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Bbe 510: Global Business Question Paper

Bbe 510: Global Business

Course:Bachelor Of Commerce

Institution: Kenyatta University question papers

Exam Year:2011

DATE: Thursday 1st November 2011 TIME: 5.30 p.m. – 8.30 p.m.

INSTRUCTIONS:

Answer Question ONE and any other THREE Questions
Q.1) (Compulsory: 20 Marks)
KENTEX is a Kenyan company which has been a major player in the international
business for some years. The company manufactures and sells textiles. A study revealed
the following concerning KENTEX.
(i)
The company’s foreign business is currently handled by an export
Department within its structure.

(ii)
In the past few years the company has set up contractual arrangements in various
parts of the world to produce and sell the company’s textiles.
Required:
(a) Illustrate the organizational structure most appropriate for KENTEX in order to
effectively control its foreign business interests.

(6 marks)
(b) Explain the circumstances when such a structure is most appropriate (6 marks)
(c) Explain the circumstances when the export department structure is most
appropriate, highlighting its strengths and weaknesses.

(8 marks)
Page 1 of 2

Q.2) (15 marks)

Explain each of the following concepts, highlighting the foreign market entry

strategies that would be most appropriate in each case for a firm faced with such

advantages.

(a) Firm specific competition

(7 marks)
(b) Location specific competitive advantage

(8 marks)

Q.3) (15 marks)

Nationalism remains a big challenge to multinational firms in foreign markets.

Explain any five strategies you would use to counter the challenge.
(15 marks)

Q.4) (15 marks)

(a)
What is meant by globalization of business.

(2 marks)

(b)
Forces of globalization are the reasons for which firms globalize

or expand internationally. Briefly describe any two reactive reasons. (4 marks)
(c) Discuss the three major approaches to locus of decision-making
and control in international business.

(9 marks)

Q.5) (15 marks)

Explain five economic factors that international firms use to gauge investment

climate in a country.

(15 marks)

Page 2 of 2

Bbe 510: Global Business Question Paper

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