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International Business Examination - May/June 2011, Exams of Business Management and Analysis

An old university examination paper for the course ecm4210 - international business: opportunities and risks. It includes six questions covering topics such as foreign exchange exposure, modes of entry for international business, cultural dimensions in international business, risks involved in expanding into foreign markets, conflicts between trading companies, and methods of making payments in international business. The document also includes information about the exam duration, number of questions to be answered, and marks distribution.

Typology: Exams

2011/2012

Uploaded on 12/06/2012

kasuri
kasuri 🇮🇳

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ARHOLIADAU EXAMINATIONS
Mai/Mehefin 2011 May/June 2011
ECM4210 INTERNATIONAL BUSINESS: OPPORTUNITIES AND RISKS
Time Allowed: TWO Hours
Answer TWO Questions
1. Critically analyse the importance of foreign exchange exposure from an international
business perspective. Explain the difference between futures and forward contracts
and discuss how you would employ forward contracts to manage foreign exchange
exposure for your firm.
(50 marks)
2. Discuss the different modes of entry for an international business entering a foreign
market. (20 marks) Discuss the pros and cons of each of these different methods. (30
marks) (50 marks)
3. Discuss the main elements of Hofstede’s cultural dimensions framework and analyse
its usefulness for comparing cultural similarities and differences in international
business. (50 marks)
TURN OVER
pf2

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ARHOLIADAU EXAMINATIONS

Mai/Mehefin 2011 May/June 2011

ECM4210 – INTERNATIONAL BUSINESS: OPPORTUNITIES AND RISKS

Time Allowed: TWO Hours

Answer TWO Questions

  1. Critically analyse the importance of foreign exchange exposure from an international business perspective. Explain the difference between futures and forward contracts and discuss how you would employ forward contracts to manage foreign exchange exposure for your firm. (50 marks)
  2. Discuss the different modes of entry for an international business entering a foreign market. (20 marks) Discuss the pros and cons of each of these different methods. ( marks) (50 marks)
  3. Discuss the main elements of Hofstede’s cultural dimensions framework and analyse its usefulness for comparing cultural similarities and differences in international business. (50 marks)

TURN OVER

  1. Evaluate the potential risks involved for a company that has decided to expand into foreign markets. (25marks) Explain what is meant by risk management process and the different aspects associated with it. (25 marks) (50 marks)
  2. Explain why conflicts arise between companies that trade with one another across frontiers despite the existence of contracts. (25 marks) In what ways can companies seek redress when economic relationships break down? (25 marks) (50 marks)
  3. Outline the principle methods by which companies can make/receive payments in international business. Discuss the mechanism of Letter of Credit and explain how this minimises the risk of non-payment. (50 marks)

END OF PAPER