QT.KT.001/BM01.

For: WRITTEN EXAM

FOREIGN TRADE UNIVERSITY FINAL EXAM PAPER

SCHOOL OF ECONOMICS & BUSINESS ECONOMICS (KTE312E)
INTERNATIONAL BUSINESS
__________________________________
_________________________

Phase 2 Semester 1 Academic year: 2021 – 2022

PAPER NO.:1 Full-time Class: K59 – Advanced program
Delete this box if
unnecessary
Date: 28/12/2021 Time: 15h00-16h00
Duration: 60 minute

1. Analyse the advantages of owner-controlled firms. Is this kind of firms getting more popular
in Vietnam, why? (3 points)

2. Explain your understanding about economies of scale and economies of scope. Give example
for each of the types (1 point)

3. Two firms in the market produce their products with the following information: (2 points)
The market demand curve is Q = 115-P; Cost function is TC(Q)=1.5Q2-5Q+10 for each firm.
Assume that two firms compete with each other under Cournot:
a. What is each firm's response function? Draw the graph showing two firms' reaction (1.5)
b. What is the optimum quantity and price for each firm? What is the value of each firm's profit?
(0.5)

4. We obtain the estimation results of quantity demanded of beans of households a certain

country as follows: (4 points)

Variable Beans Maize Gari Yam Rice

Log of beans price 0.0509*** -0.0166*** -0.0009 -0.0234*** -0.0103*
Log of maize price -0.0166*** 0.0490*** 0.0003 -0.0105** -0.0137***
Log of gari price -0.0002 -0.003 0.0015* -0.0178*** 0.0045*
Log of yam price -0.0236*** -0.0187*** -0.0059*** 0.0465*** 0.0052
Log of rice price -0.0103* -0.0137*** 0.0045* 0.0052 0.0095***
Log(Household size) 0.0043 -0.0023 -0.0001 -0.0101** 0.0075**
Log(Household income) -0.0088 -0.0155** -0.0040** 0.0063** 0.0252**

Where: ***, **, * denote 1%, 5% and 10% statistical significance.

The demand function has the form: LogQrice = f(log(X))
LogQrice denotes natural logarithm of demanded quantity of beans
X is a matrix including beans price, maize price, gari price, yam price, rice price,
household size, household income.
a. Analyze:
- The effects of each determinant on demanded quantity of beans (2 points)
 - The effect of price of beans on the demanded quantity of other goods? (1 point)
b. How could you categorize beans, maize, gari, yam and rice into different groups of
goods on the basis of the effect of income on demanded quantity? (1 point)

--------------------------------------End of test--------------------------------------
Note: - This paper contains 4 questions.
- Students could use any material during the examination.
- Invigilators will not provide further explanation.

EXAM PAPER APPROVAL