SIKKIM MANIPAL UNIVERSITY - DDE

Master of Business Administration MBA Semester III

IB 0011 / MK 0018 4 Credits
International Marketing
(Book ID B1811)
Model Question Paper
Duration: 3 hours

Total marks: 140

Section A
ESSAY TYPE QUESTIONS (10 Marks each)
[Please answer Any Four of the questions on the Answer Sheet separately provided for the
purpose.]
(10*4=40 Marks)

1. Describe the organizational structure and role of UNCTAD.

[Refer to Unit 3]
2. International marketing research is a critical part of marketing intelligence system. In light
of this statement, explain scope of international marketing research.
[Refer to Unit 5]

3. INCOTERMS are a set of three-letter standard trade terms most commonly used in
international contracts for the sale of goods. Explain the different types of INCOTERMS. Also,
explain the non-price factors affecting pricing in international markets.
[Refer to Unit 8]
4. Describe the tools of international marketing communication?
[Refer to Unit 10]

Case Study
Controversial Business and Labor Practices of the Coca-Cola Company (Coca-Cola)

The case discusses some of the alleged controversial business and labor practices of the CocaCola Company (Coca-Cola) and its bottlers in a few countries.
The case discusses in detail about the allegations made against Coca-Cola's labor practices in
Columbia, environmental and product issues in India, and trade practices in Mexico.
The case also highlights the rise in consumer activism as it includes details of the ban imposed
on Coca-Cola's products by some university campuses in the US and Europe on account of
pressure by student unions and other activist organizations.
Origin
Coca Cola was invented by Dr. John Smith Pemberton (Pemberton) on May 8, 1886, at Atlanta,
Georgia in USA. The beverage was named Coca-Cola because at that time it contained extracts
of Coca leaves and Kola nuts. Frank M. Robinson (Robinson), Pemberton's book-keeper and
partner, who came up with the name for the drink, suggested that it be spelt Coca-Cola rather
than Coca-Kola because he thought the two C's would look better while advertising.
Robinson designed the now world famous Coca-Cola trademark as well. Pemberton later sold
the business to a group of businessmen, one of whom was Griggs Candler (Candler). By 1888,
several forms of Coca-Cola were in the market competing against each other. Candler acquired
these businesses from the other businessmen and established The Coca-Cola Company in 1892.
He aggressively marketed the product through advertising, distribution of coupons and
souvenirs, and promoted the brand name Coca-Cola... the Coca-Cola drink, popularly referred to
as 'Coke', is a kind of cola, a sweet carbonated drink containing caramel and other flavoring
agents

Accusations
The campaign by student activists and trade union groups to ban Coca-Cola had been going on
for several years in different countries. Coca-Cola was accused, along with its bottling partners,
of hiring paramilitary death squads in Colombia to kidnap, intimidate, or kill its union leaders
and other workers at its bottling plants. Since 1989, around eight union leaders of Coca-Cola's
plants in Colombia had been murdered and many others abducted and tortured. In India, CocaCola had to face opposition from the local people around its factory in Plachimada, Kerala, who
charged that the company was responsible for the draining of the underground water table.
The Ban
The University of Michigan in the US put on hold the sale of the products of The Coca-Cola
Company (Coca-Cola) in all its campuses, thus becoming the tenth US University to do so. Other
prominent US universities that had banned Coca-Cola on similar grounds were the New York

University, the largest private university in the US, Rutgers University in New Jersey, and the
Santa Clara University in California. The University of Michigan and The New York University
were Coca-Cola's largest campus markets in the US.The ban was the outcome of a relentless
campaign by student activists and trade union groups, who accused Coca-Cola of violent labor
practices in Colombia and of creating environmental problems in India.
Labor Practices in Colombia
Colombia is widely considered as one of the most dangerous countries in the world for trade
union activists and union leaders. The country was in the midst of a four-decade-old civil war
involving leftist guerrillas, right-wing paramilitary groups, and government forces.
The civil war claimed approximately three thousand lives a year including those of many
trade union leaders and workers. It was reported that in 2000, three out of every five trade
unionists killed in the world were from Colombia. In 2001, SINALTRAINAL, a Colombian
labor union, charged that Coca-Cola and its bottlers Panamerican Beverages (Panamaco),
Bebidas y Alimentos De Uraba, and Coca-Cola Femsa, were linked to the violence against its
union members in Colombia. Around eight union leaders of Coca-Cola's plants in Colombia had
been murdered since 1989, and many others had been abducted and tortured. Coca-Cola was
accused of hiring paramilitary death squads to kidnap, torture, or kill union leaders and
intimidate worker union activists at its bottling plants...
Trade Practices in Mexico
Mexico was a very important market for Coca-Cola as the country was second, after the US, in
terms of per capita consumption of soft drinks in the world. The Mexican market for soft drinks
was estimated at US$ 6.6 billion for the year 2004. Over the years, some of the highest profit
margins for Coca-Cola in its overseas operations came from Mexico. Coca-Cola was the number
one seller of soft drinks in Mexico with a 70% market share. Coca-Cola's largest bottler in
Mexico was Coca-Cola Femsa (CCF) in which Coca-Cola had a 40% stake.
Environment & Product Issues in India
In India, Coca-Cola was accused of draining the underground water table, of releasing
improperly treated industrial effluents, and of selling products containing pesticide residues
above standard limits. The focal point of the environmental accusations in India was the CocaCola plant located in Kerala. Coca-Cola, through its subsidiary in India, The Hindustan CocaCola Beverages Pvt. Ltd., had established a bottling plant at Plachimada locality in Palakkad
district in Kerala.
The unit was established in 1998-99 in a 40-acre plot that had previously been used for irrigation
of paddy and other food crops. The factory site was located in the proximity of a main irrigation
canal that drew water from a nearby barrage and reservoir...

Boycott of Coca-Cola Products

In July 2001, SINALTRAINAL, with the help of United Steelworkers of America (USWA) and
the International Labor Rights Fund (ILRF), filed a lawsuit against Coca-Cola and its Colombian
bottlers at a court in Miami, Florida, under the Alien Tort Claims Act (ATCA) of the American
Judicial System. It accused them of being responsible for a campaign of murder and intimidation
against its unionized workers and charged that it was using right wing paramilitary groups for the
purpose. The US judge dismissed these charges against Coca-Cola in Colombia but approved the
charges against the local bottlers in Colombia...
Coca-Cola's Response
Coca-Cola opened an exclusive website, www.cokefacts.org, to address these allegations,
especially those related to Colombia and India. In an official statement featured on the website,
Coca-Cola claimed that the allegations against the business practices in Colombia were false.
Ethics & Values in Coke
Coca-Cola said that it had always conducted its business with responsibility and ethics. The
company's business practices were aimed at creating value at the marketplace, providing
excellent working conditions, protecting the environment, and strengthening the communities in
the places of operation.
Commitment to quality and a code of business conduct were evolved to ensure good business
practices. According to Coca-Cola, its commitment to quality was reflected in every facet of its
business. These included commitment to product quality, quality in business processes, and in its
relationships with suppliers and retailers.
The quality system was reviewed constantly so that the performance bar for these standards was
always kept high. The quality guidelines were communicated to all business units and their
implementation reviewed. The company introduced the Coca-Cola Quality System (TCCQS) to
achieve these quality objectives.

Two different judicial enquiries in Colombia, one by a Colombian court and the other by the
Colombia Attorney General, had found no evidence against Coca-Cola or its bottlers linking
them to the murders of the union members.
Coca-Cola also quoted a judgment in the lawsuit at Miami, Florida, wherein the judge had
dismissed the charges against Coca-Cola, Columbia.

(Source: http://www.icmrindia.org/casestudies/catalogue/Business%20Ethics/CocaCola%20Business%20Practices%20%20Facing%20the%20Heat%20in%20a%20Few%20Countries.html)

Questions
6. What are the issues and allegations faced by Coca-Cola in Colombia, India, and Mexico?
7. Elaborate the challenges faced by multinational companies due to the rise in consumer
activism.
[Refer to Unit 14]

Section B
Multiple Choice Questions (MCQ)
[Please answer all the following questions]

Answer the following One-Mark questions (from 1 to 50)

(1*50=50

marks)
1. ___________________deals with marketing practices within a firms own country.
a.
b.
c.
d.

Domestic marketing
Foreign marketing
Comparative marketing
International marketing

2. Which of the following defines the belief systems, thinking patterns and behaviour of people
in any country.
a.
b.
c.
d.

Attitude
Culture
marketing
Promotion

3. A company with _____________________approach deals with the whole world, based on the
home-country perspectives.
a. Ethnocentric

b. Polycentric
c. Regiocentric
d. Geocentric
4. In which of the following approach, the firm employs a single marketing strategy within the
region but not across the regions.
a.
b.
c.
d.

Ethnocentric
Polycentric
Regiocentric
Geocentric

5. ________________implies the seizure of a companys assets without offering any

compensation.
a.
b.
c.
d.

Confiscation
Nationalisation
Domestication
Expropriation

6. _________________economy is an economic system in which both public and private sectors

co-exist.
a. Mixed
b. Capitalist
c. Socialist
d. Totalistic

7. _____________________refers to unconscious reference to ones own cultural values,

experiences and knowledge, as a basis for making decisions.
a. Counterfeiting
b. Attitudes
c. Self-Reference Criteria (SRC)
d. Grey markets

8. ____________refers to the degree of inequality among people who are viewed equal.
a. Power distance
b. Self-Reference Criteria (SRC)

c. Culture
d. Masculinity

9. UNCTAD is the most important organisation, established in 1964 under the UN system,
promoting the trade interests of the developing countries. What does UNCTAD stand for?
a. United Nations Call on Trade and Development
b. United National Conference on Trade and Development
c. United Nations Conference on Tourists and Development
d. United Nations Conference on Trade and Development

10.______________________ provides guarantees to foreign investments against risks;

technical support to DCs and LDCs for investment promotion and other consultancy services.
a. Multilateral Investment Guarantee Agency (MIGA)
b. United Nations Conference on Trade and Development
c. The International Centre for the Settlement of Investment Disputes
d. International Monetary Fund

11. Which of the following institution is a lender of the last resort to countries with chronic
payment problems?
a. Multilateral Investment Guarantee Agency (MIGA)
b. United Nations Conference on Trade and Development
c. The International Centre for the Settlement of Investment Disputes
d. International Monetary Fund

12. INCOTERMS is an acronym for ________________________

a. Industrial Commercial Terms
b. Insurance Commercial Terms
c. Irrevocable Commercial Terms
d. International Commercial Terms

13. Which of the following is NOT part of Hofstede s cultural Classification Scheme?
a. Power Distance
b. Individualism
c. Masculinity
d. Nationalism

14. A belief that our own Political & Legal System is better than other countries and others
should change their system to ours is called:
a. Jingoism
b. Polycentrism
c. Racism
d. Ethnocentrism

15. ___________is when competitors make different offerings across the entire market.
a. Market segmentation
b. Market differentiation
c. Market Positioning
d. Market Promotion

16. ___________is based on the customers needs and their subsequent reaction to those needs
or towards the purchase of intended products and/or services

a. Behavioural segmentation
b. Psychographic segmentation
c. Demographic segmentation
d. Ethnocentric segmentation
17. Which of the following statements is not true regarding Globalization.

a. Globalisation allows firms to view the world as an integrated marketplace, and this has
reduced the cost and nature of operations of international firms.
b. Globalisation has reduced the competition, raising the global standards of quality.
c. Globalisation has also increased the demands for advanced technology and innovation
d. Globalisation has increased customer satisfaction.
18. Which of the following two countries are exceptions to the English common Law?
a. Britain and France
b. Germany and France
c. Japan and Latin American countries
d. China and India
19._____________ refers to those transactions in which the goods supplied do not leave the
country and the payment for such supplies is received either in Indian rupees or in free foreign
exchange.
a. Deemed Exports
b. Physical Exports
c. Special Economic Zones
d. Restricted exports
20. __________________ means offering a uniform product on a regional or worldwide
basis.
a. Customisation
b. Standardisation
c. Miniaturisation
d. Assimilation
21. _______________is made up of institutions and other forces that affect a societys basic
values, perceptions, preferences and behaviour.
a. Political Environment
b. Economic Environment
c. Socio Cultural Environment
d. Technological Environment

22. __________ Scheme aims at involving states in infrastructure development for promoting
export activities aimed at development of infrastructure for exports.
a. ASIDE Scheme
b. MDA Scheme
c. Focus Market Scheme (FMS)
d. Focus Product Scheme (FPS)

23. Evaluation of two or more different marketing systems and identifying similarities and
differences between them is known as ____________
a) Domestic marketing
b) Comparative marketing
c) Foreign marketing
d) International marketing
24. Segmenting people according to their lifestyle and value is called
a. Behavioural segmentation
b. Psychographic segmentation
c. Demographic segmentation
d. Geographic segmentation

25. Which of the following is a market in which there is the hidden demand for the product.
a. Existing markets
b. Latent market
c. Incipient markets
d. Stable market

26. A process to eliminate the markets, which obviously do not have enough potential is
called______________.
a. Preliminary screening
b. Demographic screening

c. Cultural screening
d. Economic screening
27. ________________are those that are offered in multinational or in regional markets.
a. International products
b. National products
c. Hidden products
d. Private products
28. Which of the following is the first step of International product development process.
a. Product development
b. Business analysis & forecasting
c. Product testing
d. Idea generation

29. Which of the following term means accommodating the local tastes and preference in the
product or service portfolio.
a. Product allocation
b. Product development
c. Product adaptation
d. Product standardisation

30. ___________________can be defined as any influence that the country-of-manufacture has

on a consumers positive or negative perception of a product.
a. Country of Origin Effect (COE)
b. Brand positioning
c. Product adaptation
d. Product standardisation

31. Which of the following includes variable costs, direct labour, variable production overhead,
variable administrative overheads, etc.
a. Distribution cost
b. Indirect cist
c. Fixed cost
d. Direct cost
32. ______________often determines as to what level an exporting firm may reduce its price
without adversely affecting its profitability.
a) Marginal cost pricing
b) Full cost pricing
c) Transfer pricing
d) Skimming Pricing
33. The system of moral principles and rules of conduct applied to business is known as:
a. Moral ethics
b. Business ethics
c. Social ethics
d. Conduct ethics
34. After the cargo is loaded on the ship, the Commanding Office of the ship issues a
_____________.
a. Delivery challan
b. Mates receipt
c. Port challan
d. Shippers receipt

35. Under which of the following strategy, exporters offer a very low introductory price to speed
up their sales, thereby widening the market base.
a. Market penetration strategy
b. Probe pricing strategy

c. Follow the leader pricing strategy

d. Skimming pricing strategy

36. ____________________is one of the oldest forms of trade wherein the buyer pays something
other than money for purchase of goods and services.
a. Market penetration
b. Counter-trade
c. Dumping
d. Transfer trade

37. ________________ is a function of buying power, tastes, habits, cultural norms and
substitutes.
a. Customer needs
b. Customer demand
c. Competition
d. Company costs

38. Wide gaps in the price sensitivity between countries for the same product many times create
conditions that promote _________________ marketing.
a. Black
b. Grey
c. White
d. Demand

39. Selling a product below the cost of production or at a lower price in foreign markets
compared to domestic markets is termed as __________________.
a. Dumping
b. Counter-trade
c. Transfer trade
d. Grey market

40. Under which of the following pricing, a very high introductory price is fixed to skim the
cream of the demand at the very outset.
a) Marginal cost pricing
b) Full cost pricing
c) Transfer pricing
d) Skimming Pricing

41. ________________includes fixed costs and variable costs.

a. Overhead cost
b. Selling cost
c. Distribution cost
d. Total cost

42. _______________involves the movement and distribution of materials and the information
associated with the management of distribution channels.
a. Logistics management
b. Channel length
c. Channel width
d. Indirect channel

43. Which of the following is the market intermediary who brings a buyer and seller together
and who gets a fee paid.
a. Export broker
b. Buying offices
c. Importer
d. Exporter

44._______________ refers to planning and implementation of a system for flow of goods and
services from the producer to the ultimate customers across the borders.

a. Marketing
b. Country of Origin Effect (COE)
c. Brand positioning
d. International logistics
45. A kind of marketing in which sales people are employed to communicate face-to-face with
prospective customers is called__________________
a. Advertising
b. Sales promotion
c. Publicity
d. Personal selling

46. The practice of working with the re-seller for selling the product at the point of sale is called
________________.
a. Push strategy
b. Pull strategy
c. Product positioning
d. Product segmentation
47. Which of the following comprises advertising, publicity, sales promotion and public
relations?
a. Promotional mix
b. Product mix
c. Pull strategy
d. Product segmentation

48. SEZs is a specially delineated duty-free enclave and are deemed to be foreign territory for the
purposes of trade operations and duties and tariffs. What does SEZ stand for?
a. Special Economic Zilla
b. Special Economic Zones
c. Smart Economic Zones

d. Special Enter Zones

49. Which of the following is a ticket that offers the bearer a discount on purchase?
a. Coupon
b. Sample
c. Barter
d. Contest

50. ______________may be defined as the long-term participation of two or more companies in

an enterprise in which each party contributes assets, has equity participation and shares risks.
a. Joint venture
b. Strategic alliance
c. Marketing alliances
d. Distribution alliances

Answer the following Two-Mark questions (from 51-75)

(2*25=50

marks)

51. Which of the following two statements are CORRECT?

I. A pull strategy is defined as pre-selling the product so that buyers seek it out or ask for it at the
point of purchase.
II. A push strategy is defined as pre-selling the product so that buyers seek it out or ask for it at
the point of purchase
III. A pull strategy is defined as working with re-sellers or assisting them in selling the product at
the point of sale.
IV. A push strategy is defined as working with re-sellers or assisting them in selling the product
at the point of sale.
a. Statements I and II
b. Statements III and IV
c. Statements I and III
d. Statements I and IV

52. The form of Political System where ultimate power lies with people is known as
________________________________ whereas the form in which the absolute Power lies with
Single Individual or group of People is known as____________________.

a. Democracy; Autocracy
b. Socialism; Capitalism
c. Democracy; Capitalism
d. Autocracy; Oligopoly

53. i) __________ is often used in international sale of plant and machinery wherein the seller
undertakes the obligation to buy the products made from the plant and machinery supplied,
over an agreed upon period.
ii) ___________ is the most ancient and simplest form of counter-trade. It is a one-time direct
and simultaneous exchange of products of equal value (one product for another).
a. Buy-back; counter-purchase,
b. Buy-back; Barter
c. Counter-purchase; Buy-back
d. Counter-purchase; Barter

54. Which of the following two statements are INCORRECT?

I. Selling a product below the cost of production or at a lower price in foreign markets
compared to domestic markets is termed as dumping.
II. Imported goods in this case are sold at prices that are too low, proving to be detrimental to
local producers of the same kind of merchandise.
III. Under probe pricing, a very high introductory price is fixed to take advantage of the demand
at the very outset.
IV. Selling a product below the cost of production or at a lower price in foreign markets
compared to domestic markets is termed as transfer trade.
a. Statements I and II
b. Statements III and IV

c. Statements I and III

d. Statements I and IV

55.i.) _____________as the buying and selling of products, services, and information via
computer networks including the internet.
ii.) Whereas ___________is the conduct of business on the Internet, including buying and
selling, servicing customers and collaborating with business partners.
a. e-commerce ; e-business
b. e-business ; e commerce
c. e marketing ; online marketing
d. e commerce; e marketing

56. Consider the following statements:

Statement 1: Diffusion of Innovations is a theory that seeks to explain how, why and at what rate
new ideas and technology spread through cultures.
Statement 2: The product profile should be determined during the preparation of characteristics
of the new products innovation study.
a. 1 True; 2 False
b. 1 False; 2 True
c. Both 1 and 2 are true
d. Both 1 and 2 are false

57. Which of the Statement is TRUE regarding Fourth Party Logistics (4PL) operators:
I. Information technology plays an important role in 4PL operations, comprising elements of
people, process and technology.
II. Unlike 3 PL Operations due to 4PL arrangements, the retail chain now has a complete
visibility of its supply chain.
a. Statement I & II are True
b. Statement I is False & II is True
c. Statement I is True & II is false
d. Both Statements I & II are False

58. The appropriate transportation mode depends on market location, _______ and ________.
a. Price ; promotion
b. Speed ; cost
c. Demand ; Supply
d. Customer need ; Location
59. i) ____________ provides monthly bulletins/reports on currency and finance/exchange
control manual/foreign exchange regulations.
ii) International marketers rely largely on ___________ sources of information for the purpose of
selecting overseas markets.
a. Reserve Bank of India; Secondary
b. Directorate General of Commercial Intelligence ; Primary Data
c. Ministry of Commerce; online Information
d. IMF; UNCTAD

60. Which of the Statement is TRUE regarding Market Segmentation.

Statement 1: Market segmentation is the process of sub-dividing a market into distinct sub-sets
of customers that behave in the same way or have similar needs.
Statement 2: Segmentation does not involves costs and risks
a. 1 True; 2 False
b. 1 False; 2 True
c. Both 1 and 2 are true
d. Both 1 and 2 are false

61.i) _____________ has to do with the fundamental principles of conduct in keeping with the
universal values such as human rights; obedience to the law of the land; concern for health,
safety, environment and similar well-accepted values.
ii) There is an increasing demand on global businesses to be accountable to all stakeholders
whether employees, local customers and society at large known as ____________
a. Ethics; Corporate Social Responsibility
b. Values; CSR
c. Morality; Accountability

d. CSR; Ethics

62. Which of the following two statements are INCORRECT?

I. A global marketer should know that a product may be at any of the different stages in its life
cycle in different markets.
II. Creating a unique product identity and branding strategy is not important in ensuring the
success of the company.
III. Adaptation means accommodating the local tastes and preference in the product or service
portfolio
IV. International Product Life Cycle (IPLC) discusses the demand patterns of a product in most
of the countries
a. Statements I and II
b. Statements III and IV
c. Statements I and III
d. Statements II and IV

63. Consider the following statements:

Statement 1: Political upheavals, revolutions or changes in government policies that occur
regularly can have a considerable impact on international marketing.
Statement 2: Economic risk means the loss to a companys business interests due to unstable
political environment in the host country.
a. 1 True; 2 False
b. 1 False; 2 True
c. Both 1 and 2 are true
d. Both 1 and 2 are false
64. Which of the following two statements are INCORRECT?

I. Economic environment comprises economic growth, interest rates, exchange rates, inflation
rate, fiscal policy, monitory policy.
II. Capitalism is an economic system in which business units or private entities own and manage
factors of production.
III. Socialistic economy is an economic system in which both public and private sectors co-exist
IV. There are various pure market or command allocation systems among the worlds
economies.
a. Statements I and II are incorrect
b. Statements III and IV are incorrect
c. Statements II and IV are incorrect
d. Statements I and III are incorrect
65. i) ___________________refers to unconscious reference to ones own cultural values,
experiences and knowledge, as a basis for making decisions.
ii.) _______________implies science and technology based solutions that are successfully
deployed in the economy.
a. Self-Reference Criteria (SRC); Innovation
b. Innovation; Capitalism
c. Democracy; Capitalism
d. Self-Reference Criteria (SRC); Democracy

66.i) __________________is a multilateral development institution whose purpose is to assist

its developing member countries in their economic and social development.
ii) _______________provides finance, through loans and equity financing, to private sector
industries.

a. World Bank Group; International Finance Corporation

b. International Finance Corporation; World Bank Group
c. Multilateral Investment Guarantee Agency; World Bank Group
d. World Bank Group; Multilateral Investment Guarantee Agency

67. i) ____________________is a systematic study based on statistical, mathematical or

computational techniques on collected data with the aim of finding patterns or relationships
between various parameters.
ii) ______________means that the intended results are obtained through the research.

a. Qualitative research; MIS

b. International marketing; Validity
c. Quantitative research; Validity
d. Casual research; Qualitative research

68. Consider the following statements:

Statement 1: Desk research is the collection of data and information from previous research
studies, documentaries or other publications.
Statement 2: The international marketing research plan is a blueprint for the study, indicating all
the decisions to be made with regard to information sources, research methods, data collection
instruments, and sampling procedures.
a. 1 True; 2 False
b. 1 False; 2 True
c. Both 1 and 2 are true
d. Both 1 and 2 are false
69. Which of the following two statements are INCORRECT?
I. International market segmentation means sub-dividing the market for particular goods or
services into segments of customers who differ in terms of their response to marketing strategies.
II. An international market consists of customers with similar needs, customers in a market are
homogenous.
III. Demographic segmentation is based on measurable characteristics of the population such as
age, gender, income, education and occupation.
IV. In latent markets, demand for a product can be generated, provided infrastructure support
facilities are created.

a. Statements I and II are incorrect

b. Statements III and IV are incorrect
c. Statements II and IV are incorrect
d. Statements I and III are incorrect

70. Which of the Statement is TRUE regarding logistics.

Statement 1: Logistics is confined to manufacturing operations only.
Statement 2: The primary objective of any logistics system is to make optimum use of the
resources available.
a. 1 True; 2 False
b. 1 False; 2 True
c. Both 1 and 2 are true
d. Both 1 and 2 are false

71. i) __________________ is concerned with the number of times a product changes hands
among intermediates before it reaches the final consumer.
ii) __________________is related to the number of middlemen at a particular point or step in the
distribution channel.
a. Distribution channel; Channel length
b. Channel length; Channel width
c. Channel width; Direct channel
d. Indirect channel; Direct channel

72. Which of the Statement is TRUE regarding Duty Exemption Schemes.

Statement 1: Duty Exemption Schemes enable duty-free import of inputs required for export
production.
Statement 2: The purpose of Duty Exemption schemes is to allow duty-free import/procurement
of inputs or to allow replenishment either for the inputs used or for the duty component on
inputs used.
a. 1 True; 2 False
b. 1 False; 2 True

c. Both 1 and 2 are true

d. Both 1 and 2 are false

73.i) ____________________describes the online transactions between business entities.

ii) ____________________allows customers to interact with each other directly to bid (online
auctions) for products and services.
a. B2B (Business-to-Business) model; C2C (Customer to Customer)
b. e-commerce; C2C (Customer to Customer)
c. Portal; e-commerce
d. B2C (Business-to-Customer); C2C (Customer to Customer)

74. Which of the Statement is TRUE regarding Globalisation.

Statement 1: Globalisation has intensified the competition, raising the global standards of
quality.
Statement 2: Global firms are able to develop networks and linkages with foreign supply chains.
a. 1 True; 2 False
b. 1 False; 2 True
c. Both 1 and 2 are true
d. Both 1 and 2 are false

75. Which of the following two statements are INCORRECT?

I. Licensing is the mode of entry in which a firm of a country offers to allow a company in
another country to use its expertise through a written contract called the license.
II. Exporting is a well-established form of market entry because it does not require foreign
investment in production facilities.
III. Franchising is not a form of licensing.
IV. The selection of different modes of entering a market does not depends on the cost, the risk
factors, and the degree of control that can be exercised over them.
a. Statements I and II are incorrect
b. Statements III and IV are incorrect

c. Statements II and IV are incorrect

d. Statements I and III are incorrect