Page 244 - DMGT401Business Environment

Unit 10: Foreign Trade

7. Why do you think that P&G which is otherwise a bigger company in other nations is much Notes
behind Unilever in India?
8. "Well developed ancillaries units facilitate the FDI". Discuss.

9. "Perhaps biggest beneficiary of the FDI is the Indian consumer". Do you agree? Justify.
10. There is a thin line that differentiates a Global company and MNE. Discuss the difference
sand similarities using examples.

11. Suppose you are the MD of an Indian electronics company. Your company wants to expand
its market to foreign territory. Considering the fierce competition in the industry, which
five countries would you like to expand to and why?
12. With reference to the above questions, how will you use the resources of those countries
to maximum advantage and what steps will you take to penetrate the market?

13. "Multinational corporations have become too powerful in absolute terms as well as relative
to governments." Substantiate.

Answers: Self Assessment

1. True 2. False
3. True 4. False

5. True 6. True
7. True 8. Foreign Investment Promotion Board
9. Bharti Group 10. Transnational

11. Balance of Payments 12. Knowledge Transfer
13. Aditya Birla Group

10.7 Further Readings

Books Paul Justin, Business Environment: Text and Cases, Tata McGraw Hill, New Delhi
Saleem Sheikh, Business Environment, Pearson Education, New Delhi
Vivek Mittal, Business Environment, Excel Books, New Delhi

Online links business.mapsofindia.com/fdi-india
dipp.nic.in/fdi_statistics/india_fdi_index.htm
exim.indiamart.com/indian-exim-policy

www.cafod.org.uk/content/download/3686/.../secondaryFG27
www.indianground.com/corporate/corporate_india.aspx
www.sezindia.nic.in
www.sezindia.nic.in/HTMLS/SEZ%20Act,%202005

www.tradechakra.com/direct-foreign-india-investment

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