COURSE NEWS MKT 451

International Marketing 

Instructor: Dr. Jitendra Tewari

Postings, Updates, and Links to Notes

 

 

Link to Notes in International Marketing

Lesson 1

Lesson 2

Lesson 3

Lesson 4

Lesson 5

Lesson 6

Lesson 7

Lesson 8

Lesson 9

Lesson 10

Lesson 11

Lesson 12

 

 

Assignment Due on Tuesday 16th September:

 

International Marketing: Graded Assignment 1

 

Exchange Rate and Commercial Transactions: Answer each question based on the information given in the paragraph just above the question.

 

Sit: 1                John is a USA based exporter. The current exchange rate is $ 1 = 0.75 Euro. John expects the exchange rate to change to $ 1 = 0.90 Euro three months later. John is quoting today for the sale of  $ 1000 worth of merchandise. He will be paid three months later.

 

Q 1:     What do you suggest: should John quote in dollars or in Euro. Make a calculation to show how many dollars John will be able to get by exchanging his Euro earnings for Dollars, at a bank three months later, in case John quotes in the Euro today.

 

Sit. 2                John is a USA based exporter. The current exchange rate is $ 1 = 0.75 Euro. John expects the exchange rate to change to $ 1 = 0.50 three months later. John is quoting today for the sale of  $ 1000 worth of merchandise. He will be paid three months later.

 

Q2:      What do you suggest: should John quote in dollars or in Euro. Make a calculation to show how many dollars John will be able to get by exchanging his Euro earnings at a bank three months later, in case John quotes in the Euro today.

 

Sit. 3                John is a USA based exporter. The current exchange rate is Euro 1 = $ 1.75 . John expects the exchange rate to change to Euro 1 = $ 1.50 three months later. John is quoting today for the sale of  $ 1000 worth of merchandise. He will be paid three months later.

 

Q3:      What do you suggest: should John quote in dollars or in Euro. Make a calculation to show how many dollars John will be able to get by exchanging his Euro earnings at a bank three months later, in case John quotes in the Euro today.

 

Sit. 4                John is a USA based exporter. The current exchange rate is Euro 1 = $ 1.75 . John expects the exchange rate to change to Euro 1 =  $ 2.00 three months later. John is quoting today for the sale of  $ 1000 worth of merchandise. He will be paid three months later.

 

Q4:      What do you suggest: should John quote in dollars or in Euro. Make a calculation to show how many dollars John will be able to get by exchanging his Euro earnings at a bank three months later, in case John quotes in the Euro today.

 

The Questions that follow are complete in themselves and do not require any additional situational information.

 

Q5: If the dollar is considered “strong,” currently; will American firms tend to set up new ventures in USA or should they invest abroad? Explain the logic behind your answer.

 

 

Q6: If the Euro is appreciating, then will:

 

(a) American Exports increase or decrease – analyze what will happen to both the Quantity and Value of Exports. Explain why.

(b) Imports (Quantity and Value) into America will increase or decrease – explain why.

 

Q7:  Harry is an American investor, who has the choices of setting up manufacturing units in USA or Europe. With the Euro appreciating continuously with respect to the dollar, you would expect Harry to invest in USA or invest in Europe. Explain your answer.

 

Q8. The Yen has been depreciating with respect to the dollar for quite some time, and the same pattern is expected to continue in the future. How would the flow of Japanese investment to USA be affected. Explain.

 

 

 

FINALS

Exchange Rate Problems

Exchange Rate Determination/Factors Behind

Dual Exchange rates

Administered exchange rates

Exchange rates and elasticity

Barriers to Trade- monetary/non monetary

Types of Import Tariffs

Import Licenses-types

Working with import licenses

Market value of import licenses

Export licenses

L/C’s – various types, mechanisms, use

Bills of exchange

Forfeiting/factoring

Institutions etc- IMF, World Bank- Role, differences

Regional Groupings-NAFTA/EU

Free Trade Zones, Export under bond, duty drawback

INCO TERMS