1.

As each country today thinks about restricting imports and protecting their markets,
what in your opinion still motivates firms to engage in international business?

Answer: Concept of international and global marketing

Worldwide showcasing alludes to advertising completed by organizations abroad or across
public boundaries. This procedure utilizes an expansion of the strategies utilized in the nation
of origin of a firm. Worldwide showcasing is essentially the utilization of advertising standards
to more than one country. Nonetheless, there is a hybrid between what is ordinarily
communicated as worldwide showcasing and worldwide promoting, which is a comparative
term. The convergence is the consequence of the course of internationalization. Numerous
American and European creators consider global promoting to be a straightforward expansion
of sending out, by which the showcasing blend 4Ps is basically adjusted here and there to
consider contrasts in purchasers and portions. It, then, follows that worldwide promoting adopts
a more normalized strategy to world business sectors and centers upon equivalence, all in all
the likenesses in shoppers and portions.

Quick change overruns all parts of activities in worldwide business sectors as well as the setting
where they occur. Not exclusively are the paces of mechanical advancement, information out
of date quality and the force of rivalry expanding at a disturbing speed in numerous businesses,
yet unexpected occasions are decisively changing the political and monetary setting in which
markets create and procedures are formed. As the geographic extension and size of activities
broadens endlessly further, the executives is confronted with the undertaking of coordinating
and controlling different and remote at different stages in the worth chain, frequently in
generally unique natural settings. Expanding power of rivalry in worldwide business sectors
comprises one more test confronting organizations at all phases of contribution in global
markets. As business sectors open up, and become more incorporated, the speed of progress
speeds up, innovation shrivels distances among business sectors and diminishes the scale
benefits of huge firms, new wellsprings of rivalry arise, and serious tensions build at all levels
of the association.

To make obstruction to advance the own items globally, nations can safeguard their own
organizations from unfamiliar contest. Or then again it very well might be to safeguard
purchasers from hazardous or unwanted items. Or then again it might try and be accidental, as
can occur with confounded traditions methodology. With this, it is valuable for the
neighborhood organizations to offer the items to homegrown individuals so nearby products
utilization would be expanded and homegrown work would likewise be expanded. Government
ought to roll out vital improvements in its international strategy and limit the association of
unfamiliar players to specific degree. These boundaries would assist the country with
developing and create with quicker speed and exceptionally compelling over the long haul.

Focuses for worldwide business

Expanded seriousness: Contest increments among homegrown and worldwide associations; in
this way enhancing the nature of items. The items are accessible at serious rates. Arising
economies like China, India and other non-industrial nations climb the worldwide worth chain
by expanding esteem expansion to their items.

Innovation move: It means the sharing of information, abilities, and advancements by

associations to take special care of customers' necessities. New and imaginative items in this
manner arrive at customers. Global exchange works with the progression of innovation starting
with one country then onto the next. Makers and makers put resources into hardware and most
recent programming and innovation from different nations to meet rivalry.

A chance for extension: Through global exchange, business associations get a section into
new business sectors; there by planning and tying down a stage to extend business exercises.
Ascend in deals and benefits: Global exchange gives business associations stretched out
potential to sell the current items. The admittance to new business sectors is in this way a stage
for expansion in benefits.

Broadened deals capability of existing items: Worldwide exchange gives an amazing chance
to expand the business capability of existing items. In the event that an item isn't utilized in a
country, an association can create request by advancing and selling items in another country.

Chance to piece of the pie at the worldwide level: Business associations can catch an offer
in the worldwide market through global exchange. Associations can make their presence felt
worldwide with the assistance of global exchange.

Diminish reliance on the current market: In instances of immersion in the homegrown

market, global exchange permits associations to go into new business sectors. Hence,
associations can broaden and diminish the gamble figure terms of business sectors accessible
to carry on with work.

Protection from market changes: Global exchange works with associations to do business
exercises different business sectors when one market vacillates. For instance, during change,
an association can purchase a product at a low cost from one market and can sell it in the other.

Financial experts consider worldwide exchange gainful for the world economy as its
advantages dwarf its inconveniences. There is improvement in the general economy of all
nations of the world. A nation benefits in financial terms from global exchange as it sells its
overflow products in the worldwide market in the wake of satisfying the requirements of
homegrown customers. These exchange exercises give nations more capital and thus help their
economy. As far as worldwide exchange, an ascent in sends out is viewed as great and gainful
while an expansion in imports isn't viewed as great as it lessens unfamiliar trade. It is a
provoking errand for the policymakers to keep a harmony among limitations and streamlined
commerce.

Presently, the situation has changed as an open economy and unwinding in exchange
obstructions has prompted free progression of capital, merchandise, administrations, HR and
advancements across countries. Different financial matters have coordinated into a worldwide
economy through the trading of exchange and unfamiliar direct speculations (which are
ventures made to gain long haul interest in an association at a worldwide level). This cross-line
joining and interconnection can be social, financial, social or political. This incorporation is
credited to the development of the idea globalization.

2. In your opinion do you think we should permit FDI and FII to invest in our country?

Answer: The world economy is globalizing at a speeding up pace as nations recently shut to
unfamiliar organizations have opened up their business sectors. Geographic distance is
contracting a direct result of the Web, as the aggressive organizations go for the gold. This is
conceivable in view of blasting worldwide business. Global business is fundamentally worried
about the issues that are connected with worldwide organizations and legislatures' cross line
exchanges. Global business includes numerous nations to fulfill the goals of each and every
person as well as the associations. Worldwide business the board is a course of accomplishing
the worldwide targets of a firm by really dealing with the human, monetary, scholarly and
actual assets.

FDI and FII

As per the Association for Financial Collaboration and Improvement (OECD), FDI just
signifies "A financial backer situated in one nation gains a resource in one more country with
the plan to deal with that resource." FDI is a device to go into unfamiliar business sectors, and
furthermore the main wellspring of capital for countries, particularly non-industrial countries.
Market size, development pace of the market, trade rates, political soundness, level of
defilement, accessibility of human resources, financial foundation, charges, impetuses,
monetary opportunity and receptiveness are the significant determinants of FDI for a country.

For the most part, in FDI, creation offices in the unfamiliar business sectors must be fabricated.
Per IMF rules, FDI is conceivable just when an unfamiliar financial backer secures 10% or
greater value and casting a ballot rights in an organization. FDI is a drawn out venture and has
been ordered into various sorts. FDI permits organizations to create, sell, and contend locally
in key business sectors. Instances of FDI flourish: Honda constructed a $550 million gathering
plant in Greensburg, Indiana; Hyundai put $1 billion in a plant in Montgomery, Alabama;
IKEA has spent almost $2 billion to open stores in Russia; and South Korea's LG Gadgets
bought a 58 percent stake in Peak Hardware. Each of these addresses FDI.

An unfamiliar institutional financial backer (FII) is a financial backer or speculation store

putting resources into a country beyond the one in which it is enlisted or settled. The term
unfamiliar institutional financial backer is likely most ordinarily utilized in India, where it
alludes to outside elements putting resources into the country's monetary business sectors. A
portion of the nations with the most elevated volume of unfamiliar institutional speculations
are those with creating economies, which by and large furnish financial backers with higher
development potential than mature economies. This is one explanation FIIs are usually found
in India, which has a high-development economy and appealing individual organizations to put
resources into. All FIIs in India should enroll with the Protections and Trade Leading group of
India (SEBI) to take part on the lookout.

Should we permit FDI and FII to invest in our country

I have mentioned about FDI and FII in above paragraphs and to decide if these should be
permitted to invest in India, we should check and analyse the benefits of them and accordingly
decide.

 Creation of jobs is the most obvious advantage of FDI. It is also one of the most
important reasons why a nation, especially a developing one, looks to attract FDI.
Increased FDI boosts the manufacturing as well as the services sector. This in turn
creates jobs, and helps reduce unemployment among the educated youth - as well as
skilled and unskilled labour - in the country. Increased employment translates to
increased incomes, and equips the population with enhanced buying power. This boosts
the economy of the country.
 In developing country, FDI could be beneficial in develop backward areas. Recipient
businesses get access to latest financing tools, technologies and operational practices
from across the world. Over time, the introduction of newer, enhanced technologies and
 processes results in their diffusion into the local economy, resulting in enhanced
efficiency and effectiveness of the industry.
 Not all goods produced through FDI are meant for domestic consumption. Many of
these products have global markets. The creation of 100% Export Oriented Units and
Economic Zones have further assisted FDI investors in boosting their exports from
other countries.
 FDI is a source of external capital and higher revenues for a country. When factories
are constructed, at least some local labour, materials and equipment are utilised. Once
the construction is complete, the factory will employ some local employees and further
use local materials and services. The people who are employed by such factories thus
have more money to spend. This creates more jobs.
 FII investment will boost the capital flow of a country which is beneficial in many ways
and big benefit of FII.
 These investors prefer stock to debt in general. As a result, they will be able to sustain
and even improve the capital structures of the enterprises in which they participate.
 As they invest in large numbers, there is a positive impact on the economy and market
of a country. Moreover, they have a favourable impact on financial market competition.
FII contributes to capital market financial innovation.
 Asset managers and analysts professionally handle these entities. They generally boost
the country's capital markets.
 When FIIs acquire stocks and assets, the market becomes bullish and moves upward.
When people remove their funds from the markets, the opposite may occur. As a result,
they wield significant power over the market.

Based on above conversation, one might say that, as FDI and FII offer part of advantages, they
ought to be allowed to put resources into our country. As our nation is in creating stage, these
sorts of ventures truly help to specific degree and I'm supportive of the equivalent.

3. Read the following case study carefully and then answer the questions that follow:
Your firm manufactures EV bicycles in India and wishes to market them globally. In
spite of competition, you see that South Africa has a huge potential and plan to expand
your retail operations in South Africa.
a. Explain your market entry strategy to launch the EV bicycles in South Africa.
b. Explain major global pricing policies. Which of these pricing policies would you
consider while launching the EV bicycles in South Africa?

Answer: a) Once manufacturer decides to go international, he needs to decide about the market
entry strategy to be adopted. Entry modes may vary from company to company or even for a
single company depending upon a variety of factors as discussed below:
 Size of the company – Generally, larger companies have large financial resources and
manpower skill to handle international operations in a competitively better manner.
 Market potential – In markets with considerable size and growth opportunities, a
company may enter by way of putting more resources and investment.
 Company objectives – Depending upon the company’s objectives in the target market,
the firm may decide upon the entry mode.
 Commitment of the company – The internationalising firm may decide upon its
commitment to the market and choose the most appropriate entry mode.
 Control – In case the internationalising company is willing to exercise greater control
over its international operations, it may choose the investment entry mode.
  Willingness to take risks – Depending upon the company’s willingness to take risks
in the market, a firm may decide upon the entry mode as exports involve minimum risks
while wholly owned subsidiaries involve the greatest level of risks.

I would recommend organization to go for trading choice. Direct commodities improve the
brand value as the item enters unfamiliar business sectors and bought by outsiders at various
business sectors. In direct commodities, dealer exporter or producer exporter manages the
unfamiliar merchant. Business firms which are new to unfamiliar exchange need to foster
certainty while managing unfamiliar purchasers whom they have not seen and not made any
private conversation with. These unfamiliar purchasers are called non-up close and personal
customers and on occasion present huge gamble as far as product esteem acknowledgment.
With the coming of data innovation and its proceeded with advancement there are a few simple
and practical techniques for entering worldwide business sectors.

Under permitting, contract assembling and joint endeavor, organization requirements to work
with other organization which isn't practical when you are exclusively ready to oversee in new
worldwide areas. Holding hands with other player and offer all your business privileged
insights, business activities and different details isn't astute. Aside from this, it isn't ideal to
gain another organization and begin your activities at first and playing out this exchange with
currently settled company is truly difficult. In this way, according to my view, organization
ought to begin sending out to India at first and when it gets great customer base, it can make
its base in India and deal with every one of the tasks freely so trading would be the great choice.

Aside from this, entirely claimed auxiliary choice might be thought of. To deal with its abroad
tasks, an organization might extend via possessing the whole situation, known as a completely
claimed auxiliary. The FDI laws of the nation should allow 100 percent interest in the specific
business wherein the organization has a premium to venture.

b) Evaluating choices
Evaluating the item is an essential step where the worldwide advertiser must be incredibly
mindful so as to guarantee that he can boost his benefits by taking care of the necessities and
yearnings of the customer. One more significant component as far as estimating an item is the
effect of evaluating on the company's all out income from commodities and in general benefit.
Development with benefit is a mantra for everybody in the space of business. Development
can be considered provided that there is benefit. Further, benefit can be procured if and
provided that the advertiser is cautious in considering the different variables that go into value
assurance and afterward shows up at the right cost. Right cost from the advertiser can be
guaranteed just while evaluating is viewed as one of the significant determinants of
achievement. Right cost need not be guaranteed to suggest a low cost.

Worldwide estimating strategies

Ethnocentric estimating: One of the worldwide evaluating arrangements is ethnocentric
valuing which is called expansion valuing also. Under this evaluating, organizations set the
value fixed of the multitude of units in every one of the areas it is selling its items. In such
cases, the shipper should assimilate cargo and import obligations. The expansion approach
enjoys the benefit of outrageous effortlessness since it doesn't need data on serious or economic
situations for execution. This approach doesn't survey the economic situations of each market
so expanding the general profits is truly troublesome.
Polycentric estimating: Another worldwide evaluating strategy is transformation or
polycentric valuing. Organizations following these strategies permit auxiliary or partner
administrators or autonomous wholesalers to lay out anything that cost they feel is most
suitable in their market climate. There is no prerequisite that costs be facilitated starting with
one country then onto the next.

Geocentric estimating: This valuing strategy is totally unique in relation to other two so under
this arrangement, same cost isn't applied regardless of the area and organizations don't for a
moment even permit different chiefs to fix the cost according to their comprehension. This
valuing depends on the acknowledgment that one of a kind neighborhood market variables
ought to be perceived while showing up at estimating choices. These elements incorporate
nearby expenses, pay levels, rivalry, and the neighborhood showcasing methodology. Cost
should likewise be coordinated with different components of the advertising program.

Optimal evaluating strategy in the given case

I have referenced over the worldwide estimating approaches and according to my view,
organization ought to follow polycentric valuing to sell EV bikes in south Africa. As the nation
is unique, there would be many changes as far as market, business climate, political
circumstances, work accessibility, request of the item, import obligation and so forth so
subsequent to thinking about this large number of elements, evaluating ought to be chosen.