Introduction to International Business Revision History:

Academic Session 2015

Second Semester

July 2015

TMA2

BMG306/05 Introduction to

International Business

Revision History:

Date

15-Apr-2015

Revision

O

Details

New Release

Instructions:

1. TMA 2 covers Unit 3, 4 and Unit 5.

2. TMA 2 contains 3 essay questions and a case study. Answer all questions.

3. TMA 2 carries 25% of your final total marks.

4. The assignment should be typed using Times New Roman, font size 12, double

spaced and approximately 2000 to 4000 words.

5. The deadline for the submission of TMA 2 is 25-Oct-2015. A softcopy should be

submitted via Online Assignment Submission System.

Page 1 of 3

PART A (50 marks)

Answer all questions.

1. Discuss possiblereasons why Malaysia might be keen to join AFTA.

(25 marks)

2. Answer the following questions:

(a) Brainard (1997) found that 1% increase in tariffs resulted in a rise in sales

via FDI of approximtely 0.5%. Taylor (2000) found that there is a positive

relationship with countries having more open trade policies and FDI in flow

of investment. Suggest an explanation to the two contradicting findings.

(15 marks)

(b) If you are the director of MITI whose responsibility is to improve the inflow

of FDI, what would be your suggestion after reading above 2 papers?

(10 marks)

PART B (50 marks)

Read the article ‘MNE strategies in the US market” in WOU MyDigital

Library, E-course reserves, BMG306 at Unit 5 and answer all the following

questions.

3. Suggest the international strategy which appears to be adopted by the

following European companies in their US ventures.

Farnell

Ericsson

Midland Bank

BP

(10 marks)

4. What can we learn in a strategic context from the success and failure of the

companies in the case study?

(20 marks)

5. Other than cultural factor, what are other factors need to be considered when

entering the U.S. market?

(20 marks)

Page 2 of 3

References:

Daniels, J. D., Radebaugh, L. H., & Sullivan, D. P. (2011). International...