LINGNAN UNIVERSITY SECOND TERM EXAMINATION, 2014-2015 BUS2108 : GLOBAL BUSINESS ENVIRONMENT TIME ALLOWED: TWO HOURS INSTRUCTIONS: - There are three sections in this paper. ‘You must answer a compulsory question set for Section A. ‘You are required to select and answer one question from Section B. ‘You are required to select and answer one question from Section C. Answer THREE questions altogether. Answer all parts of each question. = This paper carries 100 marks. - Marks allocated to parts of questions are indicated in brackets. = Give labeled diagrams where these will make the answer clearer, = You are reminded of the necessity for clear and orderly presentation in your answers. BUS108/BUS2108 Global Business Environment Second Term Examination 2014-15Section A— You must Answer All Parts of Question 1 in this section (Total 40 marks) Question 1 (@) Canadian footwear manufacturers have complained to their government that they are quickly being put out of business by cheaper shoe imports coming from China. If the Canadian government agreed to provide protection to their domestic manufacturers, what options would the Government have in terms of restricting Chinese imports? Which method would you recommend? Why? (25 marks) (b) One way in which a country can increase the amount it exports is by devaluing its own currency. This makes the goods it exports cheaper in other countries. Within the past year there is evidence that several countries (e.g. Japan) have resorted to following this strategy. Who wins and who loses from such policies and what dangers does following such a strategy present? (15 marks) ‘BUS108/BUS2108 Global Business Environment ‘Second Term Examination 2014-15Section B— Answer either Question 2 OR Question 3 (Total 30 marks) Question 2 Your company manufactures a new tablet computer that has more features than those currently ‘on the market and is very competitively priced. Competitors however are catching up fast so you ‘want to make as much profit from this new product while you can. However you are having great difficulty finding distributors for your product in the United States and Europe, both wholesalers and retailers are reluctant to buy ftom a Hong Kong company they have never heard of before. What steps could you take to ensure that the new product is widely available to consumers in these important markets? Talk specifically about the task of attracting and motivating capable distributors. (30 marks) Question 3 (2) What is meant by the terms, "first-mover advantages?" and “pioneering costs?” provide examples of each. (15 marks) (b) Describe a joint venture and give an example of one. What are the advantages and disadvantages of using the joint venture strategy? (15 marks) ‘BUS108/BUS2108 Global Business Environment ‘Second Term Examination 2014-15Section C - Answer either Question 4 OR Question 5 (Total 30 marks) Question 4 (@) Should a host government's attitude towards incoming Foreign Direct Investment be @ ‘major consideration when making a FDI decision? Why? (15 marks) (b) What are the primary impediments (barriers) to regional economic integration? Are these impediments difficult to overcome? Explain your answer. (15 marks) Question 5 (a) What is meant by the term cultural distance? How might the concept of cultural distance influence a firm’s investment location decisions? (15 marks) (b) Identify and discuss any three ethical issues which impact multinational businesses, provide relevant examples where appropriate, (15 marks) End-of-Paper BUS!08/BUS2108 Global Business Environment Second Term Examination 2014-15