National Institute of Technology 2009-1st Sem M.B.A International Business IV Sem - - Question Paper

Q: three (B) Why are brand names an important marketing tool for International business?

Ans:

A brand is an identifying mark for products or services. When a company registers a brand legally it is a trade mark. A brand provide a product or service instant organization and may save promotional costs. MNCs must make 4 major bonding decisions.

1. Brand versus no brand
2. manufactures brand versus private brand
3. one brand versus multiple brands
4. worldwide brand versus local brands,

The international environment substantially affects only the last of these branding decisions. a few companies such as coca-cola have chosen to use the identical brand and logo globally. Other companies such as Nestle associate many of their products under the identical family of brands such as the Nestea and Nescafe brands. In order to make sure that these brands all share in the companies’ good will. There are number of issues in trying to use uniform brands internationally.

Much international expansion takes place through the acquisition of companies in foreign that already have branded products. For example, when Avon acquired Justine in South Africa it kept Justine name because the brand was well known and respected.

Companies should consider whether to create a local or a foreign image for their products. The products of a few countries particularly developed countries tend to have a higher quality image than do those from other countries, for example Czech associate locally made products with poor quality, so P & G has added German words to the tags of detergent it makes in the Czech republic but images can change, consider that for many years different Korean companies sold abroad under private tags or under contract with well known companies. a few of these Korean companies such as Samsung now emphasize their own trade names and the quality of Korean products. Companies want their product names to become household words but so much that competitors can use trade mark brand names to define their similar products.

Q: four (A) Why do home countries oppose export of technology?

Ans:

Detractors cite examples of advanced technology that has been at lowest partially developed through government contracts and then transferred abroad. In fact a few US MNCs move their newest technology abroad before they do so in the United States. An example is Boeing transfer of aerospace technology to china to produce aircraft parts. According to critics of Boeing did not transfer the technology china would have had to purchase the products in the US their by increasing employment and o/p their, these critics further agree that technology transfer will speed the process of china’s gaining control of future global aircraft sales. Alternatively other countries that have Boeing not obtained a way to make the sale then china might have bought aircraft from airbus industries or independently developed the technology itself.

Earning:   Approval pending.