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Bba 402: International Business Management And Organization Question Paper

Bba 402: International Business Management And Organization

Course:Bachelor Of Business Administration In Management

Institution: Kenyatta University question papers

Exam Year:2009

INSTRUCTIONS:
Answer ALL questions from Section I, plus any other ONE from Section II
SECTION I
1. One if the areas of operations where participants in International business
encounter great risk is in their foreign exchange operations.
a) Explain any three types of risks that they could encounter in their foreign
exchange transactions. [15 marks]
b) Highlight five ways in which the foreign exchange exposure could be
mitigated. [15 marks]
2. A company that does not want to use other forms of Direct Foreign Investment
(F.D.I) can choose to license its operating know- how to a foreign company.
a) Explain the reasons why licensing production may be preferred to
acquisition of foreign company in order to carry out foreign operations.
[10 marks]
b) Highlight the benefits of starting the Greenfield Operations instead of
licensing operations. [10 marks]
Page 2 of 2
SECTION II
3. Most host countries that receive FDI are less developed countries.
a) Highlight the Policies that most of these countries adopt in order to attract
foreign investment.
b) Apart from considering the promise made to potential foreign investors by
potential host countries, explain the precautions that a potential investor
should take before making a direct investment. [10 marks]
4. Explain the circumstances that led to the Bretton Woods conferences of 1944.
What were its main resolutions? [ 20 marks]
5. Explain the Trade policies that were encouraged by the mercantilist traders. How
was the balance in trade attained under this system during the process of selfadjustment?
[20 marks]

Bba 402: International Business Management And Organization Question Paper

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