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Assignment Set – 1


  1. Discuss the role of ‘Mercantilism’ and ‘Absolute Advantage’ theories in regulating international trade with suitable examples.

Ans 1.

The Role of Mercantilism and Absolute Advantage Theories in Regulating International Trade

International trade theories have long influenced global commerce practices and policies. Among these theories, mercantilism and absolute advantage hold significant historical and practical relevance. This essay explores their roles in regulating international trade, supported by suitable examples.


Mercantilism, prevalent from the 16th to 18th centuries, posits that a nation’s wealth and power are best served by increasing exports and accumulating precious metals like gold and silver. Mercantilists


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  1. The orientation of a company’s top management, beliefs, and assumptions significantly impact its approach to international marketing. The said statement is exhaustively elaborated by EPRG framework. Discuss in detail with examples.

Ans 3.

Impact of Top Management’s Orientation on International Marketing: The EPRG Framework

The orientation of a company’s top management, beliefs, and assumptions plays a crucial role in shaping its approach to international marketing. This influence is encapsulated by the EPRG framework, which categorizes management orientations into four distinct types: Ethnocentric, Polycentric, Regiocentric



  1. One of the most difficult choices that foreign marketers must make is whether to adoptproduct standards or adjust existing items. How would you justify the statement? Give example to support detailed explanation.

Ans 3.

Adopting Product Standards vs. Adjusting Existing Items: A Critical Choice for Foreign Marketers

One of the most challenging decisions faced by foreign marketers is whether to adopt product standards or adjust existing items to fit local markets. This choice is complex and influenced by various factors such as cost, consumer preferences, regulatory requirements, and competitive landscape. This essay justifies the statement and provides examples to illustrate the decision-




Assignment Set – 2



  1. Explain in detail the major commercial documents which protects the interests of both the exporter and importer and helps in fulfilling the legal requirements of the two countries.

Ans 4.


In international trade, various commercial documents play a critical role in protecting the interests of both the exporter and the importer, ensuring the smooth execution of transactions, and fulfilling the legal requirements of the involved countries. This essay explains in detail the major commercial documents used in international trade.

  1. Proforma Invoice

A proforma invoice is an initial bill of sale sent to buyers in advance of a shipment or delivery of goods. It outlines the


  1. Write a short note on

Fixed Exchange Rate

Flexible Exchange Rate

Ans 3.            

Fixed Exchange Rate

A fixed exchange rate, also known as a pegged exchange rate, is a system where the value of a country’s currency is tied or pegged to the value of another single currency, a basket of other currencies, or another measure of value, such as gold. This means that the government or central bank intervenes in the foreign exchange market to maintain the currency’s value within a narrow band. The primary advantage of a fixed exchange rate is the stability and predictability it provides to




  1. Describe and elaborate the jurisdictional and non- jurisdictional procedures for settling international business conflicts.

Ans 6.

Jurisdictional and Non-Jurisdictional Procedures for Settling International Business Conflicts

Jurisdictional Procedures

Jurisdictional procedures involve resolving disputes through formal legal mechanisms under the authority of judicial bodies. These include litigation in national courts and arbitration conducted under established international rules.


Litigation is the process of resolving disputes in a court of law. In international business, litigation can occur in either the courts of the country where the business transaction took place or where the contract specifies jurisdiction. Courts will apply either domestic law or international law principles