1) Explain the terms GDP, GDP-P and PPP. Bring in a correlation between the three through an example. (Max 5-7 lines)

2. What are the three key learnings from the study of the GM and LG India Approach case.(Max 5-7 lines)

3. Name two countries each of High and Low Context Societies .What are the three typical characteristics of these societies

4. Explain the term “Pure Economy”. What is good about such an economy additionally why do most countries have a Hybrid or Mixed Economy

5. Why should India open it borders and businesses for International trade. How does it help the nation. What should India be mindful of as it opens to the World for trade. (Max 5-7 lines

6. Name typical three modes of entry in International Business. Explain any two.

Answer

1)

Nominal GDP is GDP, which is determined using the prices of the year or quarter to which GDP is related. With rises in real production and even changes in general price inflation, nominal GDP can rise or decrease over time. Nominal GDP, therefore, is compared to real GDP. The price level of one specific year (the base year) is used by actual GDP and therefore excludes the impact of price inflation. Compared to countries, nominal GDP often represents current market exchange rates (if, say, you equate two countries' GDP in current dollars, as is usual).

GDP per capita is the GDP that is divided by the population of the region to which GDP refers. A fundamental indicator of the quality of life in a place is GDP per capita, and, more specifically, actual GDP per capita. Instead of market exchange rates, PPP GDP uses Purchasing Power Parity exchange rates to equate the GDP of two nations. The PPP is an exchange rate that, given the exchange rate, sets the cost of a standard collection of goods and services equal in both countries. For example, if a hamburger costs $3.00 in the US but costs 300 yen in Japan, the yen-to-dollar PPP exchange rate will be 100 to 1. PPP exchange prices are also the rates we expect to tend toward market exchange rates, and since multiple items globally do not sell at the same effective price, there are great possibilities for arbitrage that would drive the exchange rate down to PPP.

Therefore, PPP GDP is another means of ensuring that we equate actual production, not any peculiar consequence of fluctuations in exchange rates.

2)

1. To G.M. In coping with concerns, LG India should work on product faults and avoid being dismissive. By not addressing the complaints, they give buyers the run around.

2. Its enormous scale is another key concern. To have it turned around takes an excessive amount of time, even though they finally get on track as to what customers expect. In addition, LG learnt an valuable lesson about the complexities of joint venture management in developing markets. As the Indian government maintained at the time that all foreign businesses would only have to reach India through a local collaboration, LG had started talks for a potential joint venture agreement with one of India's leading business groups.

3. GM India's leadership did not persuade the India storey's global team to drive investments in. They could not clarify the complexities of the business and rang alarm bells with the diesel ban instead.

4. India is a market which is special. With tragic consequences, many MNCs want to recreate their foreign experience in India.

5. Pricing is another problem. Periodic premium rebates and interest subsidies have become familiar to the consumer. Sales are being negatively influenced because G.M. But for the Cavalier model, it now does not have a price-war, interest-subsidy policy.

3)

Relational, collectivist, intuitive, and contemplative can be a high-context society. On interpersonal relationships, they put a high priority and group members are a very close-knit culture.

1. Partnerships rely on trust, steadily grow up, and are secure. One differentiates between individuals within and individuals outside one's range.

2. Implicit is verbal message

3. Consistency is appreciated. It is crucial how well everything is understood.

A low-context society would be less tight-knit, because when reading messages, people talking will have less contextual signs. Therefore, to be used in the message, more detailed detail is required so that it is not misinterpreted.

1. Partnerships easily begin and stop. Many individuals will be inside the circle; the limit of the circle is not explicit.

2. There is an explicit textual message. Instead of words, meaning is less relevant.

3. Pace is respected. It is crucial how efficiently everything is understood.

High-context culture is practised by countries such as Japan, Arab countries and certain Latin American countries; "High-context conversation holds much of its data within physical activities and characteristics such as preventing eye contact or even shoulder shrug."

Low-context societies are known to be countries such as Germany, the United States & Scandinavia. Without requiring prior knowledge of the past or context of each member, these countries are very clear and elaborate.

4)

A "pure" market economy is a theoretical model where (they behave in a perfect way) the forces of demand and supply are perfect. This model is used to understand how the economy works globally, but where supply is in the hands of a few and the population is inflexible, it has no connection to the realities of contemporary society. A pure capitalist economy has minimal government interference. Since pure capitalist markets have NEVER and WILL NEVER need to exist. The explanation for this is that everyone needs to give the money you use in a monetary society value at some stage (almost nothing has an intrinsic value for anyone, beyond food / water / air, and as value shops, they are terrible). Because of an apparent need to preserve the value of the money, the body will still have regulatory authority. It is prudent to have the same agency responsible for monitoring the security of actual capital and with at least some control over the distribution of resources (which they can have anyway, since they will raise the funds to purchase as many as they like). The planet has several competitive free market economies in view of these needs and widely agreed intelligent practises, including (but not limited to):

• The United States

• Hong Kong

• Great Britain

• Australia

• Germany

Literally, anywhere you can own and sell land and services without undue interference from the state, where rules and regulations are simply and fairly enforced and exist for good purposes.

5)

For both national and multinational entities, foreign business is significant. This gives them different advantages.

National Rewards.

1. It allows a nation to receive foreign exchange that can be used from the global market to purchase merchandise.
2. It encourages a country's specialisation in the manufacture of merchandise that it manufactures in the safest and most Economical way.
3. It also allows a nation to boost its chances for growth and also to build job opportunities.
4. International business makes it possible for consumers to use goods and services generated in other countries that can raise their quality of living.
5. India has many opportunities to benefit from expanded investment in the world economy and greater engagement in global and regional supply chains. It will fuel productivity, generate employment and reduce poverty. It will add so much to the progress of the campaign 'Make in India'.
6. India could play in the architecture of global markets as a leading country. Multilateralism is declining and the world trade system is unable to respond to modern technical developments in order to resolve questions regarding the use of agricultural subsidies and the role of state-owned companies in foreign markets.

6)

Exporting exports
An object made in a domestic market may be exported abroad. The storage and refining is primarily carried out in the home country of the supplier group. Exporting can increase the volume of sales. If a business collects and sells canvassed products, it is called Passive Export. Alternatively, it is known as Successful Export if a strategic decision is made to create appropriate processes for coordinating export functions and securing international sales.

Benefits: Low investment; Less risk

Disadvantages: Unknown sector; No international market control; Lack of external environment knowledge

Licensing The

Mode of access, intellectual property rights, inventions, copyrights, brand identity, etc. are leased by the manufacturer of the home country, the manufacturer that leases is known as the licensor and the manufacturer of the country who earns the licence identification known as the licensee.

Advantages-Low licensor investment; Low licensor financial risk; Licensor is free to explore the overseas market; Licensee's R&D investment is low; Licensee is not at risk of product failure; Any international position may be selected to benefit from the advantages; No ownership obligations, management decisions, investment, etc.

Disadvantages-Limited opportunities for all parties involved; the consistency and marketing of the commodity must be handled by both parties; the dishonesty of one party can influence the other; chances of misunderstanding; chances of the licensor revealing business secrets.

Joint Investment Firm

It is considered a joint venture if two or more businesses come together to create a new corporate organisation. In a joint venture, the beauty is the shared ownership. Joint projects can be facilitated by environmental factors such as social, technological, fiscal, and political conditions.

Advantages: Joint ventures provide vital funds for big projects; risk sharing with or between partners; provides the sides with skills , technologies, experience, marketing.

Disadvantages: Disputes may arise; delay in one party's decision-making impacts the other party and it can be costly; the venture may fail due to rivals' entrance and shifts in the power of the partner; slow decision-making due to the participation of two or more decision-makers.