INTERNATIONAL BUSINESS

UNIT-2

Q.1. Environmental Analysis and Environmental Scanning.

Ans- The analysis of the global environment of a company is called global environmental
analysis. This analysis is part of a company's analysis-system, which also comprises various
other analyses, like the industry analysis, the market analysis and the analyses of companies,
clients and competitors. The global environmental analysis describes the macro
environment of a company.
After the segmentation, the analysis consists of four further steps:
Environmental Analysis:
1. Environmental Scanning
2. Environmental Monitoring
3. Environmental Forecasting
4. Environmental Assessment

1. Environmental Scanning-
The first step is called scanning. Through environmental scanning, every segment is analyzed
to find trend indicators. Thus, after having examined the segment, indicators for its
development are defined. According to Fahey and Narayanan, scanning reveals 'actual or
imminent change because it explicitly focuses on areas that the organisation may have
previously neglected'. Scanning is also used to detect weak signals in the environment, before
these have conflated into a recognizable pattern, which might affect the organization's
competitive environment.
Scanning can include every material published in the media such as television, newspapers
and periodicals. This method of scanning is called media-scanning. Product- scanning
includes scanning of products which announce re-emerging consumer behaviour. Looking for
global trends on the internet can be defined as online-scanning.

Modes of Scanning-
Four modes of scanning can be distinguished. Francis Joseph Aguilar (1967) differentiates
between undirected viewing, conditioned viewing, informal search and formal search.
'Undirected viewing' means reading a variety of publications for no specific purpose with the
possible exception of exploration. This mode is the most cost- efficient one but it also offers
the most benefits. There are a lot of varied sources and information which means that the
potential data are unlimited. Data are imprecise and vague and there are no guidelines which
determine where the search should be focused.
• Applying 'conditioned viewing' the viewer pays attention to the particular kinds of data and
assesses their significance for the organization. The field of information is more or less
clearly identified.
'Informal searching can be defined as actively seeking specific Information in a relatively
unstructured way,
The contrast of informal searching is called 'formal searching'. This proactive mode of
scanning contains methodologies for obtaining information for specific purposes.
2. Environmental Monitoring

Environmental scanning is only one component of global environmental analysis. After

having identified critical trends and potential events they have to be monitored. The next step
in global environmental analysis is called environmental monitoring. It can be defined as 'the
process of repetitive observing for defined purposes, of one or more elements or indicators of
the environment according to pre-arranged schedules in space and time, and using
comparable methodologies for environmental sensing and data collection'. Through
environmental monitoring, data about environmental developments are recorded, followed
and interpreted. Out of this, historical development changes that are important for the
company can be recognized and evaluated. Additionally, the relevance and the reliability of
the data sources are tested. Furthermore it is checked, where prognoses are required.

3. Environmental Forecasting
The direction, intensity and speed of environmental trends are explored through
environmental forecasting. Especially the search for possible threats is of importance. A
prognosis of trends is necessary to get a picture of the future. This is done by adequate
methods, like strategic foresight or scenario analysis. Several other methods of forecasting
are the following: guessing, rule of thumb, expert judgement, extrapolation, leading
indicators, surveys, time-series models and econometric systems.

4. Environmental Assessment
In the last step of the global environmental analysis, the results of the previous three steps
(Scanning, Monitoring, Forecasting) are assessed. The discovered environmental trends are
reviewed to estimate the probability of their occurrence. Furthermore, they need to be
analyzed to evaluate whether they represent a chance or a risk for the company. The
dimension of the chances or risks is also of importance. Moreover, a reaction strategy to the
occurring risks or chances needs to be defined. This is done with the help of the Issue-Impact-
Matrix, an adequate instrument to evaluate and prioritize trends. The forecasted
environmental factors are here classified with respect to their probability of occurrence and
their impact on the company. According to their classification, they demonstrate a high,
medium or low priority for the company.

Q.2. Different parameters for country risk analysis.

Ans- Country risk analysis identifies imbalances that increase the risks in a cross-border
investments. Country risk analysis represents the potentially adverse impact of a country's
environment on the multinational corporation's cash flows and is the probability of loss due to
exposure to the political, economic, and social upheavals in a foreign country. All business
dealings involve risks. When business transactions occur across international borders, they
bring additional risks compared to those in domestic transactions. These additional risks are
called country risks. The country risk analysis monitors the potential for these risks to
decrease the expected return of a cross-border investment. For example, a multinational
enterprise (MNE) that sets up a plant in a foreign country faces different risks compared to
bank lending to a foreign government.
Analysts have categorized country risk into following groups:

• Economic risk: This type of risk is the important change in the economic structure that
produces a change in the expected return of an investment. Risk arises from the negative
changes in fundamental economic policy goals (fiscal, monetary, international, or wealth
distribution or creation).

Transfer risk: Transfer risk arises from a decision by a foreign government to restrict capital
movements. It is analyzed as a function of a country's ability to earn foreign currency.
Therefore, it implies that effort in earning foreign currency increases the possibility of capital
controls.

• Exchange risk: This risk occurs due to an unfavorable movement in the exchange rate.
Exchange risk can be defined as a form of risk that arises from the change in price of one
currency against another. Whenever investors or companies have assets or business
operations across national borders, they face currency risk if their positions are not hedged.

 Location risk: This type of risk is also referred to as neighborhood risk. It includes effects
caused by problems in a region or in countries with similar characteristics. Location risk
includes effects caused by troubles in a region, in trading partner of a country, or in
countries with similar perceived characteristics,

 Sovereign risk: This risk is based on a government's inability to meet its loan obligations.
Sovereign risk is closely linked to transfer risk in which a government may run out of
foreign exchange due to adverse developments in its balance of payments. It also relates
to political risk in which a government may decide not to honor its commitments for
political reasons.

 Political risk: This is the risk of loss that is caused due to change in the political structure
or in the politics of country where the investment is made. For example, tax laws,
expropriation of assets, tariffs, or restriction in repatriation of profits, war, corruption and
bureaucracy also contribute to the element of political risk.

Q.3. PESTEL Analysis.

Ans- Read from Kinjal mam PDF unit-2
UNIT-7

Q.1. Types of Organizational Structure.

Ans- Organizational structure refers to the framework that outlines how various activities are
coordinated and controlled within an organization. There are several types of organizational
structures, each with its own characteristics, advantages, and disadvantages. Here are some
common types:
1. Functional Structure:
 Organizes employees based on specialized functions or departments such as
marketing, finance, operations, and human resources.
 Provides clear lines of authority and specialization but may lead to silos and
lack of coordination across departments.
2. Divisional Structure:
 Organizes employees into self-contained divisions based on products, services,
geographic regions, or customer groups.
 Allows for better focus on specific products or markets but may duplicate
functions across divisions.
3. Matrix Structure:
 Combines functional and divisional structures, creating a dual reporting system
where employees report to both functional managers and project or product
managers.
 Facilitates flexibility and resource sharing but can lead to power struggles and
confusion over roles and responsibilities.
4. Flat Structure:
 Has few or no levels of middle management, with a broad span of control and a
focus on decentralization and employee empowerment.
 Promotes quick decision-making and open communication but may lack
hierarchy and clear career progression.
5. Hierarchical Structure:
 Follows a traditional pyramid-shaped hierarchy with multiple levels of
management and clear lines of authority and control.
 Provides stability and clear career paths but may hinder communication and
innovation.
6. Network Structure:
 Relies on external partnerships, alliances, and outsourcing to accomplish tasks,
rather than traditional internal departments.
 Offers flexibility and access to specialized expertise but requires strong
coordination and relationship management.
7. Team-Based Structure:
 Organizes employees into cross-functional teams that work together on specific
projects or tasks.
 Encourages collaboration and innovation but may create challenges in aligning
team goals with overall organizational objectives.
8. Holacracy:
  A decentralized organizational structure where authority and decision-making
are distributed among self-managed teams or circles.
 Emphasizes autonomy, transparency, and continuous improvement but can be
challenging to implement and sustain.
9. Virtual Structure:
 Operates without a physical office space, relying on technology to connect
remote workers and coordinate activities.
 Offers flexibility and cost savings but requires effective communication and
technology infrastructure.
10.Hybrid Structure:
 Combines elements of different organizational structures to suit the specific
needs and goals of the organization.
 Provides customization and flexibility but may increase complexity and require
careful management.
Each type of organizational structure has its own implications for communication, decision-
making, accountability, and overall organizational effectiveness. The choice of structure
depends on factors such as the organization's size, industry, culture, and strategic objectives.

Q.2. Difference between Supply Chain management and Supply chain.

Ans- "Supply chain management" and "supply chain" are related concepts, but they refer to
different aspects within the realm of logistics and operations. Here's a breakdown of the
difference between the two:
1. Supply Chain:
 The supply chain refers to the network of organizations, people, activities,
information, and resources involved in the production and distribution of goods or
services from the supplier to the end customer.
 It encompasses all the steps and processes involved in transforming raw materials
into finished products and delivering them to the end consumer.
 The supply chain includes various entities such as suppliers, manufacturers,
wholesalers, retailers, distributors, and transportation providers.
 It involves the flow of materials, information, and finances across multiple stages,
from sourcing raw materials to delivering the final product to the customer.
2. Supply Chain Management (SCM):
 Supply chain management is the strategic coordination and integration of all the
activities and processes within the supply chain to optimize the flow of goods and
services, minimize costs, and meet customer demands efficiently.
 SCM involves planning, organizing, controlling, and monitoring all aspects of the
supply chain, including sourcing, procurement, production, inventory management,
logistics, distribution, and customer service.
 It focuses on improving collaboration and communication among various
stakeholders in the supply chain to enhance efficiency, responsiveness, and
competitiveness.
 SCM encompasses a range of activities such as demand forecasting, inventory
optimization, supplier relationship management, logistics management, and
performance measurement.
 The goal of supply chain management is to create value for customers while
achieving a competitive advantage for the organization through effective
 management of the entire supply chain process.
In summary, the supply chain is the network of interconnected entities involved in the
production and distribution of goods or services, while supply chain management is the
strategic coordination and optimization of these activities to achieve operational excellence
and meet customer needs effectively.

Q.3. Types of Supply Chain models.

Ans- Types of Supply Chain Models
Supply chain management does not look the same for all companies. Each business has its
own goals, constraints, and strengths that shape what its SCM process looks like. In general,
there are often six different primary models a company can adopt to guide its supply chain
management processes.
 Continuous Flow Model: One of the more traditional supply chain methods, this model
is often best for mature industries. The continuous flow model relies on a manufacturer
producing the same good over and over and expecting customer demand will little
variation.
 Agile Model: This model is best for companies with unpredictable demand or customer-
order products. This model prioritizes flexibility, as a company may have a specific need
at any given moment and must be prepared to pivot accordingly.
 Fast Model: This model emphasizes the quick turnover of a product with a short life
cycle. Using a fast chain model, a company strives to capitalize on a trend, quickly
produce goods, and ensure the product is fully sold before the trend ends.
 Flexible Model : The flexible model works best for companies impacted by seasonality.
Some companies may have much higher demand requirements during peak season and
low volume requirements in others. A flexible model of supply chain management
makes sure production can easily be ramped up or wound down.
 Efficient Model: For companies competing in industries with very tight profit margins, a
company may strive to get an advantage by making their supply chain management
process the most efficient. This includes utilizing equipment and machinery in the most
ideal ways in addition to managing inventory and processing orders most efficiently.
 Custom Model: If any model above doesn't suit a company's needs, it can always turn
towards a custom model. This is often the case for highly specialized industries with
high technical requirements such as an automobile manufacturer.
UNIT-5

Q.1. Advantages and disadvantages of FDI & FII.

Ans- Advantages of Foreign Direct Investment (FDI):
1. Long-term Investment: FDI involves establishing a physical presence, such as
factories, offices, or subsidiaries, in the host country, indicating a long-term
commitment to the market.
2. Technology Transfer: FDI often brings advanced technology, managerial expertise,
and best practices to the host country, leading to improvements in productivity,
innovation, and competitiveness.
3. Employment Generation: FDI creates job opportunities in the host country through
direct employment in new businesses and indirect employment in related industries
and services.
4. Infrastructure Development: FDI projects may contribute to the development of
infrastructure such as roads, ports, utilities, and telecommunications, benefiting the
overall economy.
5. Export Promotion: FDI can facilitate increased exports from the host country by
leveraging global networks, marketing channels, and distribution channels of
multinational corporations.
Disadvantages of Foreign Direct Investment (FDI):
1. Dependency: Heavy reliance on FDI may make the host country dependent on foreign
investors, leading to vulnerabilities in economic policies and fluctuations in investment
flows.
2. Risk of Exploitation: FDI may sometimes lead to exploitation of natural resources,
labor, or markets in the host country, if not properly regulated.
3. Profit Repatriation: Multinational corporations (MNCs) often repatriate profits back
to their home countries, reducing the reinvestment of earnings in the host country's
economy.
4. Environmental Concerns: Some FDI projects may raise environmental concerns,
such as pollution, deforestation, or depletion of natural resources, if not conducted
responsibly.
5. Loss of Sovereignty: FDI involving significant ownership or control by foreign
entities may raise concerns about loss of sovereignty and influence over strategic
industries or assets.
Advantages of Foreign Institutional Investment (FII):
1. Liquidity Injection: FIIs provide a source of liquidity to the host country's financial
markets by investing in stocks, bonds, and other securities, which can stabilize markets
and increase trading volumes.
2. Portfolio Diversification: FIIs offer domestic investors opportunities to diversify their
investment portfolios by accessing foreign markets and assets, reducing overall
investment risk.
 3. Capital Inflows: FII inflows can boost capital formation, stimulate economic growth,
and support investment in infrastructure, technology, and other productive sectors.
4. Market Efficiency: FIIs bring expertise, research, and market knowledge to the host
country's financial markets, contributing to greater market efficiency, transparency,
and liquidity.
5. Exchange Rate Stability: FII inflows can influence exchange rates and contribute to
currency stability by increasing demand for the host country's currency in international
markets.
Disadvantages of Foreign Institutional Investment (FII):
1. Volatility: FIIs can introduce volatility and speculative behavior into financial
markets, leading to price fluctuations, market bubbles, and systemic risks, especially in
emerging markets.
2. Herding Behavior: FIIs may exhibit herding behavior, where large flows of capital
follow trends or market sentiment, amplifying market movements and exacerbating
market instability.
3. Capital Flight: FIIs can quickly withdraw funds from the host country's financial
markets during times of uncertainty or economic downturns, leading to capital flight
and currency depreciation.
4. Regulatory Challenges: Managing and regulating FIIs require effective supervision,
monitoring, and enforcement of regulatory frameworks to prevent market
manipulation, insider trading, and other abuses.
5. Crowding Out: Excessive reliance on FII inflows may crowd out domestic
investment, diverting resources away from productive sectors of the economy and
increasing vulnerability to external shocks.

Q.2 Types of ADR & GDR.

Ans- American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) are
financial instruments that represent ownership of shares in a foreign
company. They are used to facilitate the trading of foreign stocks in international markets.
Here are the main types of ADRs and GDRs:
Types of ADRs:
1) Sponsored ADRs:
Issued by a depositary bank with the involvement and cooperation of the foreign company.
These are the most common type of ADR and come in three levels:
 Level I: Traded over-the-counter and not listed on a major exchange.
 Level II: These ADRs are listed on a U.S. stock exchange, such as the NYSE or
NASDAQ. Level II ADRs must comply with the SEC reporting requirements,
providing more transparency to investors.
 Level III: Level III ADRs are the most advanced and involve a public offering of
ADRs in the U.S. This type requires the highest level of
compliance with SEC regulations and provides the most exposure to U.S. investors.
2) Unsponsored ADRs:
These ADRs are established without the cooperation of the foreign company. A third-party
institution, often a U.S. bank, creates unsponsored ADRs to represent shares of a foreign
company.
Types of GDRs:
1. Sponsored GDRs:
Similar to sponsored ADRs, these GDRs are issued with the cooperation of the foreign
company. The issuing bank works in conjunction with the
company to create and issue GDRs.

2. Unsponsored GDRs:
These GDRs are issued without the direct involvement or cooperation of the foreign
company. Like unsponsored ADRs, third-party institutions
create unsponsored GDRs to represent shares of a foreign company.

3. Rule 144A GDRs:

Rule 144A is a regulation that allows the sale of unregistered securities to qualified
institutional buyers without the need for SEC registration. Rule 144A GDRs are targeted at
institutional investors and are not freely tradable to the general public in the United States.
UNIT-6

Q.1. India’s Commitment to WTO.

Ans- Agreements to be Followed In India
The main WTO agreements can be divided into the following categories :
1. Agreement on Agriculture
This provides a frame work for the long-term reform of agricultural trade and domestic
policies over the years to come with the objective increased market orientation in agricultural
trade. It provides for collective of introducing of market Access domestic support and export
competition. The comembers have to transform their non-tariff barriers like quotas in to
equivalent tariff measure.

2. Agreement on trade in textiles and clothing (Multi-Fibre Arrangement)

This provides for phasing out the import quotas on textiles and clothing in force under the
Multi-fibre Arrangement since 1974, over a span of 10 years, l.e. by the end of the transition
period on January 1 2005. As result, quotas on textile and clothing have now been abolished.

3. Agreement on Market Access

The member nations will cut tariffs on industrial and farm goods by an average of about 37
percent. The USA and the European Union will cut tariff between them by one- half.

4. Agreement on TRIMS
The agreement on Trade Related Investment Measures calls for introducing national
treatment of foreign investments and removal of quantitative restrictions.

5. Agreement on TRIPS
Prior to the TRIP agreement, the intellectual property rights concerning the trade (that
included patents, utility models, trademarks and industrial designs) were governed by the
Paris convention of 1863, which was revised up to 1967. In the field of food, medicines,
drugs and chemical products, the TRIPs Agreement provides for granting product patents
(whereas earlier on, process patents were used to be granted.) Such product patents will be
available for 20 years. In the case of copyright and related rights, protection will be available
for 50 years.

6. Agreement on Services
For the first time, trade in services like banking, insurance, travel, maritime transportation,
mobility of layout etc. was brought within the ambit of negotiations in the Uruguay Round.
The GATS (General Agreement on Trade in Services) provides a multilateral framework of
principles and services which should govern trade in services under conditions of
transparency and progressive liberalization.

7. Disputes Settlement Body

Settlement of disputes under GATT was a never-ending process. There was ample scope for
procedural delays, abjections could be raised at each stage of the dispute settlement process,
and penal reports could be rejected by the offending party.

Q.2. WTO Challenges & Problems for Indian Economy.

Ans- As India goes for globalization & opens the market for foreign commodities &
Investment, many new challenges are arising in front of Indian economy.
1. Inequality within the structure of WTO-
The structure of WTO is such where inequality exists among the members. Developed
country has definite advantage over developing countries.
Hence developed countries force developing countries to sign certain agreements through
bribing or threatening.

2. Trade Related Intellectual Property Rights

Agreement on TRIPS is highly in favour of developing countries. Under TRIPS, every WTO
member will have to provide 20 years protection to patents & 50 years protection to
copyright.

3. Trade Related Investment Measures

Developed countries achieved everything they wanted from TRIMS. Now developing
countries cannot discourage foreign investment in their economy. This will certainly serve the
interests of developed countries. Agreement on TRIMS provides for parity between home 7
foreign investments. But it is silent on controlling restrictive business practices of foreign
investment.

4. Competition in Services-
GATS provides for movement of services of different types from one country to another.

5. Non-tariff barriers
Use of non-tariff barriers by developed countries after the formation of WTO has affected
the exports from developing countries. 16 countries have introduced 13 types of non-tariff
barriers against India.

6. Agreement on agriculture
Developing countries that did not provide subsidies during 1986-88 will not be allowed to
introduce new subsidies. This agreement is also advantageous to developed
countries & will go against the interest of India.

7. Protection of environment
It implies that a country like India which has limited resources will have to divert them to
environment protection rather than on development of facilities.

8. Trespassing of Sovereignty of Nations

WTO is an international body which will not only encourage trade among in members. But
it will also set rules & regulations to be followed by the member nations. It will force the
member countries to change, amend & introduce laws in accordance with WTO agreements.
Q.3. WTO agreement on Agriculture with India.
Ans- India, like other member countries of the World Trade Organization (WTO), is subject
to the rules and commitments outlined in the Agreement on Agriculture (AoA). The AoA,
which came into force in 1995 as part of the Uruguay Round negotiations, aims to reform
and liberalize international agricultural trade while ensuring fair and equitable treatment for
all member countries. Here's a summary of India's involvement in the WTO Agreement on
Agriculture:
1. Tariffication and Tariff Reduction: Under the AoA, India agreed to convert non-
tariff barriers (such as quotas and import licensing) into tariffs known as
"tariffication." India committed to reducing and binding tariffs on agricultural
products, although it retains some flexibility to maintain higher tariffs for certain
sensitive products.
2. Domestic Support: The AoA categorizes domestic support measures into different
"boxes" based on their trade-distorting effects. India, as a developing country, has
specific commitments regarding the level of domestic support it can provide to its
agricultural sector. It has implemented various domestic support programs aimed at
promoting food security, rural development, and livelihood support for farmers.
3. Export Subsidies: The AoA aims to eliminate or significantly reduce export subsidies,
which distort international trade. India has taken steps to gradually phase out export
subsidies for agricultural products, in line with its commitments under the WTO.
4. Special and Differential Treatment: As a developing country member of the WTO,
India benefits from special and differential treatment provisions under the AoA. These
provisions recognize the developmental needs and constraints of developing countries
and provide them with flexibility in implementing their obligations.
5. Market Access: India has made commitments to improve market access for
agricultural products through tariff reductions and the elimination of non-tariff
barriers. However, it retains the right to use certain measures, such as import
restrictions, to safeguard domestic producers and ensure food security.
6. Special Products and Special Safeguard Mechanism: India has advocated for
special treatment for certain agricultural products that are vital for food security and
rural livelihoods. It has also called for the establishment of a Special Safeguard
Mechanism (SSM) to protect vulnerable farmers from import surges or price declines.
7. Negotiations and Dispute Settlement: India actively participates in WTO
negotiations on agriculture, including ongoing discussions on issues such as domestic
support, market access, and special and differential treatment. It also engages in the
WTO's dispute settlement mechanism to resolve trade disputes related to agricultural
issues.
Overall, India's involvement in the WTO Agreement on Agriculture reflects its efforts to
balance the need for agricultural trade liberalization with the protection of its farmers'
interests, food security objectives, and rural development priorities.
Q.4. Types of TRADE BLOCS.
Ans-
 Trade Blocs
Trading Blocs are the associations of countries situated in a particular region whereby they
come on to a common understanding regarding rules and regulations to be followed while
exporting and importing goods among them. Such blocs have liberal rules for member
countries while a separate set of rules is laid for non-members. For example, European
Union (EU), Association of South East Asian Nations (ASEAN) etc.
In simple world, we can say, A Trade Bloc is a type of intergovernmental agreement, often
part of a regional intergovernmental organization, where regional barriers to trade (tariffs
and non-tariff barriers) are reduced or eliminated among the participating states.

 TYPES OF TRADING BLOC

Free Trade Areas

Customs Unions
Common Market
Political Unions
Economic Union
These are further explained further as follows:

1. Free Trade Area

This is the simplest form of economic integration which provides for internal free trade
between member countries. Each member is allowed to determine its own commercial
policy with respect to nonmembers. For example, Latin American Free Trade Association
(LAFTA), North American Free Trade Area (NAFTA) between the USA, Canada and
Mexico; Asia Pacific Economic Cooperation (APEC) and COMESA.

2. Customs Union
A customs union is a more advanced form of economic integration which not only provides
for internal free trade between the member countries but also adopts a uniform commercial
policy against the non-members. The countries will be represented at trade negotiations with
organizations such as the World Trade Organization by supra-national organizations e.g. the
European Union. For example, European Economic Community (EEC).

3. Common Market
A common market allows free movement of labor and capital within the common market in
addition to having free movement of goods between the member countries and having
common commercial policy is respect to non-members.

4. Economic Union
This is a common market where the level of integration is more developed. The member
states may adopt common economic policies e.g. the Common Agricultural Policy (CAP) of
the European Union. They may have a fixed exchange rate regime such as the ERM of the
EMU. Indeed, they may have integrated further and have a single common currency. This
will involve common monetary policy. The ultimate act of integration is likely to be some
form of political integration where the national sovereignty is replaced by some form of
over-arching political authority. For example, the European Union (EU) has introduced a
common currency Euro 2000.

5. Political Union
Political union is the ultimate type of economic integration whereby member countries
achieve not only monetary and fiscal integration but also political integration. For example,
the Europe Union (EU) is moving towards a political union similar to one created by 52
states of America.

Q5. Explain European Union.

Ans- The European Union (EU) is a political and economic union of 27 member states
located primarily in Europe. It traces its origins back to the aftermath of World War II, with
the aim of fostering cooperation and integration among European nations to prevent future
conflicts and promote shared prosperity. Here's a brief overview of the European Union:
1. Member States: The EU currently consists of 27 member states, following the United
Kingdom's withdrawal from the union in 2020. Member states range from large
countries like Germany and France to smaller nations like Malta and Estonia.
2. Institutions: The EU is governed by several key institutions, including the European
Commission, the European Parliament, the Council of the European Union, the
European Council, the Court of Justice of the European Union, and the European
Central Bank. These institutions have various roles in policymaking, legislation,
budgeting, and decision-making within the EU.
3. Single Market: One of the EU's central achievements is the creation of a single
market, which allows for the free movement of goods, services, capital, and people
across member states. This has facilitated trade, investment, and economic growth
within the EU.
4. Customs Union: The EU operates as a customs union, which means that member
states apply a common external tariff on imports from non-member countries. This
promotes trade among EU countries and presents a unified approach to international
trade negotiations.
5. Eurozone: Nineteen EU member states have adopted the euro (€) as their official
currency, forming the Eurozone. The European Central Bank manages monetary
policy for the Eurozone, aiming to maintain price stability and support economic
growth.
6. Common Policies: The EU develops common policies in various areas, including
agriculture, fisheries, competition, energy, environment, transport, and regional
development. These policies are designed to harmonize regulations, promote
cooperation, and address common challenges across member states.
7. Enlargement: Since its establishment, the EU has expanded through several rounds of
enlargement, with new countries joining after meeting certain criteria related to
democracy, the rule of law, human rights, and economic stability. Enlargement has
helped extend stability, democracy, and prosperity to additional parts of Europe.
8. External Relations: The EU plays an active role in global affairs, engaging in
diplomacy, development assistance, and trade negotiations with other countries and
international organizations. It also promotes values such as democracy, human rights,
and the rule of law worldwide.
 9. Challenges and Reforms: The EU faces various challenges, including economic
disparities among member states, migration issues, Brexit, and internal debates over
the future direction of integration. Efforts to reform EU institutions, strengthen
governance, and address these challenges are ongoing.
Overall, the European Union represents a unique experiment in regional integration, aimed
at promoting peace, prosperity, and solidarity among its member states while advancing
common interests and values on the global stage.

Q.6. Explain SAARC in brief.

Ans- SOUTH ASIAN ASSOCIATION FOR REGIONAL COOPERATION (SAARC)
Regional or bilateral free trade agreements (RTA's/FTA's) have become important aspects
of a country's trade policy. More than half of the world trade is now conducted on
preferential basis within the FTA's. Therefore, countries cannot ignore formation of regional
integration. The trend started with the formation of the single European market by European
Union in 1992 and the NAFTA in 1994.
To bring about regional cooperation between South Asian countries, The South Asian
Association for Regional Co-operation (SAARC) was formally launched on 7-8 December
1985, though the idea was first marked in November 1980. The SAARC comprised of seven
countries of South Asia that is Bangladesh, Bhutan, INDIA, the Maldives, Nepal, Pakistan
and Sri-Lanka.

Objectives
SAARC was established to achieve the following objectives:
1. To promote the welfare of the peoples of South Asia and to improve their quality of life.
2. To accelerate economic growth, social progress and cultural development in the region
and to provide all individuals the opportunity to live in dignity and to realize their full
potential.
3. To promote and strengthen collective self-reliance among the countries of South Asia.
4. To contribute to mutual trust, understanding and appreciation of one another's problems.
5. To promote active collaboration and mutual assistance in the economic, social, cultural,
technical and scientific fields.
6. To strengthen co-operation with other developing countries.
7. To strengthen co-operation among themselves in International forums on matters of
common interests.
8. To co-operate with International and regional organizations with similar alms and
purposes.

Principles
The important principles which govern the SAARC are:
1. Cooperation within the framework of the association is based on respect for the principles
of sovereign equality, territorial integrity, political independence, non- interference in the
internal affairs of other States and mutual benefit.

2. Such cooperation is to complement and not to substitute bilateral or multilateral

cooperation

3. Such cooperation should be consistent with bilateral and multilateral obligations of

Member States

The progress of the regional cooperation movement among the SAARC member countries
is poor due to ethnic problems, border conflicts, differences in political systems and
ideologies. However, there are immense potentialities for mutual co-operation and joint
ventures and joint marketing strategies. Thus an integrated Programme of Action is
being implemented as a component of SAARC. Among the various programmes of the
SAARC the two most important are:

1. Poverty Eradication
2. Trade and Economic Cooperation

1. Poverty Eradication
Poverty Eradication has been placed high on the social Agenda of SAARC since the Sixth
SAARC Summit (Colombo, 1991). The Summit accorded the highest priority to the
alleviation of poverty in South Asia. A consensus on poverty eradication was adopted at the
Seventh SAARC Summit (Dhaka, 1993). The Summit expressed its commitment to
eradicate poverty from South Asia preferably by the year 2002 though an agenda of action
which would, inter-aila, include a strategy of social mobilization, policy of decentralized
agricultural development and small-scale labor-intensive industrialization and human
development. The summit also stressed that within the conceptual approach of Dhal- Bhaat,
the right to work and primary education should receive priority.

2. Trade and Economic Cooperation

SAARC has taken important steps to expand cooperation among member countries in the
core economic areas.
A high-level Committee on Economic Cooperation (CEC) comprising the Commerce
Secretaries of Member States was established in July 1991to act as the forum to address
economic and trade issues. The Committee is charged with the responsibility of inter-alia.
monitoring the progress in the implementation of decisions relating to expansion of trade
and economic cooperation under the framework of SAARC. It considers the reports of Inter-
Governmental Group (IGG) on trade liberalization, Inter Governmental Expert Group
(IGEG) on transition of South Asian Free Trade Area (SAFTA) and Committee of
Participants (COP), and other expert groups on customs, investments and standardization. It
also reviews progress on the implementation of decisions of meetings of SAARC
Commerce Ministers. As a step towards trade liberalization among SAARC member states,
a SAARC Preferential Trading Agreement (SAPTA) was signed by the Council of Ministers
in Dhaka on 11 April 1993 during the Seventh SAARC Summit
 Aiman Ma’am

1) Here are the 6 Hofstede cultural dimensions:

1. Power Distance: This dimension measures the extent to which people in a society accept
and expect that power is distributed unequally. Societies with high power distance have clear
hierarchies and people are comfortable with power differences, while societies with low power
distance tend to be more egalitarian and collaborative.

2. Individualism vs. Collectivism: This dimension measures the degree to which individuals
are integrated into groups. In individualistic societies, people are expected to look after
themselves and their immediate family, while in collectivistic societies, people are expected to
prioritize the needs of the group over their own.

3. Masculinity vs. Femininity: This dimension measures the distribution of emotional roles
between genders. Masculine societies emphasize assertiveness, materialism, and
competition, while feminine societies emphasize cooperation, relationships, and quality of life.

4. Uncertainty Avoidance: This dimension measures the extent to which a society tolerates
ambiguity and uncertainty. Societies with high uncertainty avoidance have strict rules and
regulations, while societies with low uncertainty avoidance are more flexible and adaptable.

5. Long-Term vs. Short-Term Orientation: This dimension measures the extent to which a
society focuses on the future or the present and past. Societies with long-term orientation
emphasize thrift, perseverance, and long-term planning, while societies with short-term
orientation emphasize living in the moment and enjoying life.

6. Indulgence vs. Restraint: This dimension measures the extent to which a society allows for
the gratification of basic and natural human desires related to enjoying life. Indulgent societies
have a permissive attitude towards impulse buying and leisure activities, while restrained
societies have a more controlling attitude towards such things.
2) The CAGE Framework
is used to uncover differences between countries which companies should taken into
account while deciding their strategies.

It helps organizations to find a middle ground between the measures they use and the
measure foreign organizations use.

CAGE Framework also helps in selecting an appropriate country for international

expansion.

1- Cultural difference

Culture is far from visible, yet its impact on behavior and morality of people is
enormous, be it a country or an organization.

Cultural Differences could be:

• Different languages
• Different ethnicities
• Lack of social networks
• Different religions
• Lack of trust
• Different norms and code of conduct
• Traditional orientation in the country

2- Administrative Differences

It involves the historical and current legal and political differences between two
countries. It helps the organization to understand how these differences will help or
hinder the expansion of business.

Administrative differences include:

• Lack of connection
• Lack of common currency
• Lack of membership in International Trade Organizations
• Corruption
• Political Ideology

3- Geographical Differences

It involves the physical aspect of the distance between two countries such as their size,
transport, infrastructure, climatic differences and others.

Though the geographical difference is measured in kilometres, Globalization and

digitization have reduced the difference due to Internet, social media etc.
The Geographical distance includes:

• Physical distance
• Lack or presence of borders
• Different time zones
• Climatic differences
• Different diseases

4- ECONOMIC DIFFERENCES

It involves economic differences between countries in terms of income, purchasing

power, distribution of wealth and gross domestic product, natural resources,
infrastructure, factors of production etc.

The Economic distance includes:

• Differences between poor and rich

• Differences in costs
• Differences in quality
• Different natural resources
• Different financial means
• Differences in human resources
• Difference in knowledge and access to information

Advantages of CAGE Distance Framework

1) Bilateral Assessment of country pairs

It allows organizations to compare attributes of home and foreign country against each
other.

2) Flexibility

This framework can be used by a variety of industries such as, bulky goods manufacturer
might focus more on geographic distance whereas media companies may focus more on
cultural distance.

3) Liability Identification

It also helps businesses to identify gaps that may hinder its competitiveness in relation to
the local businesses.
3) Culture and Leader Effectiveness: The GLOBE Study
• The "Global Leadership and Organizational Behavior Effectiveness" (GLOBE)
Research Program was conceived in 1991 by Robert J. House of the Wharton
School of Business, University of Pennsylvania.
• To gauge leader effectiveness across cultures, GLOBE empirically established
nine cultural dimensions based on findings by Hofstede (1980), Schwartz (1994),
Smith (1995), Inglehart (1997), and others. They are:

1. The power distance index considers the extent to which inequality and power are
tolerated from the viewpoint of the followers – the lower level.

2. Uncertainty Avoidance: The extent to which a society, organization, or group relies

on social norms, rules, and procedures to reduce unpredictability of future events.

3. Humane Orientation : The degree to which a group encourages and rewards

individuals for being fair, generous, caring, and kind to others.

4. Collectivism I : (Institutional) The degree to which organizational and societal

practices encourage and reward collective distribution of resources and collective action.

5. Collectivism II : (In-Group)The degree to which individuals express pride, loyalty,

and cohesiveness in their organizations or families.

6. Assertiveness : The degree to which individuals are assertive, confrontational, and

aggressive in their relationships with others.

7. Gender Egalitarianism : The degree to which a collective minimizes gender

inequality.

8. Future Orientation : The extent to which individuals engage in future-oriented

behaviours such as planning, and investing in the future.

9. Performance Orientation : The degree to which a collective encourages and rewards

group members for performance improvement and excellence.

4) Reasons for Expanding into Foreign Markets

1. Explore Markets with better profitability
2. Achieve Economies of Scale with a larger consumer base
3. Reduce over dependence on any one market
4. Take global competitors head-on on their home turf
5. Serve customers who are abroad.
5) Modes of entry
1. Exporting and Importing

Selling goods or providing services to companies based in a foreign country is referred

to as exporting. Purchasing goods or availing services from companies based in a foreign
country is referred to as importing.

Exports and imports are the typical way through which businesses begin their activities
overseas before moving on to other kinds of international trade

Ways to Import and Export:

i. Direct Importing/ exporting: All paperwork, financing requirement, and

negotiation is carried out by the importer/exporter.
ii. Indirect importing/ exporting: All paperwork, financing requirement, and
negotiation is carried out by a middleman such as trading companies, export
management companies.
iii. Indirect exports: The manufacturer hires an expert to facilitate the exchange and
pays fees in return. For example: Manufacturers’ export agent, manufacturers’
representative, export commission agents (consignments).

2. Contract Manufacturing

• Contract manufacturing is a type of international business, in which a firm enters

into a contract with another firm in a foreign country to manufacture certain
components or goods as per its specifications.
• Here, the company is specialised in the manufacturing process but lacks marketing
skills, whereas the other company, due to its established reputation, is capable of
selling those items and services.
• Multinational firms, like Maybelline, Loreal, Levis, and others use contract
manufacturing to have their products or component parts produced in developing
nations. Contract manufacturing is also known as international outsourcing.

• In this arrangement, the MNC subcontracts the production in two ways :

 In one scenario, the MNC enters into a full production contract with a local plant
producing goods to be sold under the name of the MNC.
 In a second scenario, the MNC enters into contracts with another firm to provide
partial manufacturing services, such as assembly work or parts production.

Examples:

1. Apple has historically used contract manufacturing to produce its products, leveraging
the expertise of companies such as Foxconn and Pegatron based in Taiwan to
manufacture iPhones, iPads, and other popular devices. One advantage of contract
manufacturing is that it can help companies like Apple reduce production costs and
focus their resources on design and development. That’s why Apple mentions on the
box- ‘Designed in California’

2. Furniture giant Ikea, after designing the product, outsource the production to China to
reduce cost.

3. Nike, uses a network of contract manufacturers in countries such as China, Vietnam,

and Indonesia to produce shoes and other products

Advantages:

1. MNC can integrate vertically without full- scale commitment of personnel and
resources.
2. It expands the production expertise of contracting firm at minimum cost.

Disadvantages:

1. Degree of control of the MNC over the production supply timetable is sacrificed.

3. Licensing

• When a corporation from one country (the Licensor) grants a license to a company
from another country (the Licensee) to use its brand, patent, trademark,
technology, copyright, marketing skills etc., to assist the other firms to sell its
products, then this contractual agreement is referred to as Licensing.
• The licensor receives returns in the form of royalties or fees in proportion to sales.
• The company that grants the license is called Licensor and the company that
receives these rights is called Licensee.

Advantages:

1. Low investment of licensor.

2. Low financial risk of licensor
3. Licensor can investigate the foreign market
4. Licensee saves R&D expenses.
5. Licensee does not have to bear the risk of product failure.
6. No obligation of ownership, managerial decisions, investments etc.

Disadvantages:

1. For the licensor, it limits the future profit opportunities associated with the
property for a said time period.
2. The licensor loses control over the quality of products and processes, the assets
and corporate reputation.
3. 3. Managing product quality is a shared responsibility between the parties.
4. 4. Chances of misunderstanding
 5. 5. Chances of trade secrets being leaked by the licensee.
6. Examples:
7. 1. In May 2018, Nestle and Starbucks entered into a $7.15 billion coffee licensing
deal. Nestle (the licensee) agreed to pay $7.15 billion in cash to Starbucks (the
licensor) for exclusive rights to sell Starbucks’ products (single-serve coffee, teas,
bagged beans, etc.) around the world through Nestle’s global distribution network.
Additionally, Starbucks will receive royalties from the packaged coffees and teas
sold by Nestle.
8. The licensing agreement provided Starbucks with the ability to drive brand
recognition outside of its North American operations through Nestle’s distribution
networks. For Nestle, the company gained access to Starbucks’ products
and strong brand image.

4. Franchising

• Franchising is a contractual agreement that involves the grant of rights by one

party to another for use of technology, trademark, and patents in return for the
agreed payment for a certain period of time.
• The business that gives the rights is called Franchisor and the business that
purchases the rights is referred to as Franchisee.

Advantages:

1. Low investment and low risk to the franchisor.

2. Franchisor learns from the experience of the franchisees
3. Franchisees get the benefit of R&D and Brand name at a low cost.

Franchisee has no risk of product failure

Disadvantages:

1. Shared responsibility for managing product quality and promotion.

2. Risk of leakage of trade secrets.
3. Reduced market opportunities for both franchisor and franchisee.
4. Chances of misunderstanding.

Examples:

1. McDonald’s was founded in 1940 by the McDonald brothers in California. However,

it was their business associate Ray Kroc who opened the first official franchise for the
McDonald’s System, Inc. now known as McDonald’s Corp. As of 2023, there were more
than 38,000 McDonald's restaurants in more than 100 countries, and 93% of them are
owned and operated by local business people.
5. Joint Ventures

• A Joint Venture is formed when two or more businesses decide to work together
for a common goal and mutual benefit.
• In International Trade, JV are businesses where both domestic and foreign
entrepreneurs are partners in ownership and management.
• These businesses share the investment, costs, profits, and losses in predetermined
proportions.
• This mode of entry is suitable when the foreign governments do not allow 100%
foreign ownership in certain industries.

• Advantages:

1. Both partners can use their expertise to grow and expand within a chosen market
2. The domestic partner’s knowledge about the local market and its business
environment helps to overcome risks.
3. JV enables transfer of technology, intellectual properties and assets, knowledge of
overseas market between the partnering firms.

• Disadvantages:

1. There is a possibility of cultural clashes within the organization due to differences

in organization culture in both partnering firms.
2. In case of dispute, dissolution of a JV is subject to lengthy and complicated legal
process.
3. Examples:

Taxi giant Uber and heavy vehicle manufacturer Volvo announced a joint venture
agreement to develop self-driving cars. The two companies planned to jointly
invest $300 million in the project, each contributing $150 million. Hence, the
ownership ratio between the two companies was 50%-50%. Uber provided its
ride-hailing services and autonomous technology expertise, while Volvo
contributed its experience in automotive design and manufacturing

6. Wholly Owned Subsidiary

• When a foreign company establishes a business unit or acquires a full stake in any
domestic company, then they are called a Wholly-owned Subsidiary.
• WOS are set by a foreign company to enjoy full control over their overseas
operations.
• WOS in a foreign country can be established in two ways:

a. Greenfield Investments: Setting up a wholly-owned new firm in the foreign land.

b. Brownfield Investments: Acquiring an established firm in a foreign land and

redeveloping it to do business in a foreign country.
7. Mergers and Acquisitions

MERGERS

A Merger occurs when two separate entities combine forces to create a new, joint
organization. A merger requires two companies to consolidate into a new entity with a
new ownership and management structure. It dilutes each company’s individual powers.

ACQUISITIONS

An Acquisition refers to the takeover of one entity by another. Here, a new company is
not formed rather a smaller company is often consumed and ceases to exist with its
assets becoming a part of the larger company. Acquisitions aka takeovers have a
negative connotation. Here, the buyer’s powers are absolute.

Examples:

1. Vodafone and Idea: Vodafone is one of the largest telecommunication groups based
in the United Kingdom. Idea Cellular was the first multinational company under the
Birla group established in 1995. Idea Cellular was the third-largest telecom company in
India, with a market share of 15.9%.

The horizontal merger amongst the two biggest players in the telecom industry was
effected in August, 2018. This merger deal was worth $23 billion. The merged company
will enjoy synergy benefits. The estimated savings annually would go up to 14,000
crores in the form of both capital expenditure as well as operating costs. The merged
company would gain 400 million subscribers, a customer market share of 35%, and a
revenue market share of 40%.

2.Pfizer and Warner-Lambert: Pfizer and Warner-Lambert announced their intention

to join, a transaction completed in June 2000, creating the world's most valuable and
fastest-growing pharmaceutical company. The acquisition is known to be the most
hostile one as earlier Warnert-Lambert was to be acquired by American Home products
which later walked out of the deal. This deal benefitted Pfizer as it obtained control over
the most sought drug- Lipitor.

8. Foreign Direct Investment

• FDI involves a company entering an overseas market by making a substantial

investment in the country.
• Modes of entering the International market through FDI is Mergers and
Acquisitions, Joint Ventures, Greenfield Investments, Brownfield investments.

 Why to go for FDI?

a. Overcome the restrictions or import limits on certain goods.

b. Manufacturing locally can save import duties.
c. Advantage of low-cost labor, cheaper material.
Advantages of FDI

1. Can benefit from low-cost labor, cheap material etc. to reduce manufacturing cost,
reduce prices and gain competitive advantage in the market.
2. Foreign companies can avail subsidies and tax advantages from local governments
for making investments in their country.
3. Retain control over business operations.

Disadvantages of FDI

1. High level of political risk if the government uses policies to protect and support
local businesses against foreign companies.

Involves huge investment to enter an international market.

6) Factors Considered for Selecting a Country for doing International

Business
• Culture
• Economic system- Degree of Government Intervention
• Economic situation- forecasting demand of products
• Exchange rates- dealing in Strong & Weak Currency
• Political Risks and Regulations- Political behaviour of a country affects the
business

7) Reasons for IB
1- Uneven Distribution of Natural Resources E.g. Import of Petrol from Gulf and the
USA

2- Availability of Productivity Factors e.g. Indian Labour is cheap

3- Specialization e.g Olives grown in Mediterranean countries

4- Cost Advantages e.g. Products from China are cheap due to low-cost technology
8) EPRG
• EPRG Framework was given by Howard Perlmutter and Wind and Douglas in
1969.
• It describes the ways in which businesses operate in the global market.
• There are 4 Management Approaches as outlined in EPRG to manage business
activities effectively in home country and the host country.
• It addresses the way strategic decisions are made and the way relationship
between the headquarter and its subsidiary is shaped.

1-Ethnocentric Orientation

 The practices and policies followed by the HQ in the home country become the
default standard to which all subsidiaries need to comply.
 The product is not adapted as per the need of the host country.
 There is no change in the product specification, price and promotion between the
home and host market.
 High positions in the company are taken by managers from the home country
itself.

Why do companies use Ethnocentric Approach?

Some companies believe that their products are already of high quality and they
need not to be adapted to the local preferences of host market.

Also, in the home country, the product performs well and is expected to be sold in
such great volumes even in the overseas market.

Advantages:

1. Better coordination between home and host country as decisions are centrally
taken.
2. Saves cost of hiring top level managers in International market as the officials
migrate from the home country.
3. The parent can exercise effective control over the subsidiary.

Disadvantages:

1. Shows cultural short- sightedness of the organization

2. The failure rate of this approach is high in the global market.

Examples:

1. Failure of Nissan in the USA market.

2. Standard products of Haldiram.
3. Products of Amul.
4. Failure of Walt Disney in France.
 5. Failure of Walmart in Japan.

2- Polycentric Orientation

 This approach gives equal importance to every country’s domestic market. Each
host country is treated separate and strategies are formulated.
 It believes that all markets are different in nature and thus have different needs.
 The strategic decisions are based on the cultural and political differences.
 High positions are taken by local managers.

Advantages:

1. Lower manpower cost as officials from home country are not required to run
operations
2. As local officials have knowledge about the local market, they can take market
centric decisions.
3. Better support from Host Government

Disadvantages:

1. Lower control of HQ over the management of host country operations

2. Overall cost of the company increases in adapting the product as per the host
country needs and in product promotion.
3. Chances of conflict
4. Loss of Synergy

Examples:

1. Quick Service Restaurants like Mc Donalds, Burger King, SubWay have localized
their menu to fit the tastes and preferences of the consumers.

In India, Mc Donalds serve Aaloo tikki burger for Vegetarians

In European nations, it serves wine along with soft drinks.

In the Netherlands, it offers a special Dutch Cookie Mcflurry in its menu.

2. Google’s doodle adapts itself according to what is being celebrated in the country of
the user on that particular day.

3- Regiocentric orientation

 A company finds economic, cultural or political similarities among regions in

order to satisfy the similar needs of potential consumers.
 For example, countries like Pakistan, India, Bangladesh possess a strong regional
identity.
 The businesses using this approach believes that the market in the same region
share the same characteristics of the market in the home country.
  Same strategies for NAFTA Countries- North American Free Trade
Agreement (the United States of America, Canada and Mexico)
 Higher level official is selected from within the region that closely resembles the
Host Country.

Advantages:

1. Cultural fit in the region makes it convenient for the managers to communicate with
each other and employees.

2. Customers from same region have similar preferences and hence it is easy to market
the products

Disadvantage:

1. There is a confusion between regional and global objectives.

Example:

1. McDonald’s strategy of not serving pork or only serving animals slaughtered

through the Halal process in the Middle eastern countries is following
Regiocentric approach.
2. The companies operating in the Europe, would treat EU as one regional market.
3. Goodyear International, has clubbed countries with similar economic landscape
such as: Asia-Pacific as one region, Europe as another; Latin America; North
America, Middle East and Africa.

4- Geocentric Orientation

 The Management sees the whole world as a potential market.

 The management considers that there are minimal differences in terms of
marketing environment amongst different countries. Thus, the company must keep
a world oriented view rather than country specific, multi-domestic approach.
 Companies follow this approach as it does not involve many adoptions which
minimizes the operational costs.

Advantages:

1. Benefits of synergy and economies of scale.

2. It seeks the best people for the key jobs throughout the organization, regardless of
nationality.
3. Reduces cultural myopia (short sightedness)

Disadvantages:

1. It is a challenge to find a Management that is capable of adapting to multiple

styles at once.
Examples:

1. Viacom’s MTV channels are branded according to the country namely, MTV
India, MTC China, MTV Korea and so on.
2. Microsoft Office software- Word, Excel, PowerPoint, Access, Outlook.

Coca-cola and Pepsi- same content, packaging, branding