M.

MUSTUJAB ALI
ROLL NO 1512-115015
BBA (evening)
SERVICE MARKETING-2
Q#1 exporting is often comes first
Export growth is important because of its effect on internal trade and economic stability. Even
more, the rate of economic growth and the distribution of income and wealth in a country are
closely related to export growth.”

Growth of an economy is directly related to exports. If exports increase at a faster pace as compared
to imports, nothing can stop an economy from being a developed one. On the other hand, the
instability in exports can adversely affects the process of economic development. Lower exports
mean low foreign exchange and lower foreign exchange in turn means a small purchasing capacity
of a nation in the international market.

Fluctuations in export earnings introduce uncertainties in an economy. These uncertainties

influence economic behavior by adversely affecting the level and efficiency of investment and in
turn have a negative effect on growth. In addition to the above factors, export growth is also
important because of its effect on internal trade and economic stability. Even more, the rate of
economic growth and the distribution of income and wealth in a country are closely related to
export growth.

The concept of trade stability or instability may be based either on a country’s aggregate trade in
comparison with the cost of the world or on a binary country pair comparison. Such binary pairs
may be large depending upon the number of trading allies. Export instabilities have been claimed to
affect economic growth both positively and negatively. Fluctuation in exports earnings introduces
uncertainties in the economy. The other side of the picture is that a greater amount of uncertainty
on export proceeds also brings about risk aversion. People tend to invest more in their own country
and the economy starts improving gradually. But this is not much observed these days.

Export fluctuations, on an average, act as a hindrance to the stability and growth of the under
developed countries. A high degree of export instability may be expected to deter investment on a
number of grounds. It is also expected to raise borrowing costs, because export fluctuations tend to
cause balance of payment complexities. This ultimately leads to low confidence of people in the
process of maintenance of the exchange rate.

Q#2 licensing is often in easy way

Business registration and licensing is an important conduit to creating a thriving and robust
business sector. It enables businesses, particularly small ones, to gain access to funding and to
certain protections by the law. It also helps formalize the economy as registered businesses pay tax
and deliver other important benefits to the economy, like job creation.

It supports the core business by marketing

 For a television show, movie, children’s book or sports franchise, the retail display and proliferation
of licensed products doesn’t only generate product sales, but it also promotes the core property. An
array of toys or apparel tied to a movie, sitting on a store shelf, also helps to promote the movie
itself

The International Finance Corporation (IFC) noted in its Reforming Business Registration report
published in 2013 that: "The private sector, through investment and job creation, plays a crucial
role in a country’s fight against poverty. Where an effective private sector is lacking, business
registration reform has been shown to be one of the essential first steps toward fostering private-
sector growth. The easier, faster, and cheaper the business registration process becomes, the higher
the number of businesses in an economy.

Maintaining control over an original creation.

Licensing represents a way for artists and designers to profit from their creative efforts, while
maintaining control over how they are used. For brand owners (particularly those doing business
in the global marketplace), licensing and registering the brands in multiple markets is a way to
protect the brand from being used by others without authorization.

In addition to giving the licensee the right to use the property, the licensor assumes several
responsibilities that need to be met in order to create a successful licensing program. They include:

 A timely and efficient approval process, so that products can move their way along the development
chain in a timely way.
 Giving guidance (often in the form of a printed or digital style guide) about how the brand,
character, logo or other IP can be portrayed within the product, on packaging, or in advertising and
promotional materials.
 Assisting in marketing activities and, in many cases, helping to sell the brand into retail.

Q#3 Management contracting sales know how

The Up-Front Contracts concept in the Sandler Selling System can be applied directly to
management people. Up-front contracts are the mutually agreed upon expectations between
individuals, established before moving forward in any endeavor. In sales, when you set an up-front
contract with a prospect, both of you have agreed to what will happen next, provided a specific set
of events occurs. The mechanics are more involved, but the concept is that simple.

In sales management, when you and a salesperson have an up-front contract, both of you know
exactly what is supposed to happen next. That way, neither you nor the salesperson is going to be
surprised later on.
 The up-front contract between a manager and an employee affirms that the goals of the company –
as manifested in the manager’s expectations and in the department’s goals – will be met. Up-front
contracts also provide a way for the participating individuals to reach their own goals, with respect
to their own well-being, pay, advancement, or any of the other reinforcements which are
meaningful to them. Up-front contracts are the manner in which each party state to the other: This
is what I expect, and this is what I will give.

Q#4 Joint venture Increase for environment

A joint venture involves two or more businesses pooling their resources and expertise to achieve a
particular goal. The risks and rewards of the enterprise are also shared.

The reasons behind forming a joint venture include business expansion, development of new
products or moving into new markets, particularly overseas.

Your business may have strong potential for growth and you may have innovative ideas and
products. However, a joint venture could give you:

 more resources
 greater capacity
 increased technical expertise
 access to established markets and distribution channels
Entering into a joint venture is a major decision. This guide provides an overview of the main ways
in which you can set up a joint venture, the advantages and disadvantages of doing so, how to
assess if you are ready to commit, what to look for in a joint venture partner and how to make it
work.

JOINT VENTURE - BENEFITS AND RISKS

Businesses of any size can use joint ventures to strengthen long-term relationships or to collaborate
on short-term projects.

A successful joint venture can offer:

 access to new markets and distribution networks

 increased capacity
 sharing of risks and costs with a partner
 access to greater resources, including specialised staff, technology and finance
A joint venture can also be very flexible. For example, a joint venture can have a limited life span
and only cover part of what you do, thus limiting the commitment for both parties and the business'
exposure.

Joint ventures are especially popular with businesses in the transport and travel industries that
operate in different countries.

The risks of joint ventures

 Partnering with another business can be complex. It takes time and effort to build the right
relationship. Problems are likely to arise if:

 the objectives of the venture are not 100 per cent clear and communicated to everyone involved
 the partners have different objectives for the joint venture
 there is an imbalance in levels of expertise, investment or assets brought into the venture by the
different partners
 different cultures and management styles result in poor integration and cooperation

Q#5 Direct Investment Involves ownership

Foreign direct investment (FDI) is an investment made by a company or individual in one country
in business interests in another country, in the form of either establishing business operations or
acquiring business assets in the other country, such as ownership or controlling interest in a
foreign company. Foreign direct investments are distinguished from portfolio investments in which
an investor merely purchases equities of foreign-based companies. The key feature of foreign direct
investment is that it is an investment made that establishes either effective control of, or at least
substantial influence over, the decision making of a foreign business.