Global Marketing Management Week 7 NPTEL Assignment Answers 2025

NPTEL Global Marketing Management Week 7 Assignment Answers 2024

1. When trade takes place between a parent company and its subsidiaries abroad, and also between foreign subsidiaries across national boundaries, it is often referred to as-
a. Intra-firm sourcing
b. Domestic in-house sourcing
c. Offshore subsidiary sourcing
d. None of these

✅ Answer: a
Explanation: Intra-firm sourcing involves trade between parts of the same multinational company across borders — such as a parent company and its foreign subsidiaries.

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2. ____________ is an area that is located within a nation but is considered outside of the customs territory of the nation.
a. Free processing zone
b. Free trade zone
c. Free trade zone
d. None of these

✅ Answer: b
Explanation: A Free Trade Zone (FTZ) allows goods to be imported, handled, manufactured, and re-exported without intervention from customs authorities — considered outside of the country’s customs boundaries.

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3. Which of the following types of exporting involves the use of independent intermediaries or agents to market the firm’s products overseas-
a. Direct exporting
b. Indirect exporting
c. General exporting
d. None of these

✅ Answer: b
Explanation: Indirect exporting uses intermediaries such as agents or export houses who handle the overseas marketing without the producer dealing directly with foreign customers.

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4. The identification of an appropriate overseas market involves which of the following criteria-
a. Socioeconomic characteristics
b. Political and legal characteristics
c. Consumer variables
d. All of these

✅ Answer: d
Explanation: All these factors — economic status, political environment, and consumer behavior — must be studied when selecting international markets.

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5. Packing Credit advance in pre-shipment stage is granted to new exporters against lodgment of L/C or confirmed order for-
a. 30 days
b. 90 days
c. 180 days
d. 365 days

✅ Answer: c
Explanation: Packing credit is a short-term working capital finance provided for up to 180 days before shipment to enable exporters to purchase raw materials, process, pack, and ship goods.

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6. While exporting “The basic agreement and payment term from seller to buyer” is known as-
a. Commercial invoice
b. Consular invoice
c. Bill of lading
d. Airway bill

✅ Answer: a
Explanation: A commercial invoice is the main document that outlines the sale terms, price, and payment conditions between the exporter and importer.

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7. If the importer is not in a position to supply the detailed particulars of goods because of insufficiency of information supplied to him by the exporter he has to prepare a statement called a –
a. Bill of lading
b. Bill of sight
c. Bill of acceptance
d. None of these

✅ Answer: b
Explanation: A Bill of Sight is used when the importer is unsure of the exact nature of the goods and needs to inspect them before paying customs duty.

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8. The bonded warehouses are used by the importer when-
a. He has no godown of his own.
b. He cannot pay the duty immediately.
c. He wants to re-export the goods and thereby does not want to pay the duty.
d. All of these

✅ Answer: d
Explanation: Bonded warehouses are used to store imported goods before customs duties are paid. They’re useful for all the listed reasons.

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9. Which of the following type of international planning strategy is considered decentralized-
a. Top-down
b. Bottom-up
c. Both Top-down and Bottom-up
d. None of these

✅ Answer: b
Explanation: In the bottom-up approach, local subsidiaries take initiative and plan strategies suitable for their market — making it a decentralized model.

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10. The principle designs that firms can adopt to organize their global activities include-
a. International division
b. Product based structure
c. Geographic structure
d. All of these

✅ Answer: d
Explanation: Global firms may organize operations based on geography, products, or international divisions depending on their goals and structure.