Canadian International Matriculation Programme
Sunway College
International Business Fundamentals (BBB4M)
FINAL EXAMINATION
Date: 27 May 2011 (Friday)
Time: 8.30 – 10.30am
Length: 2 hours
Prepared by: Ms Elizabeth Erskine, Ms Shirley Seto & Ms Sumathy Ramasamy
(Please circle your teacher’s name)
Student Name: _____________________________
Period: _______
Please read the following instructions carefully before you begin the examination:
1. This exam paper has 13 printed pages (including the cover page).
2. The examination is worth 30 percent of your final mark.
3. The examination consists of three parts.
PARTS
A
CONTENT
Multiple Choice Questions
MARKS
30
(Knowledge & Understanding)
B
Short Answer
15
(Knowledge & Understanding, Thinking &
Inquiry, Communication & Application)
C
Case Study
15
(Knowledge & Understanding, Thinking &
Inquiry, Communication & Application)
TOTAL
60
4. Part A is to be answered on the MCQ answer sheet provided.
Part B and C are to be answered in the exam booklet.
5. No dictionaries are allowed.
6. Answers must be written in standard English format for an academic audience.
SECTION A: MULTIPLE CHOICE QUESTIONS
(Knowledge/Understanding)
International Business Fundamentals –May 2011
(30 marks)
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SECTION B: SHORT ANSWERS
(Knowledge/Understanding/Communication & Application)
(15 marks)
Choose and answer any three (3) questions. Each question is worth 5 marks.
Your answers should be in complete sentences and in paragraph form. All answers must
be written in the space provided.
1. Describe any THREE supply chain issues that might affect international shipments.
2. Explain any THREE of Hofstede‟s cultural dimensions. Your answer must include
relevant examples.
3. Explain how companies are changing because of global competition. Support your
answer with relevant examples.
4. Describe the THREE components of the „green revolution‟ that will have an impact on
international business.
5. Discuss the criticisms of corporate social responsibility.
6. Identify the problems associated with joint ventures and suggest ways to overcome these
problems.
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SECTION B: Question ________
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SECTION B: Question ________
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SECTION B: Question ________
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SECTION C: CASE STUDY
(15 marks)
(Knowledge and Understanding, Thinking/Inquiry, Communication and Application)
Answer all the questions in paragraph form. Elaborate your answers and provide
evidence/examples when possible.
The chief executive of the German car manufacturer, Volkswagen (VW), Martin
Winterkorn, was speaking at an annual press conference. He said that the days of building
one car for the whole world were „dead and buried‟. For 20 years, the dream of the world‟s
major car manufacturers had been to build a car which could be sold into all national car
markets. The car manufacturer to achieve this would be able to gain a competitive advantage
over its rivals because it would be able to get costs down due to economies of scale in
production. Selling 30 million vehicles a year of one model would have lower costs per unit
than selling 6 million vehicles but in five different models each.
The announcement was made that Volkswagen would be introducing 20 new models
in the next years, including vans and pick-ups. The plan was to sell 8 million cars a year by
2010. With Toyota now the world‟s largest car manufacturing company by sales volume, he
said that he hoped to beat Toyota in sales and profitability, customer satisfaction and quality.
“In the coming years, we will make the VW group the world‟s most international carmaker”,
Winterkorn said.
It could only happen if customers were offered vehicles that were appropriate to their
needs, which included affordability. “Our customers in China or India expect us, as a global
player, to offer entirely different solutions than we do in the U.S. or Western Europe”, he said.
VW‟s desire to beat Toyota is made more difficult by its extremely weak position in
the key U.S. market. It is weighing whether to construct a new factory there to build a midsized sedan. A decision on this would be made in the summer, executives said.
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Q1. What benefits do economies of scale have for multinational car manufacturers and
consumers? (4 marks)
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Q2. Explain why a customer in India and China might have to be offered an „entirely different
solution‟ in terms of model of car than a customer in the UK and U.S.? (5 marks)
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Q3. Volkswagen wants to overtake Toyota as the world‟s largest car manufacturer. Explain
four (4) ways in which it could gain a competitive advantage over Toyota. (6 marks)
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