Pir Mehr Ali Shah

Arid Agriculture University, Rawalpindi

Office of the controller of Examinations
Mid Exam / FALL 2020 (Paper Duration 24 hours)
To be filled by Teacher

Course No: MGT-574 Course Title: International Business

Total Marks: 18 Date of Exam: 03/12/2020
Degree: BS (Commerce) Semester: 7 th Semester
Marks
Q.No. 1 2 3 4 5 6 7 8 9 10 Obtained/
Total Marks
Marks
Obtaine
d
Total Marks in Words:
Name of the teacher: Sir Kaleem Ullah.
Who taught the course: Signature of teacher / Examiner:

To be filled by Student

Registration No: 17-ARID-4368 Name: SHAHMIR HASHMI

Note: Answer the following questions. Answer should be half page of MS word document
and it should be typed. Each question carries 6 marks.

Q.No.1: Take a local company of your own choice and passes it through different stages of
Internationalization Process. Which level of internationalization you will like the most and
why? Give logical reasons for your choice.
Answer: Company name: MIA group of companies.
Stage 1: In the first stage of the internationalization process, the firm gets the trade mark,
license or an access to the foreign company. In this all stage, company needs to pay the fee
which is setup according the rules and regulations. This process allows the firm to expand in
the international market. Initial expanding of the company into international market is
possible with this step.
Stage 2:The second step is about the understanding of foreign market. When a local firm
enters into the international market, it has no idea about the rules and traditions of that
market. Owners look for the trend of the market and get an idea about where their
company can survive or where it can take place. Local agent or the distributor gets enter to
the foreign market and gets an idea about the trend.
Stage 3: In third stage of the internationalization process, company starts selling it’s
products through it’s own sales representative. They have taken an idea by the previous
stages about the international market and the firm exports it’s product into international
market by it’s own seller or distributor.
Stage 4: As the MIA group of companies is providing the services for Air conditioners. In this
stage, the company sends it’s product into the foreign market with in local packing or
assembly. This makes the ones product differ from the others products. the presentation
must be good and different from others so that others can get attract towards our product.
Stage 5: this is the last stage in which the official investment is made in the international
market. The setup of a local firm is launched into the international market and the local firm
becomes an international firm.
My favorite level of internationalization:
Stage I like the most is the stage 4 in which a product is launched into the foreign market
with the local packing. This makes our product differ from the others and our product starts
selling into the foreign market. It is the packing which makes our product differs from the
others in the starts. It is a saying that “seeing is believing” when the product is packed and
presented decently, it would get more popular in the foreign market as well.
Q.No.2: (In 2000, a corporation reached the first international market in the United
States through the creation of a wholly owned subsidiary (WOS). This transaction for
the establishment of WOS in the US is reported as the first foreign market venture of
the business. Subsequently, the same company won the contract in the US market
in the year 2003. This contract may be performed by the Pakistan-based
headquarters (or parent company) or the US-based WOS.)
Answer the following question after reading the text above,

Should the subsequent winning of the foreign market project where wholly Owned
Subsidiary was already developed by company be viewed as a subsequent
internationalization?

Answer: In the case given above, we can see that there is the three years journey from
2000-2002. We can see that there was a company made in 2002 in the existing market of
US. We can see that in the case given above, it is mentioned that the company made in the
US was the parent company. Parent company means that the company was based in US but
it was being controlling by the Pakistan as it’s head quarter was in the Pakistan. All the
operations and dealings of that company was doing in the Pakistan. All the employees was
outside the company but they were paying off by the Pakistan.
The company gets the project in the US which can be done by the both of the companies i.e.
new developed company in the US that was the parent company and the project was also
be done by the wholly owned subsidiary (WOS). We can call it as the internationalization.
We can call it as the internationalization in a sense that all the operations were taking place
outside the company. Although the parent company was in the Pakistan, but they were
performing all of there operations outside the country. So the parent company based in the
Pakistan was also can be called as the international company.
Yes, the subsequent winning of the foreign market project where wholly owned subsidiary
was already developed by the company be viewed as a subsequent internationalization. As,
the word defines all the actions or process of making something international. A firm called
as the international firm when it’s operations are taking place outside the country. So, the
company and the parent company in Pakistan was taking and winning the projects at US.
This all was doing with the help of wholly owned subsidiary (WOS). Wholly owned subsidiary
companies are those companies which are performing the same work and owned by the
same parent company. So, we can say that in this case, WOS was growing their business
internationally.
Q.No.3: The trend has been a shift towards globalization and integration in the area of
international business. Study, however, has shown that most government policies have
recently been of a protectionist sort. How do you see the IB market and the growth of
trade in the near future? Will it move towards further globalization or a move in the
opposite direction?

Answer: Globalization: Globalization is a term or a process which is used in the business or

in the other firms to develop international influence or taking the business on the
international scale. It is the very wide term which operates or brings a business on the
international level. In other words, we can say that the globalization is the worldwide scale.
Globalization do not only involves the exchange of goods and services, but it also involves
the exchange of ideas as well.
Globalization is further divided into three types:
1. Economic globalization
2. Cultural globalization
3. Political globalization
In modern era, the trend of the business is changing. It is moving towards the globalization
and integration. There are many new developed rules and regulations by the economic
integration. These rules and regulations are taking the modern era towards the globalization
and integration. This enables the different countries to trade on a same platform. This also
enables different countries to enhance the trade among them. With the help of this all,
cooperation takes place among different countries.
On the other hand, if we look for the government policies among the trades, we can see
that the government has increased the tax rates and custom duties. The imposed the heavy
budgetary pressure. But is giving the favor to the globalization and other business taking
place outside the country. Government is making the business out side the country more
secure because it may create the co operations of both countries and enables the countries
to trade mutually in better manner. This is also be helpful in generating the more profit for
the company and enhances once countries business in the positive terms.
In according to my view, the business in the globalization will be the trend in upcoming
future. The international market business will also be helpful for all the countries in a sense
that it will develop the co operation among different countries and give them more return
as compare to the business in the local country. International business will definitely move
towards the globalization as it will help them to work mutually and understanding all the
terms in better way. In this, every group has experts and they focus upon their efforts on the
goods and services being given by them. They make better and better product to get the
competitive advantage. This enables them to make the better and better product to have a
competitive edge.