9. (a) Discuss the origin, objectives and functions of S.No. 1747 P12MBS1EA1 IMP. Or (For candidates admitted from 2012-2013 onwards) (&) Compare and contrast BC and SAARC as M.B.A. DEGREE EXAMINATION, NOVEMBER 2013, facilitators of international business among its members. What hampers SAARC. in International Businese Super Specialisation - Elective becoming Fall edged entity in effectively promoting business? INTERNATIONAL TRADE ‘Time : Three hours Maximum : 76 marks SECTION A PART-1 ‘Only one question ie case study compulsory. (x 10-10) 1. Mahindra and Mahindra (M&M) is a major player in the tractor and certain segments of the ‘automobiles market in India. After an impressive growth for a few years, the tractor market in India ‘stagnating during 1998-1999 to 2000-2001. M&M. hhas been selling its tractors and utility vehicles in Foreign markets including USA, Some of the ‘components for its products have been sourced from abroad. M&M has a 100 per cent subsidiary in USA, Mahindra USA, with a strong network of 100 dealer, Mahidra had a five per cent market share in the US market in the 20-30 horse power (HP) range. Asa part of the strategy aimed at building a global supply chain. Mahindra USA has signed a memorandum of understanding iKorean tractor major Tong Yang, a part of the $2 billion. Tong Yang Moolsam group, according to which Mahindra will source high horse power (25-40 HP) and sell them around the world under the M&M brand name, To start with, the premium range of tractors will be sold in the US. M&M's current tractor range is more utility- oriented and lacks the aesthetic appeal that Tong Yang's tractors have, a must for a strong presence in the US market. (a) How does the strategic alliance with Tong Yang benefit M&M? (b) What are the advantages and limitations of global soureing? (©) How will the Foreign market expansion help M&M? PART —II Answer ALL questions. (8x5 = 15) Do you advocate free trade policy now? Why? What are the factors which affect terms of trade? What is the direct impact of global meltdown ‘everywhere? @) ) @ © @ © @) ©) SECTION B — (6 x 10 = 50) Answer ALL questions, What are the factors influencing growth of international in transition economics? Or Explain the reasons for rising trends in international Trade. Briefly explain the methods of foreign direct investments in India, Or Would China become a threat to India? If so, explain the strategies for Indian business to ‘overcome. Chinese threat. Explain the export promotion measures introduced by Government of India. or Bring out the organisational structure of MNCs. Explain the different methods of payments in international trade, or What do you mean by letters of credit? Explain the different types of Letters of Credit.