6EC513 Global Business and Strategy: Assignment
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Added on 2021-02-19
6EC513 Global Business and Strategy: Assignment
Added on 2021-02-19
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6EC513 Global Business and StrategyCoursework 1 TestStudent ID____________________________________________1. A manager who has cultural literacy can most likely ________. [3 marks]recognize the similarities and differences of culturesdevelop accurate cultural assessments of foreign colleaguesspeak and read in more than one languagefunction as an expatriate manager in multiple foreign locations2. According to mercantilism, what should a country's primary goal be? [3 marks]protecting citizens from unfair labour practicesensuring sufficient labour for low-wage jobs in the textile industrypromoting exports to enlarge gold and silver holdingsencouraging imports to prevent resource depletion3. If a Dutch pension fund purchases 1,000 shares of Nissan's stock, the Dutch company hasmost likely ________. [3 marks]earned a lower rate of returnmade a foreign direct investmentearned a higher return on assetsmade a foreign portfolio investment
4. McDonald's has licensed its brand name, operational systems, and trademarks to individualrestaurant owners in Europe. This is called international ________. [3 marks]leasingmarketingdiversifyingfranchising5. An example of a public sector procurement policy non tariff barrier is ________. [5marks]China's policy that imported sugar be distributed only by state-owned enterprisesCanada's requirement that baby food be packaged in 4.5- and 7.5-ounce containersthe "Buy American" policy in the United StatesMalaysia's requirement that during prime time at least 40 percent of the songs on the radio beby local artistsTurkmenistan's requirement that all imports of consumer goods be approved by the StateStandards Committee6. Country AB invented the multi-chip CPU in 1980. But in 2018, AB meets almost all itsCPU demand by importing from a developing country called YZ. a) According to the product life cycle theory, which stage is the CPU industry in? Explainyour answer. [6 marks] Product Life Cycle Theory: As CPU demand still has scope to increase its sales by fulfillingdemand of country YZ. The CPU industry is in growth stage of Product Life Cycle as productis in demand and now Country AB will decide that whether it will increase its market shareor increase its profits margins. This stage is characterised in booming time for product asthere are scope to increase its production so that demand is met in market. In context to
Multi-chip of CPU country is meeting almost of its demand of Country YZ and still there isscope that production can be enhanced so that supply is increased and profits are increased. 7. See the following tableOutput per workerUkraineJapanWheat5331Barley 492a) Is there any possibility of trade between Ukraine and Japan as per the absolute advantagetheory? [4 marks]There are no chances of trade between these two countries as the absolute advantage theorybecause there should be mutual benefits for both the parties. In this case only Ukraine will getbenefit as Japan is more efficient is producing more Wheat and Barley. This justify that thereare no chances of trade according to concept of absolute advantage theory.b) Explain your answer [4 marks]Absolute Advantage Theory: It is an ability of company or country to produce morequantity of goods or services using limited resources in comparison of other entity. In thistype of advantage there is need that both parties are equally benefited from trade betweenthem. But in present case only Ukraine will be benefited as Japan workers are more efficientin producing both Wheat and Barley. Thus there is no possibility that these two countries canindulge in trade with the concept of absolute advantage theory.8. An important difference between tariffs and quotas is that tariffs [3 marks]generate tax revenue for the government.stimulate international trade.help domestic producers.raise the price of the good.
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