Course: International Business
December 2021 Examination
1. “In International Business an organization should be able to cope up with the international
differences that arises from different culture and for that the international culture has to be
understood by the managers”.
In light of above statement explain various factors an organization need to understand about
cultural difference while making strategies for international business. Also explain interaction
between national culture and organizational culture. (10 Marks)
2. “Titan Watches” is known for transforming the watch industry in India. Company wants to
evaluate Bangladesh as a potential market for business expansion. Titan wants to conduct a
market research to identify this opportunity.
What is the scope and process involved in conducting International Market Research?
(10 Marks)
3. Nike Inc., the world’s leading apparel and footwear manufacturer, outsources the
manufacturing part of the production to a number of factories in Asia where there is plenty of
cheap labor available.
Usually, it chooses countries where cheap labor is available, where there is an authoritarian
government, and the lack of union rights appeals and union movements.
Since the 1970s, Nike, Inc. has been accused of using sweatshops to produce footwear and
apparel. It was built on the business model of finding the lowest cost of labour possible which
led to child labour and exploitation
As to remain competitive in the market, Nike searched for cheaper resources and markets.
Therefore, Nike had shifted its production to lower manufacturing cost countries such as Japan,
Korea and Taiwan. Later in the 1980s, production had moved to Southern China. However, as
Japan’s economic started expanding, the manufacturing cost increased. Therefore, Nike shifted
its contracts to Vietnam, Indonesia and China
Nike has the highest number of contract factories in China followed by Thailand, South Korea,
Vietnam, Pakistan, Bangladesh, and India. By opting for such places, Nike has made huge
margins due to cheap labor…
Starting from the mid 1990s, there were criticisms from human right protectors and media
regarding labour health and safety conditions, low wages and discrimination in the hiring and
firing process. Therefore, Nike started to take actions as to rescue its reputation.
a. Briefly describe the ethical issues involved in sweatshop conditions and the treatment of
workers in Nike’s factories. (5 Marks)
b. Nike has failed to follow the labor laws of the countries it operates in and has not succeeded in
effectively implementing its Code of Conduct. What measures must Nike take to convince the
public that it really wants to put an end to the maltreatment and exploitation of workers in its
Asian factories? (5 Marks)
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