Description

International Marketing

April 2025 Examination

 

 

Q1. What are your views on Foreign Direct Investments FDI and FII and how do both impact our country?  (10 Marks)

Ans 1.

Introduction

Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) are two crucial forms of foreign capital inflows that significantly influence a nation’s economic growth. While FDI involves long-term investment by foreign entities in physical assets such as factories, technology, and infrastructure, FII pertains to investments in financial assets like stocks and bonds, typically in the short term. Both forms of investment contribute to the economic development of a country but differ in their mechanisms, stability, and impacts.

India, as a rapidly growing economy, has been a favorable destination for both FDI and FII.

 

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Q2. Many countries today are promoting “Go Local “to promote Local consumption. What is your view on nations promoting local production and how does it impact globalization?  (10 Marks)

Ans 2.

Introduction

The “Go Local” movement has gained significant traction in recent years as nations emphasize local production to enhance self-reliance, boost domestic industries, and preserve cultural identity. This approach, driven by economic and environmental considerations, encourages consumers to prefer locally-produced goods over imports. By promoting local production, countries aim to strengthen their economies, reduce reliance on global supply chains, and create opportunities for small and medium-sized enterprises (SMEs).

However, this trend has implications for globalization, a phenomenon that thrives on

 

 

Q3. Read the following case study carefully and then answer the questions that follow: Your firm manufactures Incense sticks also called Agarbatti, in India and desires to market them globally. Although there is competition, you see that Mauritius has a huge potential and plan to expand your company’s retail operations in Mauritius.

1. a) Discuss the market entry strategy that you would recommend to launch your company products in Mauritius. (5 Marks)

Ans 3a.

Introduction

Expanding into the Mauritius market offers significant opportunities for incense stick manufacturers, given the cultural and religious relevance of these products in the region. The nation’s multicultural society, with a significant Hindu population, creates a natural demand for incense sticks in religious ceremonies, aromatherapy, and everyday use. However, entering a new market requires careful planning to overcome competition and establish a strong brand presence. An effective market entry strategy should focus on understanding consumer

 

1. b) How does global pricing policies help in launch of products. In your view which pricing policies do you think would be appropriate while launching of Incense sticks in Mauritius? (5 Marks)

Ans 3b.

Introduction

Pricing is a critical component of a successful product launch in international markets. Effective pricing strategies align with consumer purchasing power, market demand, and competition. In Mauritius, where incense sticks hold cultural and spiritual value, a well-considered pricing policy can ensure market penetration and profitability. Global pricing policies such as cost-based pricing, competition-based pricing, and value-based pricing