UNIT 4

1. What are the roles of banks in the four common payment methods?
- Active role: Banks get involved in the payment process, supporting both Im&Ex - LC -
Check the accuracy of docs and guarantee payment
- Passive role: transfer docs and funds - DC, open account, advance payment
2. What is the difference between documents against payment (D/P) and documents against
acceptance (D/A)?
- D/P: The buyer can only receive the documents once he has paid the sight draft. The
Seller retains title to and controls over the Goods until he gets payment
- D/A: The buyer can get the documents just by accepting payment on a future date. The
buyer writes the word “ACCEPTED” in the draft and signs it.
3. How does a documentary collection differ from a letter of credit as a means of financing
international trade?
- Documentary Collection: The bank acts as an intermediary. The banks do not verify the
document, take risks, or guarantee payment. The banks just control the flow of
documents.
- L/C provides increased assurance to both exporters and importers as long as they fulfil
their obligations. The bank not only verifies the document’s accuracy and authenticity but
also guarantees payment.
4. When do people use the 4 payment methods?
- Open account: 2 sides have long-established trading relation
- Advance payment: 2 sides are unfamiliar
- L/C: The importer’s credit rating is questionable, and The exporter needs an L/C to
obtain financing
- Documentary Collection: There is an ongoing business relationship between the parties

UNIT 5
1. What is the difference between a selling concept and a marketing concept?
- Selling: persuading customers to buy products that you have already had, rather than
producing new products which customers may want
- Marketing: Finding out what kinds of products customers want and then producing them
2. Distinguish need, want, demand
- Needs are the basic human requirements such as air, food, water, clothing, and shelter to
survive
- These needs become wants when they are directed to specific objects that might satisfy
the need. Wants are shaped by our society
- Demands are wants for specific products backed by an ability to pay
3. Briefly describe the difference between a push strategy and a pull strategy. What are
some factors that affect the choice of an appropriate strategy?
 Pull strategy: A promotional strategy designed to create buyer demand for a product or
service. This approach aims to attract consumers toward a product.
Eg: Companies use social media platforms to create awareness about their brand and
engage with their target audience.
 Push strategy: A promotional strategy that involves “pushing” product to the target
audience through various marketing and advertising channels.
Eg: Companies run ads in trade publications to promote their products and encourage
channel members (wholesalers, retailers, distributors) to carry those products in their stores.
There are several factors that affect the choice of an appropriate strategy, including product
type, target audience, marketing conditions and business objectives.

4. What are the five generic strategies for blending product and promotional policies for
international markets? Describe each briefly.
 Produce/communications extension (dual extension) extends the same home-market product
and marketing promotion into target markets.
 Product extension, communications adaptation extends the same product into new target
markets but alter its promotion.
 Product adaptation, communications extension adapts a product to the requirements of the
international marker while retaining the product's original marketing communication.
 Product/communicnions adaptation (dual adaptation) adapts both the product and its
marketing communication to suit the target market.
 Product invention requires that an entirely new product be developed for the target marlet.

5. What is the difference between exclusive and intensive channels of distribution?

Give an example of a product sold through each.

 An exclusive channel is one in which a manufacturer grants the right to sell its product to
only one or a limited number of resellers.
Eg: New car dealerships, for example, in most countries reflect exclusive distribution. Thus
Honda dealerships cannot normally sell Toyotas and Chrysler dealers cannot sell Fords.

 An intensive channel is one in which a producer grants the right to sell its product to many
resellers.
Eg: Large companies whose products are sold through grocery stores and department stores
typically take an intensive channel approach to distribution.

6. Identify at least four factors that influence a company's product policies in international
markets.
  Companies undertake mandatory product adaptation in response to a target market's laws
and regulations.
 Companies also adapt their products to suit cultural differences.
 Although companies keep their brand names consistent across markets, they often create
new product names or modify existing ones to suit local preferences.
 Shortened product life cycles are affecting the timing of when to market internationally

UNIT 6
1. What are the major benefits of efficient logistics operation?
- Cost-saving, time-saving
- Punctual delivery, optimized distribution
- Improved cash flow
- Customer satisfaction
- Responsiveness
2. What may cargo handling services include?
- Cargo collection and consolidation
- Cargo forwarding
- Cargo tracking and tracing
- Transit warehousing
- Documentation handling
- Customs clearance
3. What are the five major logistics activities?
- Inventory management
- Material Handling
- Logistics communications
- Customer service
- Demand forecasting/planning
4. What business functions does the supply chain involve?
- Sourcing
- Procurement, manufacturing
- Material handling/forecasting
- Order processing
- Inventory management
- Transportation
- Logistics and customer service
UNIT 7
1. Why is marine insurance required?
 High probability of risks occuring in transit
 MI provides insurance cover for such losses
 MI is a customs in international trade
  Carrier’s liability is limited
2. What are the risks excluded from a marine insurance policy?
- Delay
- Wear and tear
- Inherence vice
- Ullage
- Willful misconduct of the assured
3. What documents are typically requested for marine insurance?
 Original Policy or Cert of Origin
 Invoices and packing scpecifications
 Original B/L or other transport docs
 Survey report or other evidence of loss or damage
 Landing account/ Weight notes at destination
 Any correspondence with carrier/ other parties
UNIT 9
1. Why is there a high percentage of failure in mergers and acquisitions
- Large or extraordinary debt
- Too much diversification
- Increased business complexity
- Slow pace of integration, Poor strategy (the way companies are combined)
- Clash of Corporate cultures, Inability to sync
- Managers overly focused on acquisitions
- Inadequate evaluation of target, unrealistic expectation
- Employees may be resistant to change

2. What are the reasons behind a horizontal merger?

- To reduce competition
- To increase market share
- To acquire additional plants and equipment
- To achieve synergy and economies of scale
3. What are the reasons behind vertical mergers?
- To guarantee the supply and cost of raw materials and components
- To be closer to the customers by cutting out the wholesales for example and dealing
directly with the retail trade