Description

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 (SMEs), which struggle to compete with low-cost Chinese products.

The debate over allowing Chinese products in India revolves around economic pragmatism versus national interest. While imposing strict trade barriers may protect Indian manufacturers,

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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, particularly those favoring free trade and globalization,

 

 

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:

 

1. 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

 

 

1. 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 strategy depends on market conditions, cost considerations, risk