Question

Question1   
Government has its own reasons to justify their actions when intervening in a free trade environment: protection of the national economy, protection of an infant industry, national security and national culture and identity.
Distinguish any THREE (3) justifications by the government by providing your support or otherwise for each with relevant examples.

Question 2
The competitive pressure in global marketplace forms two important dimensions for internationalizing firms. Analyze any THREE (3) strategies using the following two dimensions: pressure for global integration and pressure for local responsiveness.   

Question 3   
Industry market potential is an estimate of the likely sales for all companies in a specific industry during a particular period. Managers use various methods to estimate industry market potential. There are at least six methods for a manager to gather the information. Use THREE (3) methods that are used by these international managers.

Answer 1

1)government may intervening free trade by providing protection infant industries because-

a)infant industries can not compete will large industries as they are already at minimal cost so can provide products at cheap price which infant can't.so in free trade they can't exist

b)from free trade big industries can gain but as those belongs to other nations their profit will go to other nations not invest the home country.it can be a leakage from economy.so government want to protect home infant industries.

c)from free trade a country can completely depends upon other country.but at any circumstances like war any country deny to export essential products they importing country may be in huge trouble.so to protect from this kind of situations countries protect home infant industries to less dependent of forign countries

2)competitive pressure in global marketplace forms two dimensions for internationalizing firms as

a)in the local market there may be more rival competitive firms so industries have to sell there product at lower cost.but in world market there may be monopoly so they can earn excess profit by charging high price.

b)in home country industry can get support from the government so they can charge lower price but in foreign market there are transportaion cost and many country charges importing charge so there price may be higher.

c)it also depends on the size of market like mobile companies charge higher price in europe but less in India as India has a huge market demand.

3)international managers use various measures to estimate market potential are

a)as all the industries and economy is co-related so manager should follow the share market to gather knowledge about the economy.if the economy is healthy then industry will perform well and vice-versa

b)international manager follows the oil pricing and dollar exchange rates.those can be the barometer of the whole international economy as a whole.as a barometer oil price and dollar exchange rates predict the future of market.

c)internationl managers estimating market survey by the political and economical condition of the economy by itself.