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Bba 402: Management Of International Business And Organization (Open Learning) Question Paper

Bba 402: Management Of International Business And Organization (Open Learning) 

Course:Bachelor Of Business Administration In Management

Institution: Kenyatta University question papers

Exam Year:2009



INSTRUCTIONS
Answer all questions from Section I
Plus any one Question from Section II
SECTION I
Q.1 Following the instability in the International financial transactions / system before
and after the second world war the IMF was set up based on the Articles of
Agreement of the fund in 1944.
a) Explain the steps that member states of the IMF were supposed to take in
order to maintain exchange stability between the currencies of member states.
(15 marks)
b) Explain the procedure that was to be followed by countries that were
experiencing temporary deficits in their balance of payments in drawing on
the fund. (15 marks)
Page 2 of 2
Q.2 It is sometimes said that the reasons why trade takes place between different regions
of a country are the same as the reasons why trade takes place between different
countries.
a) Explain these reasons. (10 marks)
b) Explain the reasons why relative prices in the home country may differ from
relative prices in foreign countries. (10 marks)
SECTION II
Q. 3 Explain the ways in which an importer who expects currency movements to affect
him negatively can use to protect himself. (20 marks)
Q.4 a) Explain the ways that a country can use to encourage growth in its expert
trade. (10 marks)
b) Highlight the factors that hinder the growth of international business.
(10 marks)
Q.5 Explain the benefits that could accrue to a company that takes up a policy with the
Export Credits Guarantee Agency of COMESA. In which ways does the services
provided by ECA differ from the service provided by commercial insurance firms?
(20 marks






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