International Trade Management

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National Institute of Business Management
Chennai - 020

FOURTH SEMESTER MBA

Subject : International Trade Management

Attend any 4 questions.  Each question carries 25 marks
(Each answer should be of minimum 2 pages / of 300 words)




1.            Explain the features which distinguish foreign trade from domestic trade.

Answer: Trade means exchange of goods. What difference, then, does it make to the theory of trade whether these goods are made in the same country or in different countries?

Why is a separate theory of international trade needed? Well, domestic and foreign trade are really one and the same.

They both imply exchange of goods between persons. They both aim at achieving increased production through division of labour.




2.            Describe the important theories that explain the basis of International Trade.

Answer: International trade theories are simply different theories to explain international trade. Trade is the concept of exchanging goods and services between two people or entities. International trade is then the concept of this exchange between people or entities in two different countries.

People or entities trade because they believe that they benefit from the exchange. They may need or want the goods or services. While at the surface, this many sound very simple, there is a great deal of theory, policy, and business strategy that






3.            What are the factors determining terms of trade? Explain.
Answer: Terms of trade are influenced by a number of factors. Important among them are given below:
1. Elasticity of Demand:
The elasticity of demand for exports and imports of a country influence its terms of trade. If the demand for a country's exports is less elastic as compared to her imports, the terms of trade will tend to be favourable because the exports can command higher price than imports.
On the other hand, if the demand for imports is less elastic than that for exports, the terms of trade will be unfavourable.
2. Elasticity of Supply:




4.            Write an essay on International Monetary Fund.

Answer: The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., in the United States, of 188 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. Formed in 1944 at the Bretton Woods Conference, it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international payment system.




5.            What are the buyers obligation under Free On Board (FOB)? Explain.
Answer:



6.            Write a descriptive account on consumer behavior and role of marketing.

Answer: Consumer Behaviour refers to the study of buying tendencies of consumers. An individual who goes for shopping does not necessarily end up buying products. There are several stages a consumer goes through before he finally picks up things available in the market. Various factors, be it cultural, social, personal or psychological influence the buying decision of individuals.
Marketers need to understand the buying behaviour of

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