1. Application of Material from Ch 4
First review the attached document from the Automotive Component Manufacturers Association of India (ACMA) on the automotive components market in India. Then review the U.S. government document with the title: Doing Business in India. Discuss why India may be an attractive country to sell into:(market entry) as well as to export from. Make sure to reference and cite a number of specific details in the documents. Broad generalizations not supported by facts will not receive any points. The link is provided below to Doing Business in India. The answer should be no more than two pages.
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2. Application of Ch5 Material
As a first step into the domestic Indian market your company decides to export products to India. Refer to the U.S. Government website - Doing Business in India and then discuss the pros and cons between hiring an Agent to represent your company in India or to using an Indian distributor. The link to Doing Business in India is provided below. The answer should be no more than two pages.
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3. Application of Material from Ch 6 and 9 (no rubric is necessary)
Assume you have decided to export to an Indian distributor. Answer each of the following questions:
a. Explain what a pro-forma invoice is and how it relates to a commercial invoice
b. What are the export documents you need to complete to ship auto parts from the USA to India?
c. What are the transportation documents you will need to complete to ship from the USA to India in ocean containers by a competitive shipping line?
d. The Indian distributor wants your company to ship ocean containers of product using the CIF Incoterm. What does this term mean and what are your responsibilities as the exporter?
4. Application of Material from Ch 7
Your company has decided to export to an Indian distributor. A major concern you have is getting paid by this distributor. You have asked the distributor to use irrevocable letters of credit.
a. Discuss the non-payment risks involved
b. Describe in step-by-step detail how payments in an irrevocable letter of credit works
c. Explain how an irrevocable letter of credit helps to minimize the risk of non-payment
5. Application of Material from Ch 8
Refer to Chapter 8 and the two attached documents ( Pakko and Lafrance) in answering the questions below:
a. What does Chapter 8 advise regarding how to manage transaction risk exposure?
b. As your company goes 'global' briefly explain the Theory of Purchasing Power Parity and discuss why it is important.
Please follow instructions carefully. The total answers of the 5 questions are flexible in number of pages, it must be accurate and efficient in content.
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