MKT630-International Marketing Mid Term Subjective Questions From Past Papers 2007-2013
MKT630-International Marketing Mid Term Subjective Questions From Past Papers 2007-2013
MKT630-International Marketing Mid Term Subjective Questions From Past Papers 2007-2013
Question (Marks- 3)
List down the subsidies that a government offers to promote exports?
Question (Marks- 3)
During research, international marketing researcher faces some issues, discuss three of
them.
Question (Marks- 5)
International marketers are working in more complex legal system than local
marketer.Indicate those issues that an international marketer faces world wide.
Question (Marks-5)
Compare and contrast closed-end questions and open-end questions for gathering
data.Differentiate these two terms with at least one example
Question (Marks-3)
List down 3 variables of economical environment?
Question (Marks-3)
Difference between direct exporting and indirect exporting
Question (Marks-5)
How marketer can change implication of changing exchange rate?
Question (Marks-5)
Define terms of shipment
1. Ex-works (EXW)
2. Free on Board (FOB)
Question (Marks-5)
What things international marketer should keep in mind before entering in foreign
market?
Question (Marks-5)
In the scenario of international marketing it is necessary to know about the competitor
activities. Make list of the information that an international marketer need to know about
competitor?
Question (Marks-5)
Now days banking is involve in selling electronic cards, being a branch manager how can
you build customer-relation effectively?
Question (Marks-5)
How exploratory research and descriptive research differ from causal research give
justification?
Question (Marks-5)
Rational decision making is impossible without relevant information by marketer.
According to your best knowledge, what kind of information that marketer require with
respect to product?
Question (Marks-5)
List down the most important assumptions of Comparative Advantage Theory
Question (Marks-5)
International marketer always seeks those countries for export that constitute valuable
contribution for his company. To do this what he would consider in preliminary screening?
Question (Marks-5)
Thousands of companies in Pakistan are doing their businesses in international market.
What are the core benefits of doing business internationally?
Question (Marks-5)
Global marketing passes through different evolutionary changes, describe all steps in
detail.
Question (Marks-5)
With reference to your course, explain four pillars of international Marketing?
Question (Marks-5)
Write down the core concept of “Mercantilism Classical country based theories” in your
own words?
define fixed exchange system and flexible exchange system and their characteristics
(5 marks)
• Fixed exchange rate system (the exchange rate is fixed)
• Flexible (floating) exchange rate system (the exchange rate is determined by market
forces and changes
freely)
• Managed exchange rate system (the exchange rates are allowed to move only within
limits - if the exchange rate is moving out of the desired limit then central banks buy or
sell the currencies to control the exchange rate)
Fixed exchange-rate system:
• Reduce risk of international trade
• Important anti-inflationary tool
• Wide swings in the values of key currencies can disrupt sound international investment
decision making
Question: What is exchange rate system and define fixed, variable and manage
exchange rate system 5
Answer:
Exchange rate systems:
Exchange rate is the price of one country’s currency in terms of another country’s
currency.
Three types of exchange rate systems are given in the following:
• Fixed exchange rate system (the exchange rate is fixed)
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• Flexible (floating) exchange rate system (the exchange rate is determined by market
forces
and changes freely)
• Managed exchange rate system (the exchange rates are allowed to move only within
limits -
if the exchange rate is moving out of the desired limit then central banks buy or sell the
currencies to control the exchange rate)
Mr. Ahmad launch a new product for cloths washing 1 year ago and then the demand for
that product is much greater but after 1 year many substitutes are available due to
competitors so sale level decreases. Question :Define at what stage of that PLC is that
product launched by Mr. Ahmad 3
marks
Q: International marketer always seeks those countries for export that constitute
valuable contribution for his company. To do this what he would consider in
preliminary screening?
Answer:
Preliminary Screening - involves defining the physical, political, economic, and cultural
environment of the countries
Demographic/Physical Environment:
• Population size, growth, density
• Urban and rural distribution
• Climate and weather conditions
• Shipping distance
• Product-significant demographics
• Physical distribution and communications network
• Natural resources
Political Environment
– System of government
– Political stability and continuity
– Ideological orientation
– Government involvement in business
– Government involvement in communication
– Attitudes towards foreign business (trade restrictions, tariffs, non-tariff barriers,
bilateral trade
agreement)
– National economic and development priorities
Economic Environment
– Overall level of development
– Economic growth: GNP, industrial sector
– Role of foreign trade in economy
– Currency, inflation rate, availability, controls, stability of exchange rate
– Balance of payments
– Per capita income and distribution
– Disposable income and expenditure patterns
Social/Cultural Environment
– Literacy rate, educational level
– Existence of middle class
– Similarities and differences in relation to home market
– Language and other considerations
Q: Write down the core concepts of “Mercantilism classical country based theories”
in your own words.
Answer:
Mercantilism:
This is an old 16th century economic philosophy that attempted to explain how countries
may become prosperous and strong. Salient points of this philosophy are in the following;
• Country’s wealth is measured by its holdings of gold & silver (reserves of modern era)
• Country’s goal should be to enlarge those holdings
• To do this a country should maximize difference between its exports & imports
• A country should then promote exports & discourage imports - if exports are more than
imports foreigners have to pay the difference in gold & silver
• Today’s “unfavourable balance of trade” when exports of any country are less than its
exports, is the extension of the same idea
• With larger holdings of gold and silver kings could have more wealth – and hence could
afford larger armies to expand kingdoms
• This approach would make exporters.
Q: Make list of those subsidies that a government offers for exporter to promote
export. Answer:
Promotion of exports by governments:
Export subsidies:
• Tax breaks
• Direct payments to producers
• Product price support
• Cheaper resources (i.e. land, utilities)
• Public services provided at lower cost
Establishment of export trade / processing zones
Export financing programs
Training / assistance programs
Other governmental assistance
Q: International marketers are working in more complex legal system than local
marketer. Indicate those issues that an international marketer faces world wide.
Answer:
Legal issues faced by marketers in international markets:
Variations in legal environments, rule of law, laws, and legal systems affect foreign
business firms in a Number or areas. Key areas of business that are affected by legal
environments are
listed below;
• Laws concerning employment and labor affect managing of workforce in international
markets.
• Different laws in foreign countries regulate financing of operations by foreigners. In
some countries foreign firms are restricted access to local deposits / funds.
• Various countries around the world have different laws concerning marketing of
products, especially food products, pharmaceuticals, hazardous materials and strategic
products to a nation.
• Countries also control and regulate developing and utilizing of technologies through
various laws and regulations.
• Many countries also have different laws and regulations that affect ownership of
businesses by foreigners.
• Countries also regulate / restrict remittances to foreign countries and repatriation of
profits.
• Some countries regulate closing of operations and in some countries businesses are not
allowed to close shop especially when they have sold products that have guarantees and
warranties from the foreign firms.
• Various countries around the world have implemented different trade and investment
regulations.
• Countries also have their own taxation requirements, systems and laws.
• Countries also differ on the accounting reporting requirements from various categories
of firms.
• Legal environments of countries vary that also affect dispute resolution situations and
contractual relationships.
• Countries around the world have also actively implemented environmental regulations
that affect businesses.
Q: Compare and contrast closed-end questions and open-end questions for
gathering data. Differentiate these two terms with at least one example.
Answer:
Open-ended questions usually have no real 'right' or 'wrong' question. It's what you think
(like an opinion question). Close-ended questions have a definite 'correct' answer.
Open-ended questions Open ended questions allow respondents to answer them in any
way they choose. An example of an open-ended question is asking the respondent to state
five things that are interesting and
challenging in the job.
Another example is asking what the respondents like about their supervisors or their work
environment. A third example is to invite their comments on the investment portfolio of
the firm.
Closed-ended questions
A closed question in contrast would ask the respondents to make choices among a set of
alternatives given by the researcher. For instance instead of asking the respondent to state
any five aspects of the job that she finds interesting and challenging, the researcher might
list 10 or 15 aspects that might seem interesting or challenging in jobs and ask the
respondents to rank the first five among these in order of their preference. All items in a
questionnaire using a nominal, ordinal or like or ratio scale are considered closed.
Closed questions help the respondents to make quick decisions to choose among the
several alternatives before them. They also help the researcher to code the information
easily for subsequent analysis. Care has to be taken to ensure that the alternatives are
mutually exclusive and collectively exhaustive. If there are overlapping categories or if
all possible alternatives are not given the categories are not exhaustive, the respondent
might get confused.