1. What do you understand by the term ‘political risk’? In your opinion, is it country specific or firm specific or both? Elaborate giving examples.
2. Explain the significance of Letter of Credit in international marketing. Briefly discuss the operation of a Letter of Credit.
3. Explain the various combinations of product/communication strategies available to global marketers.
4. With the help of examples, explain how a marketing manager can use “country attractiveness/competitive strengths” matrix to define the direction of growth of the organization.
5. Study the case given below and answer the questions given at the end.
ABC Metals Ltd.
ABC Metals Ltd. was formed some twenty years ago by a metal-processing
manufacturer based in Mumbai. The company manufactures bathroom fixtures
and fittings, principally for plumbing applications (including taps,
joints and shower fittings). A wide range of end users exist, including
domestic householders and industrial/institutional buyers.
The company exports its products to a number of countries in Europe
and America. In the last year it achieved market share of 6 per cent
in Germany, 10 per cent in France and 3 per cent in Belgium. In addition,
5 per cent of total production was shipped to a major wholesaler in
Miami, U.S.A.
The wide range of fittings varies in size, style, colour, metal and
plastic finishings to occupy bottom and top end market positions.
A feasibility study has recently been completed to assess the potential
of the UK market. Encouraging results have now stimulated the company
to pursue actively the UK market with a target date for entry in ten
months’ time.
Question:
(a) Advise the company of the options open to achieve UK market
entry.
(b) Select and justify a method of market entry and give a brief
account of the marketing mix implications.