Reference no: EM133214351

Question 1.

"The World Trade Organisation (WTO) is one of the most important and controversial organisations of the world. While it has helped bring millions of people out of poverty and raised standard of living worldwide, it strikes at the heart of what it means for a country to be independent and control its own destiny. As a lynchpin of globalisation, the WTO allows us to enjoy products and services from around the world, but it lays bare the frailty of many industries, in some cases causing unemployment and even threatening social cohesion" (Collins, 2015:1)

Using relevant examples, critically analyse the extent to which the World Trade Organisation as a global trade body has been successful in attaining its primary objective of promoting free trade for the benefit of all.

Question 2.

"International market entry modes refer to the methods of business organisation employed by companies to enter international markets for the purpose of undertaking value-creating activities. They represent the formal mechanisms and relationships employed in cross-border activities. Since these refer to both initial entry into a new foreign market and also subsequent development in that market, a more accurate term is "International market entry and development" (Jones et al, 2009:7)

Referring to relevant examples, critically evaluate the different modes of entry employed by companies to enter international markets.

International Business and Management

Question 3.

"When a person from one cultural background, meets, interacts with, understands and deals with a person from another cultural background, that is cross-cultural management. In an increasingly global world, business environments include people from cultural backgrounds. Cross-cultural management techniques help cope with these differences so as to better succeed in this diverse environment. Cross-culture is a vital issue in international business, as the success of international trade depends upon the smooth interaction of employees from different cultures and regions."

With reference to the above statement and the dimensions of the Hofstede's national culture framework, discuss the importance of an understanding of the foreign culture in the development and implementation of effective management strategies.

Question 4.

"During the 1990s and early 2000s 'globalisation' became arguably the buzzword of the time. For all its resonance in academic and popular discourse, 'globalisation' often remained a vague and elusive concept. Globalisation has been widely used to refer to sharp increases in levels of international economic flows since the 1970s." (Michie, 2011:60).

However, Murshed (2004:67) notes that "globalisation has marginalized many nations in the South since 1980 and there are systematic mechanisms via which this occurs."

Referring to the above quotations and by using appropriate examples, critically analyse the costs and benefits of globalisation.

Question 5.

"It is then the juxtaposition of the ownership-specific advantages of firms contemplating foreign production, or an increase in foreign production, the propensity to internalize the cross-border markets for these, and the attractions of a foreign location for production which is the gist of the eclectic paradigm of international production. But the identification and value of the specific ownership, location and internalisation (OLI) parameters that will influence individual MNEs in any particular production decision will vary according to the motives underlying such production." (Rugman, 2002:243)

Critically evaluate the above statement, by paying particular attention to the importance of the Ownership, Location and Internalisation (OLI) advantage favouring international production over other modes of entry into foreign markets.