International Business Management

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TRIMESTER 2 2021 FINAL EXAMINATION
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STUDENT NAME


SUBJECT NAME:International Business Management
SUBJECT CODE:BBM361
TIME ALLOWED:2 hours
PERMITTED MATERIALS:
* This is an Open Book exam.
INSTRUCTIONS FOR STUDENTS:
* You do not require a separate answer booklet. Please type your responses in the space provided.
* Type your full name and ID at the top of this page.
* There are six questions in this exam. Answer any FOUR only.
* Each question is worth 15 marks.
* Total marks is 60.
* Total weighting is 60%.
There are six questions in this exam. Answer any four questions. Each question is worth 15 marks. Total 60 marks.
Question 1
Robert Redford is the Marketing Manager at a company that makes and sells high-quality prefabricated houses. He believes there is little difference between his home-country market and foreign markets, and that he can use the same methods for selling in Asia or Latin America as he does in his home country. Explain to Robert the differences between domestic and international business. Explain the risks and other differences that Robert's company will likely encounter if it expands abroad. (15 marks)
[Answer here]
Domestic business is one that is conducted within the geographical boundaries of a single country. For such a business, the capital investment involved is relatively less compared to international businesses. Restrictions that are set for such businesses are few, and the business is not directly impacted by changes in the global markets. Also, domestic businesses happen to deal with a single group of customers. The nature of the customers is not that much different, and a business does not have to deal with varying natures and needs of clients.
An international business, on the other hand, is one that operates in several countries that could be in different regions of the world. Such a business requires large sums of capital to set up and run because of different countries that it operates in. With regards to restrictions, international businesses tend to encounter more restrictions from both host countries and the regional business agreements and laws. Furthermore, international businesses tend to be directly impacted by changes in the international markets. Finally, it is also greatly difficult to operate an international business because they deal with a heterogenous group of customers. Their customers have different needs, tastes, and preferences. Therefore, a business has to transform itself and adopt different strategies to be able to succeed in all the markets where it is operational.
Robert's company will likely encounter cultural differences. Different countries have different cultures. So, Robert's company will have to deal with differences in customers' behavior, and adjust to the same.
The company will also encounter different and new restrictions that could strain its operations.
Language barrier will also present challenges to the company. The company must speak the language of the host countries. Therefore, major adjustments and hiring of the locals will need to happen regardless of the differences in labor cultures.
The political differences and atmospheres and their...