Canadian International Matriculation
Programme
Sunway University College
International Business Fundamentals
(BBB4M)
FINAL EXAMINATION
Date: 26 May 2009 (Tuesday)
Time: 2.30-4.30 pm
Length: 2 hours
Lecturers: Ms Sumathy Ramasamy, Ms Nancy Sutter and Mr Derek Towler
Please read the following instructions carefully before you begin the examination:
1. This exam paper has nine (9) printed pages (including cover page).
2. The examination is worth 30 % of your final mark.
3. The examination consists of four parts: PART A, B, C and D.
PARTS
A
B
C
D
CONTENT
Multiple Choice Questions
(Knowledge/Understanding)
Short Answer
(Knowledge/Communication)
Essay
(Critical thinking/
Communication)
Case Study Analysis
(Critical thinking/
Communication)
TOTAL
MARKS
20
15
20
20
75
4. Answer part A on the MCQ sheet provided. Parts B, C and D should be answered in the
answer booklet provided. Please hand in the MCQ sheet, answer booklet and exam paper
before leaving the classroom. Ensure that you write your name on the answer sheet and the
answer booklet.
5. Answers must be written in standard English format for an academic audience.
Only paper dictionaries are allowed in the exam. All answers must be written in black or blue
pen only.
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SECTION A: MULTIPLE CHOICE QUESTIONS
20 marks
(Knowledge & Understanding)
2
SECTION B: SHORT ANSWER
(Knowledge & Understanding, Communication and Application)
15 marks
Choose and answer any three (3) questions. Your answers should be in complete
sentences and in paragraph form. All answers must be written in the answer
booklet provided.
1.
Provide three (3) examples of how a country’s infrastructure can be either an asset
or an obstacle to its international trade.
2.
What is electronic data interchange (EDI)? Explain four (4) advantages of using
EDI.
3.
List and briefly describe three advantages that member nations of the World
Trade Organization (WTO) enjoy when trading with each other.
4.
Explain with examples, two advantages and two disadvantages for a nation as it
increases its interdependence with other nations?
5.
Define competitive advantage and describe factors affecting the competitiveness
of a country.
SECTION C: ESSAY
(Thinking, Communication and Application)
20 marks
Choose one (1) of the three questions below, and write a five paragraph essay in the
answer booklet provided.
1. Explain the term “corporate social responsibility”. Using relevant examples,
assess the effectiveness of MNCs in carrying out their corporate social
responsibilities.
2. Provide reasons why it can be difficult for managers of international firms to
address ethical issues. Use examples to support your analysis.
3. Politics plays a major role in international trade. Describe and analyze any three
(3) current events which could give rise to political risks to MNCs.
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SECTION D: CASE STUDY
20 marks
(Knowledge and Understanding, Thinking/Inquiry, Communication and Application)
In 1990, Vietnam’s communist government announced that non-Vietnamese manufacturers
were welcome to set up shop in the Southeast Asian country. South Korea’s Daewoo quickly
established itself as the number-one investor in Vietnam. Other well-known companies,
including Toshiba, Peugeot, and British Petroleum, also took Hanoi up on its invitation.
Vietnam’s location in the heart of Asia and the presence of a literate, low-wage workforce are
powerful magnets for international companies.
Today there are many challenges for investors in Vietnam. The population of around 83
million is very poor, with an annual per capita income of only about $2,500. The
infrastructure is undeveloped: only 25 percent of roads are paved; electricity sources are
somewhat unreliable; there is roughly one telephone per 100 people; and the banking system
is undeveloped. And although Vietnam holds tremendous long-term potential, it may be two
decades before Vietnam reaches the level of economic development found even in Thailand
today.
In addition, the Communist Party of Vietnam is struggling to adapt to the principles of a
market economy, and the layers of bureaucracy built up over decades of communist rule slow
the pace of change. In one incident Hanoi embarked on a “social evils crackdown: that
included pulling down or painting over any sign or billboard printed in a language other than
Vietnamese. And laws concerning taxes and foreign exchange are constantly changed.
Says Do Duc Dinh of the Institute on the World Economy, “There is a huge unofficial
economy. For most people, we can live only 5 days or 10 days a month on our salary. But
people build houses. Where does the money come from? Even in government ministries,
there are two sets of books – one for the official money and one for unofficial.” Cross-border
smuggling from Thailand still depresses the legitimate sales of products produced locally.
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But in late 2001, Vietnam and the United States signed a trade deal that gave Vietnam normal
trade status with the United States. Meanwhile, U.S. companies are gaining continually
greater access to Vietnam. As a result, Vietnam’s export activity (worth about $20 billion in
2003) is booming, due largely to its cheap, efficient workforce and growing foreign
investment. Vietnam’s exports to the United States doubled in 2002, and again in 2003. The
diversified nature of the country’s exports – including commodities, agricultural products,
and manufactures – means it is somewhat immune to large swings in the price of any one
export.
Aside from China, Vietnam has become Asia’s best-performing economy. For a decade to
2003, Vietnam grew 7.4 percent a year and shows no sign of slowing down. The nation’s
trade-driven economic boom has lifted many Vietnamese out of poverty. Whereas the World
Bank labeled as much as 58 percent of the population poor in 1993, that number had fallen to
29 percent by 2003.
Answer the following questions in the answer booklet provided.
1. Assess both the challenges and opportunities Vietnam presents to foreign
businesses. (8 marks)
2. What problems might a business encounter when trying to apply the marketing
mix to their products in Vietnam? Justify your answer. (6 marks)
3. Identify the political risks involved with operating in Vietnam and explain how
they would affect foreign business operations. (6 marks)
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