UNIVERSITY EXAMINATIONS: 2020/2021

SCHOOL OF BUSINESS & PUBLIC MANAGEMENT

ORDINARY EXAMINATION FOR BACHELOR OF
COMMERCE

BAM 2314: INTERNATIONAL BUSINESS STRATEGY

DATE: APRIL, 2021 TIME: 6 HRS

INSTRUCTIONS: Answer all questions

QUESTION ONE
Transamco Co Ltd is a Nigerian based company that exports wine to Zambia. It has the ability to
produce wine at a minimum cost as compared to other products that the company produces for
local use. However, the Nigerian government has set some restrictions to promote local use of
some of the products. This strategy has not put the company at a competitive position in the
international market.
Transamco is planning to design a new strategy that may create a better ground for profitable
operations and business sustainability.
a) Explain with examples the international business theory that is guiding the present
business strategy and outline the reasons why the approach should change (10 mks)
b) Discuss the theory of absolute advantage while outlining the assumptions that guided the
proponents of the theory (10 mks)

QUESTION TWO
Discuss ways in which a company may apply Michael Porter’s competitive strategy model in
evaluating international business environment (10 mks)

QUESTION THREE
Explain how globalization has influenced strategies used by organizations to operate in
international markets (10 mks)
QUESTION FOUR
Discuss why most international businesses prefer using indirect business entry strategies when
entering a market for the first time (10 mks)