FINANCE
HUMAN RESOURCE MANAGEMENT
INTERNATIONAL BUSINESS
MANAGEMENT
fINAL Examination
JANUARY 2014
Course : BM 3309 (International Business) Time: (2 hours)
Lecturer : Mr. Rosli Musa Date :
INSTRUCTIONS TO CANDIDATES:
The examination paper consists of two sections:
I. Section A: Short Essay Questions (50 Marks)
Answer any TWO (2) questions in the Answer Booklet provided
II. Section B: Case Scenario (50 Marks)
Answer All questions in the Answer Booklet provided
This exam paper consists of TWO (2) printed pages
(excluding front cover)
DO NOT OPEN THIS BOOKLET UNTIL YOU ARE TOLD TO DO SO
SECTION A: SHORT ESSAY QUESTIONS (50 MARKS)
Instructions: Answer any TWO (2) questions
1
In 1966, Raymond Vernon published a model that described internationalisation patterns of organisations. This model is called International Product Life Cycle. From your understanding, briefly explain this International Product Life Cycle theory and its connection with FDI. From the argument given, state how useful the International Product Life Cycle theory and Knickerbocker's theory of horizontal FDI are to business.
(25 marks)
2
(a)
Briefly describe the disadvantages of economic integration for international businesses. How can firms protect themselves from these threats?
(15 Marks)
(b)
Firms going international for business expansion will face stiff competitive pressures. Identify the types of competitive pressures when firms competing in the global marketplace and how they respond to these pressures.
(10 Marks)
3
(a)
Imagine that you are meeting with your superiors to discuss entering a foreign market. Your boss has asked you to analyse a joint venture prospect. Why might you tell your boss that the joint venture is not a good idea?
(10 marks)
(b)
In international business, export is one of the methods of entry to a new country. This is the simplest method of all the modes of entry, but why do so many