Export and Import

Q.

Differentiate between contract manufacturing and setting up wholly owned production subsidiary abroad.

Q.

Outsourcing a part of or entire production and concentrating on marketing operations in international business is known as:

1. Licensing

2. Franchising

3. Joint Venture

4. Contract manufacturing

Q.

Which one of the following modes of entry brings the firm closest to international markets?

1. Contract manufacturing

2. Licensing

3. Franchising

4. Joint venture

Q.

In what ways are exporting/importing better than setting up wholly owned subsideries abroad?

Q.

Mr. Shah is a businessman in Gurgaon he manufactures scooters. His son after doing an MBA in USA returns to India and suggests that they should set up a fully owned factory in Bangkok for supplying to customers in South East Area and the Middle East. Mr. Shah, however, does not agree to his proposal and wants to set this unit in South India. They are having a debate in this. In your opinion with whom you agree. Give reasons for support of your answer.

Q.

What are the benefits of entering into joint ventures?

Q.

Enumerate limitations of contract manufacturing.

Q.

In 2005 Elharti and Airtel joined their hands and proved that they are the biggest players in the telecom sector. Identify this example is related to which type of enterprises. Elaborate its concept and features in your own words.

Q.

Exporting is not a feasible option when import restrictions exist in a foreign country.

1. True

2. False

Q.

Exporting incurs additional costs in packaging, transportation and insurance.

1. True

2. False

Q.

The local manufacturer loses control over the production process in the case of contract manufacturing.

1. True

2. False

Q. Exporting is a feasible option when import restriction exists in a foreign country.

1. True
2. False

Q.

Contract manufacturing can be used for the assembly of components into final products.

1. True

2. False

Q. Select the proper option from the options given below and rewrite the sentences.

Major items ________ are chemicals, crude oil and petroleum products, edible oils, electronic goods, gold and silver, pearl and precious stones etc.

(a) Exported by India
(b) Not exported by India
(c) Imported by India

Q. Exporting incurs no cost in packaging, transportation and insurance.

1. False
2. True

Q. Match the correct Pairs.

Group 'A'	Group 'B'
a) Intangible Goods	1) Importer Exporter Code
b) Franchising System	2) Direct Export
c) F.D.I.	3) When the goods are sent by air
d) I.E.C	4) When the goods are sent by road
e) Airway Bill	5) Complete control over operation
	6) Fast food chain of restaurants
	7) Visible goods
	8) Invisible goods
	9) Global International Organization
	10) Foreign Direct Investment

Q. Write short notes of the following.

International Business.