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International Business Question Paper

International Business

Course:Bachelor Of Business Administration (Business Administration)

Institution: Kabarak University question papers

Exam Year:2009

SECTION A
Question 1
a) Distinguish between international business and international trade (5marks)
b) Define the term tariff and explain the various types of tariffs(5marks)
QUESTION 2
a) International business has recently grown as an important field of study. Using examples, discuss the factors contributing to this development.(6marks)
b) What do you understand by the term dumping.?Give an example to illustrate.(4marks)

QUESTION 3
a) Afrinet ltd local textile company has decided that gong international will be a good idea for the future of the firm what criteria should Afrinet ltd managers use to evaluate the best market to enter (6marks)
b) Distinguish between ethnocentric and polycentric management used by multinationals corporation (MNCS)(4marks)
QUESTION 4
a) Cultural differences are possible hindrances to international business .discuss the major cultural elements that an international business executive must analyze in a foreign market.(5marks)
b) Write brief notes on one of the following international business concepts
i. Theory of comparative advantage
ii. Balance of payment (5marks)

SECTION B
Question 5
a) Describe the three types of exchange rates systems. Which system does the Kenyan central bank use (12marks)
b) Mnet, a local textile companies with operations I n Kenya wants to go international however the company is likely to face various restrictions from the host countries. Discuss the reasons behind such restrictions and barriers by the host country.(8marks)

Question 6
a) Sabuni services ltd, a local detergent manufacturing company, would like to open a subsidiary in Zimbabwe. However the management would want to assured of the country’s political and economic situation before making this crucial decision. They have contacted you in an effort to analyze the political and economic situation of the host country (Zimbabwe)

Required
Advise the management on various factors that they need to analyze before they go to Zimbabwe (14marks)
b) Kenya has specialized in exporting of agricultural products and importing of capital goods .what theory of international business can explain this phenomenon? Explain (6marks)

QUESTION 7
a) Discuss the advantages and disadvantages of a MNC employing host country nationals to manage its subsidiary in the host country (10marks)
b) With the reference to COMESA, describe the advantages a country enjoys for being a member of economic integration (7marks)
c) What do you understand by the term rule of origin? (3marks)

International Business Question Paper

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