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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 anyone other Question from section II
SECTION 1
Q 1. Using suitable examples explain how each of the following principles is used to
explain the basis of international trade and the gains from trader. Outline the
weaknesses of each of the principles.
a)
b)
The principle of absolute advantage.
The principle of comparative advantage.
[15marks]
[15marks]
Q2. One of the ways in which a company can participate in international business is
through Foreign Direct Investment (FDI).
a) Explain the benefits that would accrue to the company participating in
such business. [IOmarks]
b) Explain the ways in which the FDI host country would benefit from such
., business. [10marks]
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Page 1 of2
SECTION It
,,
Q3. To reduce the risks associated with the international business operations, business
firms operating from COMESA member states are advised to insure their exports
with the COMESA Export Credits Agency.
a) Explain the types of risks that the agency provides a guarantee against.
[15marks]
b) Briefly explain the reasons why the agency does not provide a 100% .
cover. [ IOmarks]
Q4. One way of expanding International business by countries in a given region is
through formation of a regional economic integration.
a) Explain the benefits that could accrue to firms that trade under such
arrangement. [14marks]
b) Explain the reasons why some of these arrangements fail. [6marks]
Q5. Explain the reasons why each of the following Bretton Woods Institutions were
established.
a) The International Development Association (IDA)
b) The World Bank. [20mark

Bba 402: International Business Management And Organization Question Paper

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