Test Paper

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Examination Paper of International Business Management
IIBM Institute of Business Management Examination Paper International Business Management Section A: Objective Type (30 marks)    This section consists of multiple choice questions and short answer type questions Answer all the questions. Part One carries 1 mark each and Part Two questions carries 5 marks each. MM.100

Part One: Multiple choices: 1. What is the series consideration for strategy implementation? a. Strategic orientation b. Location c. Dimensions d. Both (a) & (b) 2. The major activity in global marketing is a. Pricing policies b. Product lines c. Market assessment d. All of the above 3. The third ‘P’ in the ...view middle of the document...

IIBM Institute of Business Management

Examination Paper of International Business Management

Caselet 1 THE EU’S LAGGING COMPETITIVENESS In a report produced for the European Commission, published in November 1998, it was argued that the EU lags behind the USA and Japan on most measures of international competitiveness. Gross domestic product per capita, sometimes used as an indicator of international competitiveness at the country level, was 33 per cent lower in the EU as a whole than in the USA and 13 per cent lower than in Japan. The EU’s poor record in creating employment was singled out for particular criticism. As this appeared to apply across the board in most industrial sectors, it suggested that the EU’s poor performance related to the business environment in general and, in particular, to the inflexibility of Europe’s labour markets for goods and services. A shortage of risk capital for advanced technological development and high cost and inefficiency of Europe’s financial services were also highlighted by the report. For one reason or another, European industries generally lag behind in technology industries. If measured by the number of inventions patented in at least two countries, the USA is well ahead of most European countries, as well as Japan. Despite these shortcomings, the report’s authors focus attention on flexible markets, market liberalisation, and the creation of a competitive business environment rather than on targeted intervention by the EU or national authorities. 1. Is gross domestic product per capita a useful indicator of International competitiveness in the EU? 2. Is it fair to point the blame for the EU’s poor international competitiveness at inflexible labour markets, regulated goods and services markets, and a general lack of competition? What alternative explanations might be suggested?

Caselet 2 PERU Peru is located on the west coast of South America. It is the third largest nation of the continent (after Brazil and Argentina), and covers almost 500,000 square miles (about 14 per cent of the size of the United States). The land has enormous contrasts, with a desert (drier than the Sahara), the towering snow-capped Andes mountains, sparkling grass-covered plateaus, and thick rain forests. Peru has approximately 27 million people, of which about 20 per cent live in Lima, the capital. More Indians (one half of the population) live in Peru than in any other country in the western hemisphere. The ancestors of Peru’s Indians were the famous Incas, who built a great empire. The rest of the population is mixed and a small percentage is white. The economy depends heavily on agriculture, fishing, mining, and services. GDP is approximately $115 billion and per capita income in recent years has been around $4,300. In recent years the economy has gained some relative strength and multinationals are now beginning to consider investing in the country. One of these potential investors is a large New York...

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