q paper1


Section I

Q. 1) Explain the following concepts: – 15 marks

a) FDI

b) Demographic Segmentation

c) Contract manufacturing


e) Marginal cost pricing

Q. 2) Case study :

The public sector India Oil Corporation (IOC), the major oil refining and marketing company which was also the canalising agency for oil imports and only Indian company in the fortune 500, in terms of Sales, planned to make a profit into the foreign market by acquiring a substantial stake in the Balal oil field in Iran of the premier oil. The project was estimated to have recoverable oil reserves of about 11 million tonnes and IOC was supposed to get nearly four million tonnes.

When IOC started talking to the Iranian company for the acquisition in October 1998, Oil prices were at rock bottom ($11 per barrel) and most refining companies were closing shop due to falling margins. Indeed, a number of good oil properties in the Middle East were up for sale. Using this opportunity, several developing countries. “Made a killing by acquiring oil equities abroad”.

IOC needed Government’s permission to invest abroad. Application by Indian company for investing abroad is to be scrutinised by a special committee represented by the RBI and the finance and commerce ministries.By the time the government gave the clearance for the acquisition in Dec. 1991 the prices had bounced back to $24 per barrel. Adn the Elf of France had virtually took away the deal because the structure for such investments were not in place it, was reported.


1) Discuss internal, domestic and global environments of business revealed by this case. – 5 marks.

2) Discuss whether it is the domestic or global environment that hinders the globalisation of Indian business.-  5 marks.

3) What are the lessons of this case? – 5 marks.

Section II

Q.3) What do you understand by International marketing? Explain its features. – 10 marks.

Q.4) Explain positive and negative effects of trading blocs in international marketing. – 10 marks.

Q. 5) Discuss the role of MNCs in international trade with examples. – 10 marks.

Q.6) Justify the increasing emphasis on packing of goods for international marketing. – 10 marks.

Q. 7) Short notes: – 10 marks


b) Collaboration.

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