from the economy.
Another external element to take into accounto is the country’s economic development stage, which provides information about the profitability in the long run: it helps decide whether to enter the market immediately, or to wait a little longer.
Promotion : MS 64 Solved Free Assignment 2022
In advertising a product or service, a couple of difficulties could be met, when entering a new market.
It is always appropriate to consider the differences that arise between domestic and target markets: first and foremost, differences in terms of culture, value patterns and language.
Given the current historical phase, it is also important to analyze the differences in the main digital channels and users of the different types of media.
Typically, when it comes to promotion, there are so many differences between the domestic and foreign markets that it sometimes becomes essential to profit of the expertise of a local company. MS 64 Solved Free Assignment 2022
Q5.Outline the procedure for conducting international marketing research, giving suitable example.
Ans :- DESK RESEARCH
Desk research basically involves collection of information from documentary sources or other published and unpublished sources.
In other words, information and data already exist in published or unpublished form.
Through desk research the sources of such data are searched and relevant documents, publications etc. are collected. MS 64 Solved Free Assignment 2022
This stage of searching for sources of published or what is also called secondary data, is also referred to as bibliography research or library research.
Search for the sources of secondary data or the collection of documents etc. is only the preliminary part of desk research.
The actual desk research involves compilation, processing and analysis of secondary data in accordance with the objectives of research.
In international marketing research, desk research plays a very important role.
In respect of most of the countries, a good amount of general economic, political and market information is available from secondary sources.
Information on the countries’ industrial and economic profile, government policies and regulations, size, composition and destination of foreign trade and host of other general information is often available for desk research.
Very often only desk research may serve the purpose when limited and general types of information is required.MS 64 Solved Free Assignment 2022
Desk research also provides background information for selection of the most promising foreign markets for in-depth investigation.
It can also point out specific factors that should be carefully looked into.
Desk research therefore could be used for general and limited information on foreign markets as well as the preliminary step for effective planning and conduct of survey research in foreign countries.
Sources of Data :
The key to successful desk research is the knowledge of how to find out relevant sources of required data and how to collect and make use of them.
There could be numerous specific sources of information but it is neither possible nor necessary to tap all such sources. MS 64 Solved Free Assignment 2022
It is therefore necessary to classify sources according to their relative importance.
The principal sources of information can be classified under specific categories like
• Government sources
• Semi-government sources
• Private sources,
• International sources
• Government Sources
Governments in all countries generate a wide variety of information and data that are useful and relevant to marketing.MS 64 Solved Free Assignment 2022
Information provided by governments covers wide areas like population, economy, policies, programmes, industries, institutions, rules and regulations etc. and are published in the forms of reports, documents, journals, notifications etc.
The governments in different countries are the largest generators of information and data useful for international marketing.
Semi-Government Sources :
In many countries there are specialised semi-government agencies or institutions charged with specific tasks such as monitoring of consumption trends, foreign trade, industrial development, income distribution, purchasing power of people, health, education etc.
These institutions usually carry out regular studies primarily to help and guide government policy-making.
The reports and publications of these institutions contain valuable information relevant for marketing.
Private Sources :MS 64 Solved Free Assignment 2022
There are research institutions, publishing houses, banking and financial institutions, chambers of commerce, trade associations and a host of others similar organisations which collect, process and disseminate different kinds of information in their respective areas of concern which could be relevant to international marketing.
International Sources :
International organisations within and outside the UN system publish a wealth of statistical data and information relating to markets.
The important ones among these organisations are:
Food and Agricultural Organisations (FAO), International Labour Organisation (ILO), United Nations Conference on Trade and Development (UNCTAD), UN Economic Commission; MS 64 Solved Free Assignment 2022
International Monetary Fund (IMF), Organisation for Economic Cooperation and Development (OECD), International
Trade Centre (ITC), and number of others.
Many developed countries have set up ‘Import Promotion Office’ (IPO) to assist developing countries to export their goods to the developed country markets.
Valuable information on foreign markets is available from the IPOs of different countries.
The diplomatic missions located in the exporter’s country can often provide a great deal of information about their respective countries and guide the researcher on other sources of information. MS 64 Solved Free Assignment 2022
A plethora of individual sources of secondary information as described above, are available at the national and international levels for desk research.
A desk researcher has to be selective in choosing the appropriate material for research-otherwise he might get lost in the wilderness of irrelevant data which he does not really need.
It is there fore important that the researcher evaluates the sources in terms of his particular need. The following criteria could be used for evaluating sources of secondary data.
Coverage: Is the source likely to cover the subject of research comprehensively and precisely?
Level: Is the level of information too high, too low or just right for the purpose of research?
Emphasis: Does the material focus on the most relevant aspects of the subject?
Timeliness: Is the material up-to-date or outdated for the purpose of research?
Accuracy: How accurate and reliable the information is? Who originally collected it and for what purpose? MS 64 Solved Free Assignment 2022
Web Sites : A lot of information is available on websites of the above mentioned sources.
For example ESOMAR, a leading international association for marketing and opinion research has very useful information on its website www.esomar.org ESOMAR unites 4000 members spread over 100 countries. It offers a wide scope of publications.
Also most of the leading newspapers and magazines are available in some form on the internet.
These can be ‘used as an invaluable resource on companies and markets Internet can also give you access to libraries, government statistic, company information, product design and much more. MS 64 Solved Free Assignment 2022
There are number of other Indian and foreign websites which provide a rich data on international marketing like review of sociocultural, political, technological environments foreign exchange information (balance of payments, interest rates, etc.), resource information, market potential, prescriptive information (Laws, regulations etc.) etc.
You may also use general search engines like Yahoo, Google, Excite etc, for searching relevant information on the internet.
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