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International Business
April 2025 Examination
Q1. A lot of products made in China
dominate our markets and have made production unprofitable for Indian
manufacturers. What would be your view on allowing the entry of Chinese
products in India? (10 Marks)
Ans
1.
Introduction
The
influx of Chinese products into Indian markets has significantly reshaped
domestic industries, raising concerns over economic sustainability, local
manufacturing viability, and trade imbalances. China, known for its cost-effective
and mass-scale manufacturing capabilities, has flooded Indian markets with
affordable alternatives in sectors such as electronics, textiles, and consumer
goods. While these imports benefit Indian consumers by providing cheaper
alternatives, they pose a serious threat to domestic industries, particularly
small and medium enterprises (
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Q2. Leading critics of WTO
including economists such as Dani Rodrik and Ha Joon Chang have submitted that
WTO only serves the interests of MNCs, undermines local development, penalizes
poor countries and is causing increase in inequality. Express your view on the
above and suggest the changes that in your opinion can bring improvement to the
developing countries. (10 Marks)
Ans 2.
Introduction
The
World Trade Organization (WTO) was established in 1995 with the objective of
promoting free and fair global trade by reducing trade barriers, resolving
disputes, and ensuring that international trade flows smoothly. However, over
the years, the organization has faced criticism from leading economists such as
Dani Rodrik and Ha-Joon Chang, who argue that it disproportionately benefits
multinational corporations (MNCs) while undermining local industries in
developing countries.
Critics
contend that WTO policies,
Q3. Read the following case study
carefully and then answer the questions that follow: French company Jeanne
Oliver Perfumes is contemplating to introduce a perfume by the brand name
SK, named after
an Indian charismatic
celebrity Shah Rukh
Khan. The perfume is available in
two variants, SK Silver for men and SK Gold for Women. The perfumes are
packaged in 100ml pump spray bottle. The strategy would be to capture a large
number of consumers who are oriented towards film celebrities. Advertising is
also planned through television satellite channels and magazines. You are
required to analyze the following:
a. In your opinion what pricing
strategy you would like to apply during the launch of the product? (5 Marks)
Ans
3a.
Introduction
Pricing
strategy plays a critical role in the successful launch of a new product,
especially in a competitive market like the perfume industry. Jeanne Oliver
Perfumes, with its SK brand endorsed by Shah Rukh Khan, aims to capture a large
consumer base attracted to film celebrities. Given the brand association and
the premium nature of perfumes, selecting the right pricing strategy is
crucial. The pricing should reflect the brand's positioning, market
competition, and perceived
b.
Due to low cost of manufacturing in India the French company wishes to
export the product from India to other countries. Examine in your view the
various type market entry strategies available to the French company and which
strategy would you use to market the product? (5 Marks)
Ans
3b.
Introduction
Jeanne
Oliver Perfumes plans to manufacture SK Perfume in India due to lower
production costs and export it to international markets. Choosing the right
market entry strategy is crucial for ensuring a smooth expansion while
maintaining cost efficiency and brand control. Various strategies, such as
exporting, licensing, franchising, joint ventures, and direct investment, can
be considered. The choice of
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