Ministry of Education and Training FINAL EXAM

NATIONAL ECONOMICS UNIVERSITY International Business

School of Trade and International Economics
Department of International Business Class : POHE 61, Commercial Business
Management
Room : Online
Exam Date: November 26, 2021

Code: IB.009.021.61
Duration: 90 minutes

PART 1. Theoretical questions

Question 1. (2 points) – Differentiate market globalization and production globalization. Give example for
each.

Question 2. (2 points) – How an international company could manage political risks when joining international
business?

Question 3. (2 points) – Choose the most suitable answer and explain why.
3.1. Making has the advantage of being able to help international businesses switch sources of supply easily.?
a. True b. False

3.2. Culture has little influence on an international business enterprise's decision to choose a target market.
a. True b. False

PART 2 – CASE STDUY: Read the case study and answer the questions below.
Established in 1980, MUJI is a Japanese retail company with a diversified portfolio of household
and lifestyle products. MUJI is shortened from the full name "Mujirushi Ryohin", which in Japanese
means "quality product without brand". MUJI sets itself apart by simplifying product design, emphasizing
recycling, minimizing waste during production, packaging, and a "no-brand" policy. MUJI is present in 33
countries and territories with more than 1,000 stores. MUJI steadfastly pursues 3 core principles,
including: selecting the most suitable raw materials, optimizing production processes and simplifying
packaging. In 2019, Ryohin Keikaku - the parent company of MUJI announced a plan to enter the
Vietnamese market. This unit has established MUJI Vietnam Co., Ltd to develop business here and owns
100% of capital. On July 3, 2021, the second MUJI store was opened in Hanoi. Southeast Asia's largest
store in Ho Chi Minh City opened at the end of 2020. With an area of more than 2,000 m2, MUJI's
flagship store in Hanoi has 5,000 products from fashion and cosmetics to home appliances, furniture, and
food. According to Tetsuya Nagaiwa, General Director of MUJI Vietnam, this business takes a lot longer
to find premises in Hanoi than in Ho Chi Minh City. He explained that the location in Ho Chi Minh City is
easy to find because the city center is District 1, while in Hanoi, there are many similar places in terms of
customer attraction in different areas. After 2 years of survey, MUJI decided to choose to set up shop in
Vincom Center Metropolis, Lieu Giai because this is an area with a large number of Japanese people living
and having a large enough space. "MUJI's current strategy is to dominate in the two big cities first, in order
to improve and enhance brand recognition. Depending on economic development, population and other
factors, MUJI will balance reminded to open more stores in other cities after Hanoi and Ho Chi Minh
City," said MUJI Vietnam General Director. He also assessed Vietnam as one of the most potential retail
markets in the world today. "This is one of the most potential retail markets in the world today. With a
stable, continuously growing economy, a young population, a constantly increasing average income and an
increasing standard of living. It is not surprising that Vietnam has been attracting the attention of many
investors," he said. Vietnam has attracted many investors as the economy continues to grow, as well as the
population of young people with middle incomes is constantly increasing. In addition, Mr. Nagaiwa also
said that the price of some MUJI products in Vietnam will be cheaper than in other markets because they
are manufactured by domestic partners. However, he did not disclose specifically MUJI's factories in
Vietnam.
 Mr. Tetsuya Nagaiwa said, Covid-19 suddenly occurred when MUJI had completed the final
steps in infrastructure preparation, staff training and goods were warehoused. In order to avoid risks and
comply with epidemic prevention regulations, the company allows employees to work from home and
wait for the epidemic to be well controlled before officially doing business.
In addition to selling imported products, MUJI has partners to process goods in Vietnam. "Made
in Vietnam" products not only serve the local market but also export to Asian countries. However, these
products sold in Vietnam will have a "softer" price than the common ground when sold abroad.

Question 4 (2.5 points) – How is MUJI currently penetrating the international market? Explain.

Question 5 (1.5 points) – In your opinion, what will MUJI's international market penetration look like in
the context of the Covid-19 pandemic?

Note: Students are allowed to use materials according to the regulations of the Department.