International Marketing

April 2023 Examination

Q1. You are a manufacturer of cycles from India and are keen on expanding your business
globally. Discuss the challenges of marketing your product globally? (10 Marks)

Ans 1.

Introduction

A business can be specified as an organization or company participating in commercial,

commercial, or expert tasks. The factor for running a business is arranging any financial products
or items and solutions. Businesses can be earnings or nonprofit companies fulfilling a social
cause or a charitable goal. Businesses can range in scope and range from single proprietorships
to huge, varied global companies.

Running a business in our home country effectively and broadening it worldwide are two
different points. Various global elements can influence the running of the business. The
development of a business needs a high series of resources that can be utilized to complete the
process successfully. These resources consist of funds, personnels, etc. A company needs to have
the availability of these resources to succeed in its expansion process. A company has to be
geared up with all the funds and various other resources to make its growth effective.

Concepts and applications

The business expansion comes with various challenges that a company faces in the process-

a) Legal and regulatory compliance- The most complex part of global development is
complying with the foreign land's regulations and standard procedures. Conformity is among the
difficulties of global development that we should initiate preparing from the beginning.

The critical challenge comes under taxation, trading regulations, trading requirements, staff
member legislation, and other aspects. Before getting in, we must assess the whole trading scene
in the foreign market.
Businesses may require local certification of trading approval from the government authority of
the international land. Failing to meet the legal requirements results in fines, penalties, and
trading restrictions.

b) Cultural differences- Considering the global expansion of a business, we have to consider

the broad cultural diversity around the globe. While international advancement opens up new
possibilities, the risk of misunderstanding and miscommunication due to cultural differences
always exists.

- If our firm is in India and plants its global growth in Japan. Here, the critical challenge of
development worldwide would be finding a society different from ours. We must recognize their
societies and practices. Communicating with the consumers, beliefs, greeting, non-verbal and
spoken communication cues, worths, and so on, must be considered and understood to guarantee
business success.

On the other hand, we also require comprehending the business markets. If we use the same
strategy as in our residential market, it might come a cropper.

c) Understanding political risks- Political understanding of the nation where we are broadening
our business is basic as political landscapes are developing continuously. To conquer this global
development difficulty, we must ensure that we are upgraded with the here-and-now political
circumstance. We should comprehend the issues and fundamental problems, such as corruption
degrees and complexity within the foreign market. This will aid us in decreasing the political
dangers. As we all understand, political dangers are all over, and we must reduce them and make
earnings.

d) Managing organizational communication- How we manage our global growth figures out a
firm's success in the new market.

We need to make sure that our group communication is well organized. How we report, connect,
and keep an eye on our colleagues influences the success of a business in the global market.

Making a few leadership rules, a standard procedure, methods, and an efficient system can help
us conquer this global development challenge.
e) Understanding the marketplace strategy- Understanding our new consumers is a specific
way to sell our items or solutions in the foreign market efficiently. We will understand how to
place and promote our brand as soon as we know the new market.

One key element of successful global marketing is transcription. Using this transcription process,
we can personalize and edit our advertising and marketing strategy and material to the needs of
the new market.

This way, we will adapt much better, and our chances of effective growth in the global market
will also enhance.

f) Managing human resources operations- Taking our business to foreign markets require a
considerable workforce. The workforce should be more than just substantial in numbers but
gifted and knowledgeable to deal with business operations in a foreign land.

We could require making and working with a new labor force notified choices concerning
sending out existing employees of the organization with the new ones. If we decide to work with
a local ability, which is helpful, we should draw in and evaluate the global skill pool.

We must strategize the employment procedure to ensure that suitable ability is employed. We
must make sure to put the neighborhood abilities in such a way that will assist us in getting
insights and provide us with instructions to navigate the new market.

Conclusion

As gone over previously, global expansion is a difficult task. It calls for a great deal of
preparation and strategies that must be implemented following the correct framework
constructed by the top administration. Every step should be taken very carefully, as an
inappropriate activity can lead to enormous losses for the business.
Q2. “Go Local “is a term that is having resonance with countries today to promote Local
consumption. In your view is it positive for nations to produce locally and avoid
globalization? (10 Marks)

Ans 2.

Introduction

Going local can be called utilizing your area-produced goods and solutions to reduce the use of
imported materials from various other countries. These benefits regional vendors that make and
market the same products we make a living and import. It is a good initiative for the government
as it can raise our local vendors' source of income and reduce our county's total imports. As most
of us recognize, imports are not healthy for any country, so going to your area can aid us in
preserving our country's funds and boost our GDP and per capita income.

With advantages, there are a lot of negative aspects of going neighborhood campaign as the top
quality of the locally generated goods cannot match the quality of the goods created worldwide
that we import. And sometimes, an item is unavailable in the neighborhood market, and the
country needs to import that item to fulfill the need.

Concepts and applications

Going locally is positive for the countries as it has numerous advantages.

a) Increase the GDP of the country- If the federal government advertises going regional, this
will enhance revenue for the neighborhood companies. A rise in the income of the country's
populace will help the country enhance its GDP. When the country's GDP is boosted, it is a great
indicator. This means that the federal government is getting richer and has countless benefits.

b) Increase per capita income- Use neighborhood methods in your area-generated products.
This leads to a rise in neighborhood sales, which means global products are limited. The
country's per capita income will instantly increase if there is less selling of international
developments. Per capita income can be specified as the total earnings of the country divided by
the total population of the country. A country with a high per capita income is a blessed
economic situation, and an economic situation with a frequently climbing per capita income is
also privileged.
On the other hand, if the country's per capita income is reducing, the economic climate problem
is terrible, and the government requires taking the necessary actions to counter this circumstance.

c) Tax revenue- If the people of the economic situation are wealthy and are making well, what
more does a country requires? The country's individuals are making well, so they can pay high
taxes to the government. Higher taxes indicate high revenue for the country. There are various
benefits of high tax income in the country. The country will be thriving and pleased. And if the
country's tax revenue is enhanced, it will assist the government in developing far better roads,
facilities, health centers, and universities.

d) Less expenditure- Going regional campaign can increase the country's revenue. A boost in
revenue can result in less expense. All of us know that going local includes a country advertising
the usage of in your area made products that will boost the sales of the neighborhood vendors.
There is no requirement for the country to import items from outside the country if individuals
are using in your area created items. Eventually, this will decrease the country's expenses, which
is a benefit that includes the initiative of going to the neighborhood. It will immediately increase
revenue and cost savings if the country's expenditures are minimized.

If the federal government appropriately concentrates on this campaign, it will benefit the country
in the long term. A country must prepare and carry out various approaches to accomplish this. If
all the actions are taken care of, and no mistakes are committed in the procedure, it can boost the
country's GDP and per capita earnings.

If the country cannot collect the called-for resources to make a product, it has only one choice to
import from various other countries. This will result in a rise in their imports and a boost in their
expenditure. This will ultimately reduce the country's revenue and affect the economic situation's
per capita income. A business needs to execute a method and create to raise exports and decrease
imports to profit from going locally. Going locally implies promoting locally-made products and
ensuring that local vendors make top-quality products that match the imported items.

Conclusion

Going regional is a country's best initiative to advance its economy. Our country has begun an
initiative of Make in India that has caused the rise of manufacturing and production plants
throughout the country. Many factories have opened in India due to the Make in India effort,
which has aided us in reducing our imports, boosting our exports, and earning even more. It has
additionally caused a decline in the stability of the [products over other countries.

Q3. Read the following case study carefully and then answer the questions that follow:

India achieved a record food grain production of 281.37 million metric tons due to fertile
soil, good rainfall and use of genetically modified seeds. From a net importer of food India
today exports food grains to various countries like, Iran ,Qatar, UAE, Indonesia etc.

Ironically India is home to the largest number of hungry people.

Around 213 million go hungry and are malnourished people as they do not get proper two
meals a day. Food distribution channels are weak and about 10 % of the stored food grains
is being wasted and eaten up by rats and birds while human population is deprived of
food.

a. Explain whether India should continue to export food grains to various other countries?
(5 Marks)

Ans 3a.

Introduction

Most of us recognize that India houses millions of underprivileged individuals who rarely get
two dishes for the day. These individuals constantly require much more standard centers,
consisting of correct food. As mentioned in the concern, 10 percent of the kept food grains are
thrown away and eaten up by rats and birds while these individuals do not reach consume.

Concepts and applications

Exports are a huge part of our country's earnings, and in the past 5-6 years, India has enhanced
its exports as it has started creating various kinds of material that we used to import. It is a good
sign for our economic climate. We need to figure out what the problem is going on in our
residence. Do all our residents obtain the required food? The government must figure out the
problems because our citizens need more essential food facilities while we export food grains to
other parts of the world. It is vital to offer in your home, go outside, and does charity work.

Remarkably, our country has raised exports and decreased imports of food grains. This is aiding
the economic climate to stay stable and instead grow at a much faster pace. On the other hand,
what about those parts of our country and not getting the right food? They deal with them
regularly to obtain food. The making member of the family is working hard to put food on his
table to make sure that his family can eat; however, he is still unable to attain that necessary
thing. The government needs to carry out various approaches to address this issue.

As every family member is essential, every citizen of our country is necessary. It is the
responsibility of the government to look after every citizen to ensure they can cover their
fundamental requirements.

Conclusion

Other than that, exports indicate that our country is proceeding. Our country has come a long
way from different essential products and products to exporting the same products and materials.
10 percent of the stored food is thrown away annually, and 10 percent can be conserved and
offered to those who need it. The government should take both things in hand, exporting the
products and taking care of the residents.

b. Suggest a strategy how India can solve the above dilemma and embark on large scale
food grain exports? (5 Marks)

Ans 3b.

Introduction

This is challenging as the government has to guarantee that the people of India are provided with
the standard food facility to export food grains to gain the optimum. The government must
satisfy both things, including its people, and accomplish ohmic fulfillment.

Concepts and applications

The government should produce a technique including collecting the data of the people who
cannot meet their eating demands. The data must then be made use of to resolve the concern. The
complete exports need to be lowered by the food these people require. This will make individuals
to get the food they require in a day, and the government will also be able to export their
products and produce extra income, as exports are significant for any country. Every government
needs to make sure that it can make exports to various other countries and earn extra cash. This
will solve the issue from all directions.

As we have gone over the value of exports, we need to understand the value of making the
country's citizens happy and healthy. A healthy citizen is a possession of the country. He can be
helpful to the nation as human resources are deficient worldwide, and India is the globe's biggest
carrier of human resources. They can take the country and touch the skies if its people are
healthy. If the person is experienced in any market, be it making, etc., the country can take
advantage of him. Human resources are significant for the country. India is the biggest populated
country and has the most incredible variety of human resources that can be utilized as a
workforce in numerous fields in different parts of the world.

Both the components, including the exports that will produce income and reduce the expenses of
the country and healthy people that are called for to perform major works, play a vital role in the
country's advancement. In the concern, a big issue is pointed out that can be resolved if the
government takes proper procedures to deal with the trouble. It is vital and otherwise taken the
ideal actions, which can cause losses for the country and the economic climate.

Conclusion

If the above approaches are adhered to, the country's dilemma will be resolved, and it can
effectively attain its purposes and objectives.