IILM GRADUATE SCHOOL OF MANAGEMENT

POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT (2005-07)

End-Term Examination, Trimester-V, December 2006
Course Code-05-PGIE-259 Global Marketing of Services

Thursday, 28th December 2006, Duration: 2 hrs (9=30 AM to 11=30 AM)

Maximum Marks: 60
INSTRUCTIONS
1. Part-A is compulsory and carries 12 marks.
2. Attempt ANY FOUR Questions from Part-B.
3. All Questions in Part-B carry equal marks (12 marks each).
4. Answers should be brief and to the point.
________________________________________________________________

Part-A:

1. Indicate whether the following Statements are TRUE or FALSE (no

explanation is necessary): [12 marks]

1.1. FDI is allowed up to 100 percent of equity in mutual funds subject to minimum
capital requirements.
1.2. FDI is allowed in 22 activities of the Non-Banking Financial Corporations (NBFCs)
subject to minimum capital requirements.
1.3. New banks are allowed to open 25 percent of their branches in rural/semi urban
areas.
1.4. India allows FDI in lottery business, gambling and betting.

1.5. Rupee is almost fully convertible on capital account for non-residents.

1.6. India is the second fastest large economy after China in the world.
1.7. Bank deposit rates and lending rates are determined by the Reserve Bank of India.
1.8. India allows FDI in all activities of agriculture and plantations.
1.9. India is the fourth largest economy in terms of PPP adjusted GDP after USA, China
and Japan.
1.10. India allows foreign banks to set up 25 new branches per annum.
1.11. India has the third largest pool of technical manpower in the world.
1.12. India has the lowest percentage of working population in the world.
1.13. FIIs/ NRIs/ OCBs are not allowed to buy government securities (G-secs).

1.14. Foreign Institutional Investors (FIIs) are allowed to buy shares in Indian stock
markets subject to individual limit of 5 percent of total equity in a firm.
1.15. Non-Resident Indians (NRIs) are allowed to buy shares in Indian stock markets
subject to individual limit of 10 percent of total equity in a firm.
1.16. Overseas Corporate Bodies (OCBs) are allowed to buy shares in Indian stock
markets subject to individual limit of 5 percent of total equity in a firm.

1
1.17. Foreign Institutional Investors (FIIs), Non-Resident Indians (NRIs) and Overseas
Corporate Bodies (OCBs) are allowed to buy shares in Indian stock markets subject
to overall limit of 49 percent of total equity in a firm.
1.18. Foreign investment up to 74 percent of total equity is permitted in private banks.
1.19. Foreign investment up to 74 percent of total equity is permitted in banks doing
business only in insurance services.
1.20. Foreign investment up to 74 percent of total equity is permitted in airlines.
1.21. Foreign investment up to 74 percent of total equity is permitted in mobile phones.
1.22. Foreign investment up to 26 percent of total equity is permitted in insurance
companies.
1.23. Presently 35 foreign banks are operating in India.
1.24. The statutory cash reserve ratio (CRR) for commercial banks presently stands at 6
percent.

2.3
_______________________________________________________________________

Part-B- Attempt Any Four Questions

2. [4 X 3 = 12 Marks]

(a) Discuss positive and negative impact of services production and trade on overall
economic growth.
(b) Would you agree with the view that globalization of trade in services has led to
significant increase in growth of developing countries?
(c) What could be the adverse impact of services trade on the economies of the
developing countries?

3. [4 x 3 = 12 Marks]
(a) Indicate the sectors where FDI is not allowed in India.
(b) Discuss policies, strategy and regulatory regime for foreign investment of India.
(c) What has been the impact of FDI on the Indian economy?

4. [4 X 3 = 12 Marks]
(a) Discuss the strengths of the Indian economy for attracting FDI.
(b) Discuss the constraints of the Indian economy for attracting FDI.
(c) Discuss special problems for attracting FDI in agriculture and plantation,
minerals including oil and gas, power generation, water supply and sanitation.

5. [3 X 4 = 12 Marks]
(a) Discuss different modes for outward investment.
(b) Which one is the dominant mode for Indian overseas investment, and what are
the main reasons for that?

2
(c) Indicate the major destinations for Indian overseas investment.
(d) Indicate the major sectors for Indian overseas investment.

3
6. [8+4 = 12 Marks]
(a) Discuss the general host country policies encouraging Indian outward
investment.
(b) Discuss the important home country policies encouraging Indian outward
investment.

7. [3 X 4 = 12 Marks]
(a) Discuss the scope and definitions of financial services under WTO-GATS.
(b) Discuss the GATS views on domestic regulations on financial services.
(c) Discuss the commitments of India for financial services under WTO-GATS.
(d) What would be your suggestions for further liberalisation of services trade of
India?

8. [4 X 3 = 12 Marks]
(a) What do you mean by globalisation?
(b) What has been the impact of globalisation on prices and quality of goods and
services?
(c) What has been the impact of WTO-GATS on globalisation and global trade of
goods and services?

_______________________________________________________________________
_