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International Business(Buss 441) Question Paper

International Business(Buss 441)

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2010

TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions

Question 1
a) Distinguish between international trade and international business. (3 marks)
b) Kenyacom Ltd a local communication company has decided that going international will be a good idea for the future of the firm.
i) What reasons could have prompted Kenyacom managers to make this decision? (10 marks) ii) Prepare a memorandum to the management of Kenyacom advising them on what criteria they can use to identify the best markets to enter? (10 marks)
c) What restrictions is the company likely to face from the host countries? (7 marks)

Question 2
XYZ is a local dairy firm in Kenya. The Board of Directors has concluded that the company has excess capacity hence there is need to expand its market outside the country. You have been appointed as a consultant to advise the company on what method/mode to use when entering the foreign market.
Required:
Prepare a report, suggesting to the management of XYZ the best options. Give reasons for your options. (20 marks)

Question 3
a) Since the promulgation of the Kenyan constitution, the Kenyan shilling has been growing stronger and stronger. As a result, players in various sectors and participants in international business have held different opinions as to whether the trend is favourable or not. Some have argued for government intervention to weaken the shilling against other currencies e.g. the dollar and others are against any intervention. Discuss your opinion regarding this statement in line with different exchange rate systems and clearly classify the Kenyan system. (10 marks)
b) Using a multinational company of your choice, discuss the impact of political-legal environment factors on its management. (10 marks)

Question 4
a) Discuss the application of the following international business theories in the Kenyan context.
i) Theory of comparative advantage
ii) Theory of international product-life-cycle (10 marks)
b) State four benefits of economic integration and carefully discuss the six levels of economic integration. (10 marks)

Question 5
a) Explain the factors that determine a firm’s international competitiveness. (5 marks)
b) Briefly explain both the positive and negative impact of the presence of MNEs to host countries (12 marks)
c) Differentiate between ethnocentric and polycentric management orientations (3 marks)

International Business(Buss 441) Question Paper

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