India's Foreign Trade

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NMIMS

Master of Business Administration

India's Foreign Trade

Q1. Explain how poor bilateral relationship between two countries affect bilateral trade between the countries, take any one example from recent incidents between India and other country.

Answer. Foreign Trade of a country constitutes exports and imports. Exports are vital to a developing economy as the capacity to import is limited by the capacity to export because finally imports have to be paid for by exports. The growing industrialization of a developing country necessitates increasing imports because of high income elasticity of demand for imports and the

Q2. How does Balance of Payment (BoP) is crucial in International Trade and Political relationship between the countries, explain the concept with example of India and China or India and USA.

Answer. Balance of payments (BOP) is one of the oldest and the most important statistical statements for any country, especially the more open economies. The BOP is ‘a systematic record of all economic transactions between the residents of a given country and of the residents of the rest of the world in an accounting period (viz. a year).’ The system of BOP accounting, some of the concepts and terminologies used in the BOP expression and the interpretation of the BOP categories are of utmost importance to any student of international economics. Despite efforts by international organizations to secure uniformity of classification and

Q3. Well established Indian cosmetics Manufacturing and Marketing Company decided to expand their business boundaries through International business.

a. If you being head of International business of company how do you plan to make your entry in to new market overseas, explain with stepwise market entry plan.

b. What are the probable entry barriers you may face any new overseas market, explain how you will overcome those problems.

Answer. a) Entry modes may vary from company to company or even for a single company depending upon a variety of factors as discussed below:-

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