India’s Foreign trade

27 Jun

1. ABC Limited was doing well in the local market and was planning to expand its business in the foreign market as well but was worried about how will they collect the payment from the importers located in other countries. Is it possible for the company not to face credit risk in the foreign market, if yes, how? Explain using examples.

2. A chemical company was planning to enter into strategic alliance with another chemical company for growth. Elaborate the reasons for the company to engage in strategic alliance.

3. Alpha Ltd was in the business of manufacturing ayurvedic products and was performing well in the Indian Market. The company had broad range of products currently selling in the market. Looking at the growing demand of ayurvedic products in the foreign market as well, the company was planning to export its goods to other countries as well. If you are the manager of the company, prepare a report highlighting:

a) Reasons that would motivate the company for entering foreign market.

b) Benefits that would be available to Alpha Ltd as exporters.

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