Description

International Business

Jun 2025 Examination

Q1. Critically infer the complex relationship between international business activities and a nation’s economic growth. Elaborate both the potential advantages and disadvantages, considering the role of foreign direct investment, trade liberalization, and technological diffusion. How can developing economies strategically leverage international business to foster sustainable economic development while mitigating potential risks? (10 Marks)

Ans 1.

Introduction

International business has emerged as a powerful engine of economic transformation in the 21st century. As globalization intensifies, the movement of goods, services, capital, and technology across borders has become vital for economic dynamism. For both developed and developing nations, international business activities—especially foreign direct investment (FDI), trade liberalization, and technological diffusion—can significantly impact GDP growth, employment generation, innovation, and competitiveness. However, the relationship is not linear or uniformly beneficial. There are complex interdependencies and potential vulnerabilities, especially for emerging economies. Understanding the dual nature of international business is essential for crafting policies that not only maximize the benefits but

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Q2. Multinational companies (MNCs) operate across diverse socio-economic and cultural contexts. Evaluate the effectiveness of different Corporate Social Responsibility (CSR) strategies employed by MNCs in addressing the varied challenges they encounter. Critically assess the extent to which these strategies genuinely contribute to sustainable development versus serving as mere public relations tools. Consider the roles of stakeholder engagement, ethical supply chains, and environmental stewardship in your evaluation. (10 Marks)

Ans 2.

Introduction

In an increasingly globalized world, multinational companies (MNCs) are no longer assessed solely on financial performance but also on their social and environmental impact. Corporate Social Responsibility (CSR) has emerged as a key strategic tool for MNCs operating across multiple socio-economic and cultural settings. Through CSR, companies aim to address pressing global challenges such as poverty, climate change, inequality, and resource scarcity. However, the authenticity and effectiveness of these initiatives are frequently questioned. Some CSR programs are deeply embedded in corporate values and drive meaningful change, while

Q3A. Global Tech, a US-based software company, is expanding its operations into Japan. The company’s management team, accustomed to direct and assertive communication, has noticed that their Japanese counterparts seem hesitant to express dissenting opinions and often rely on indirect communication. This has led to misunderstandings and delays in project implementation.

Question: Design a comprehensive communication strategy for Global Tech that bridges the cultural gap and fosters effective collaboration between the US and Japanese teams. Consider specific cultural dimensions (e.g., Hofstede’s cultural dimensions) and propose practical solutions to address the communication challenges.  (5 Marks)

Ans 3a.

Introduction

When expanding operations internationally, understanding and respecting cultural differences in communication is critical. Global Tech’s expansion into Japan has highlighted a contrast between American directness and Japanese indirectness. These cultural differences, if unaddressed, can hinder project efficiency and workplace harmony. To ensure smooth collaboration, the company needs a culturally sensitive communication strategy. Applying frameworks like Hofstede’s cultural dimensions can guide the creation of effective

Q3B. Fashion Fusion, a European clothing brand known for its trendy and revealing designs, is planning to enter the Middle Eastern market. Initial market research indicates a strong interest in Western fashion, but also reveals cultural sensitivities regarding modesty and traditional values.

Question: Develop a tailored market entry strategy for Fashion Fusion that balances the brand’s identity with the cultural norms of the Middle Eastern market. Propose specific adaptations in product design, marketing, and distribution to ensure successful market penetration.  (5 Marks)

Ans 3b.

Introduction

Fashion Fusion’s plan to enter the Middle Eastern market offers significant growth potential, but success hinges on balancing Western fashion aesthetics with deeply rooted cultural and religious values. The Middle East has a complex mix of modern consumer behavior and traditional norms, especially regarding modesty in clothing. A culturally nuanced market entry strategy that respects these values while preserving the brand’s identity is essential. This