THE INTERNATIONAL UNIVERSITY (IU) – VIETNAM NATIONAL UNIVERSITY – HCMC

FINAL EXAMINATION
Date: 14th June 2021
Duration: 7 days
Student ID: ..................................
Name:................................................

SUBJECT: INTERNATIONAL BUSINESS MANAGEMENT (BA151IU)

Dean of School of Business Lecturer
Signature: Signature:

Full name: Phan Trieu Anh

Full name: Dr. Trinh Viet Dung

GENERAL INSTRUCTION(S)

The students have 7 days to complete the exam. Plagiarism is taken very seriously so be
sure that the submission is clear from any form of verbatim reproduction from other
sources.

The students can do further research to improve the answers rather than just repeating
the ideas and data received in class.

Follow the instruction on word limit for each question. Those who go beyond the limit
will be penalized accordingly.

Please provide student ID and student name in the spaces on top of this page.

Complete the answers right after the questions in this Word file and submit within the
time specified in the announcement on Blackboard.

ENJOY and GOOD LUCK!

1. Please describe the location economies of the United States so that it became a
preferred destination for foreign investors. (25 points) (Complete the answer using not
more than 250 words)
Answer (here):

2. PrimeTimeApparel (PTA) is a company manufacturing clothes in Vietnam. It has

provided silk garment to the local market for a long time utilizing special traditional
materials from the north of the country. Its products are famous for quality – very
comfortable but durable and keeping the form over the life of the product – and the
company could price them at premium levels.

Recently the company had to face fierce competition from companies in China, they
provide the garment close to (but lower than) PrimeTimeApparel’s quality level, but at a
more attractive price range, so they obtain considerable market share from
PrimeTimeApparel in Vietnam. PrimeTimeApparel believes that in order to survive and
grow, the local market is not enough, and it has to expand to international markets.
However, the company knows that the Chinese competitors are everywhere, and it
wonders whether in the international market it should confront these competitors
head-on with their price war.

On its initial steps of expanding, market research shows that PrimeTimeApparel’s

products are very well received in the market of developed countries, where GDP per
capita is over US$ 27,000. The customers there are ready to spend but they seem to be
having diverse preferences, very demanding in terms of design and product quality. For
instance, the company recognizes that the international customers required that their
main product, the nightgown – priced at US$ 600 a piece, to be very individualized.
German ladies want the nightgown to be loose, broad and long while French women
prefer the product to be much tighter, shorter and revealing.

Use Bartlett and Ghoshal typology of strategies (international, global standardization,

transnational, and localization) and the information above, please suggest which
strategy PrimeTimeApparel should pursue and provide your own justification. (25
points) (Complete the answer using not more than 200 words)

Answer (here):

3. Make-or-buy is a critical decision that an MNC must consider. The issue is even more
complicated when “buy” is the option of having parts outsourced to partners in other
countries.

A British company manufacturing high-end cars are contemplating outsourcing the

exhaust system to a partner from India. The British cars have been best known for its
excellent engine, especially acceleration power. However, the exhaust system does not
contribute significantly to that special feature.

Should the British car company make the exhaust system by themselves or outsource
the job to the Indian partner? Please suggest with adequate explanation. (25 points)
(Complete the answer using not more than 150 words)

Answer (here):

4. In your own words, please explain why a country having fragmented retail system
tends to have a longer channel, and on the contrary, a concentrated retail system tends
to have a shorter channel?

Between Vietnam and Germany, which country has a longer distribution channel length
in general? In terms of communication, a German company producing forklift used in
warehouses should utilize push or pull strategy in their home market? And in Vietnam
market? Please explain (25 points) (Complete the answer using not more than 100
words)

Answer (here):