INTERNATIONAL MANAGEMENT Question 1 (10 marks) Explain the consequences of globalisation on the convergence of consumption patterns and the global presence of certain firms. Question 2 (20 marks) Multinationals (MNEs) are firms headquartered in one country with operations in another country. Through their globalised production systems, their subsidiaries and extended value chains represent an important share of the private sector in many developing and industrialised economies. 2.1 Analyse the nature and characteristics of MNEs. (10) 2.2 Demonstrate how an MNE can use the UPPSALA model to incrementally enter global markets. (10) Question 3 (15 marks) Read the abstract below and answer the question that follows: The role of Civil Societies “I think it is clear that there is a new diplomacy, where NGOs, peoples from across nations, international organisations, the Red Cross, and governments come together to pursue an objective. When we do – and we are determined, as has been proven in the land mines issues and the International Criminal Court – there is nothing we can take on that we cannot succeed in, and this partnership ... is a powerful partnership for the future”. Kofi Annan former UN secretary-general, 1999 “In a globalising world, preventing violent conflict and building sustainable peace requires complex strategies. These need to address structural causes of conflict, many of which may be inherent in the global system. To do so effectively requires cooperation between civil society actors at the local, national, regional and global levels and with governments, intergovernmental organisations and, in some cases, businesses. CSO-led processes are often focused on enabling ordinary people to articulate what they really need and then working to find a common ground from which they can work to establish The role of Civil Societies peaceful co-existence. Instead of the use of force, civil society actors generally rely on their creativity by stimulating a new sense of what is possible and how it can be achieved. This capacity is rooted, ultimately, in a sense of agency: the ability to act together with others to change the world. They often combine formal legal strategies with approaches that aim to foster public awareness and the transformation of conflict attitudes and relationships. CSOs can bear witness to violations and undermine the moral authority and legitimacy of abusers. The very act of public disclosure and/or denouncing the situation can make the truth evident in ways that are very difficult to ignore and may empower people to take action to change the situation. This exposure sometimes stimulates conditions that lead to the collapse of regimes over the long term. They can also dissuade the wider public from accepting or anticipating in acts that enable abuse and oppression. Civil society groups can analyse the situation, formulate recommendations, develop policy options and engage in policy dialogue to address conflicts. They can also mobilise advocacy campaigns to generate political will among decision-makers and implement strategies to achieve the desired results. Thus civil society efforts at raising public awareness about a particular set of problems are intertwined with efforts to motivate political decision-makers to take action to address them”. https://www.southernafricalitigationcentre.org/wp-content/uploads/2017/08/The-Role-of-CivilSociety.pdf (Accessed 30 August 2024). Assess the role and impact of civil society and provide examples of international role-players in this regard. Question 4 (20 marks) Read the abstract below and answer the question that follows. Trade Barriers Tariffs & NTB’s U.S. companies have cited protective tariffs as a barrier to trade in South Africa. Nontariff barriers (NTBs) to trade include port congestion, technical standards, customs valuation above invoice prices, theft of goods, import permits, antidumping measures, foreign worker visa permitting. Violations of intellectual property rights (IPR), an inefficient bureaucracy, and excessive regulation, and requirements to localize supply chains. Chicken restrictions: In 2015, South Africa agreed to a Tariff-Rate Quota (TRQ) with the United States to allow the import of 65,000 tons per year of bone-in chicken leg quarters free of the anti-dumping duties. Half of the quota is reserved for historically disadvantaged importers (HDIs). All imports of U.S. chicken require a health certificate from the Department of Agriculture, Forestry, and Fisheries, and bone-in leg quarters require a quota permit from the International Trade Administration Commission (ITAC). South Africa increased the tariff from 37 percent to 62 percent on bone-in chicken portions. It also increased tariffs on frozen boneless chicken cuts from 12 percent to 42 percent. The increased duty will apply to poultry imports from all countries excluding European Union and Southern African Development Community members. In 2019, the South African government, poultry industry, unions, and importers signed a Poultry Sector Master Plan (PMP) and created a PMP Council to monitor its implementation. https://www.trade.gov/country-commercial-guides/south-africa-trade-barriers (published 30-012024) (Accessed 30 August, 2024) Assess the common reasons for trade barriers that impact on international business. Question 5 (10 marks) Compare the solutions for the various parent-subsidiary relationships that exist when it comes to financial planning.
