MINISTRY OF EDUCATION AND TRAINING FINAL EXAM NATIONAL ECONOMICS UNIVERSITY International Business (CBA300) Mode: .Fultime ........ Intake: ..61..... SCHOOL OF ADVACNED EDUCATIONAL PROGRAMS Location: A2 .............. Date: 29/11/2021... Shift: 2..... Time allowed: 75 minutes EXAM: 1 This exam includes 2 parts, part A and part B. Note that students have to answer totaly ONLY 5 questions, including 4 questions in the Part A and 1 question in the Part B. Part A: Please answer ONLY 4 of 6 questions below. Question A1 (20 points): How have changes in technology contributed to the globalization of market and production? Question A2 (20 points): A democratic political system is an essential condition for sustained economic progress. Discuss. Question A3 (20 points): Outline why culture of a country might influence the costs of doing business in that country. Question A4 (20 points): Briefly differentiate between absolute and comparative advantages. Question A5 (20 points): Explain why high transportation costs or tariffs imposed on import help explain why many firms prefer FDI over expoerting? Question A6 (20 points): If you choose localization strategy what does structure most make sense and why? Part B: Please answer ONLY 1 of 2 questions below. Question B1 (20 points): You are the CEO of a company thast has to choose betwwen making a $100 million investment in Russia or Poland. Geven you’re your choise is driven by risk considerations, which investment would you favor and why? Question B2 (20 points): Your are a senior manager in a US automobile company considering investing in production facilities in China, Russia, or Germany. These facilities will serve local market demand. Which countriesseems the most attractive target for FDI? Why? -------------------------------------------Note: This is an open textbook exam.
