KENYATTA UNIVERSITY

UNIVERSITY EXAMINATIONS 2010/2011

SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR
OF COMMERCE
BBA 402: MANAGEMENT OF INTERNATIONAL BUSINESS AND
ORGANIZATION
DATE: Tuesday, 5th April, 2011 TIME: 11.00 a.m. – 1.00 p.m.
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INSTRUCTIONS:
Answer question ONE plus any other TWO questions.
1. a) One of the ways in which a Kenyan exporter can reduce the risk of
participating in the international trade is to insure with the Export Credit
Agency (ECA) of COMESA. Explain the type of risks that the ECA
covers. (10 marks)
b) Explain the arguments that have been advanced in favor of regional
economic integration. (10 marks)
c) Explain the functions of the foreign exchange market. (10 marks)

2. a) Explain factors that can cause the currency of a country to appreciate

(12 marks)
b) Highlight four ways in which a country could settle a deficit in its balance
of payments. (8 marks)

3. a) One of the documents that are required before an importer can collect

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 goods from the port of unloading is the bill of lading. Explain the
information that must be provided in the bill of lading for it to be good and
full. (12 marks)
b) Explain the obligations of the exporter under the cost and freight CFR
(Named port of destination) terms of delivery. (8 marks)

4. Explain the forms of information that the advising bank is supposed to provide to
the beneficiary of a letter of credit. (20 marks)

5. Following the collapse of the International Monetary system, the Smithsonian

conference of 1971 was called. Explain the resolutions of the conference.
(20 marks)

6. In order to control wide fluctuations in exchange rates, the creators of the IMF
stated the obligations of the member states in the Articles of Agreement of the
IMF. Explain these obligations. (20 marks)

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 KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2011/2012
OPEN, DISTANCE AND e-LEARNING (ODel)
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
BBA 402: MANAGEMENT OF INTERNATIONAL BUSINESS AND ORGANIZATION
DATE: FRIDAY, 16TH DECEMBER 2011 TIME: 8.00 A.M. – 10.00 A.M.

INSTRUCTIONS: Attempt questions one and any other two questions.

Question One
(a) Explain the difficulties that managers encountered during the operation of mercantile
system.
(b) Explain the reasons why it would be advantageous for an international manager to have
access to the balance of payments information of a country in which he plans to start
operations.
(c) Explain the benefits that would accrue to a firm that operates in a country which is a
member of regional economic union.
(30 marks)
Question Two
Explain the benefits of establishing a Greenfield operation to each of the stakeholders below.
(a) The country
(b) The foreign investors
(20 marks)
Question Three
Explain the reasons why a Kenyan firm would find it advisable to insure his export
transaction with the export credits Agency of COMESA. How are the functions of ECA
related to the functions of the Export Credits Guarantee Department (ECGD) of Britain.
(20 marks)

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Question Four
Highlight the information that should be provided in each of the following documents.
(a) A good and full bill of lading
(b) A marine insurance certificate
(20 marks)
Question five
One of the ways a manager could export goods is by use of a bill for collective. Explain the types
of acceptance that could be made on the bill of exchange by the drawee. What are the obligations
of the drawee. (20 marks)

Question six
Explain the procedure used when a confirmed and irrevocable letter of credit is used in
international settlements. (20 marks)

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 KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2010/2011
INSTITUTE OF OPEN LEARNING
EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE

BBA 402: MANAGEMENT OF INTERNATIONAL BUSINESS AND

ORGANIZATIONS
=================================================================
DATE: MONDAY 31ST JANUARY 2011 TIME: 8.00 A.M. - 10.00 A.M.

INSTRUCTIONS
Answer Question ONE And any other Two.

1. The consequences or effects of foreign direct investment may be understood from the
perspective of the host country and that of the home country. Explain the major
positive and negative impacts of foreign direct investment. (30 marks)

2. Multinational enterprise has been defined as a firm with subsidiaries, branches or

other controlled affiliates in three or more countries. Discuss the various
characteristics of this enterprise. (20 marks)

3 You wish to be involved in foreign manufacturing. Highlight the distinct

alternatives which you can use to succeed in your wish . (20 marks)

4. The international Monetary Fund was created for the purpose of reconstruction of
Europe after the end of World War. It however has outgrown and has other
functions. Describe in detail these functions. (20 marks)

5. Give the various reasons as to why a country would impose non-tariff barriers when
engaging in international Trade. (20 marks)

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 KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2010/2011
OPEN, DISTANCE AND E-LEARNING
EXAMINATION FOR THE DEGREE OF BACHELOR OF COMMERCE

BBA 402: MANAGEMENT OF INTERNATIONAL BUSINESS AND

ORGANIZATION
=================================================================
DATE: THURSDAY 7TH JULY 2011 TIME: 8.00 A.M. – 10.00 A.M.

INSTRUCTIONS
Answer Question ONE plus any other TWO questions.

1. a) Explain the difficulties that mercantile traders faced in their operations.

b) Highlight the benefits of FDI to host countries.
c) Explain the responsibilities of the importer under FOB terms of delivery.
(30 marks)

2. Explain the functions of the International Finance Corporation (IFC) in international

business. (20 marks)

3. Explain the advantages of the Green field form of FDI to a host country. (20 marks)

4. Using a diagram, explain how the equilibrium rate of exchange is determined in the
foreign exchange market. (20 marks)

5. Explain the procedure use din protesting a bill of exchange for non-acceptance and
nonpayment. (20 marks)

6. Articles 20 of the uniform customs and practices for collections outlines the
procedures followed by banks in advising the fate of a bill for collection. Explain
these procedures. (20 marks)
END

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 KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2011/2012
SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE
BBA 402: MANAGEMENT OF INTERNATIONAL BUSINESS & ORGANISATIONS

DATE: TUESDAY, 27TH MARCH 2012 TIME: 4.30 P.M. – 6.30 P.M.

INSTRUCTIONS: Answer Question One as compulsory and any other Two questions.

1. (a) An international business manager who is planning to start a subsidiary in

a foreign country must negotiate with a potential host country on favourable
conditions for starting operations in the host country.
Explain the conditions the manager should include in the negotiations with the host
government.
(b) Explain the problems that mercantile traders encountered during their trade with
foreign countries.

2. (a) The globalisation debate has emerged because of the activities of the World Trade
Organization (WTO) in international business. Explain the main points in this
debate. (10 marks)
(b) The table below gives the opportunity costs and the products produced and
traded between Kenya and Uganda.
Use the information provided in the table to answer the question that follow.

Product Trading countries

Uganda Kenya
Oil 150 800
Soda Ash 400 100

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 Explain the ways in which the principle of absolute advantage would differ from the
principle of comparative advantage. Outline the weaknesses of using the principles.
(10 marks)

3. (a) Discuss the main role of international monetary and financial systems in
international trade. (10 marks)
(b) Discuss the factors to consider in selecting foreign direct investment locations.
(10 marks)

4. (a) Explain why international managements need to be aware of cultural variables

relating to international space, agreements, contracts, language and religion.
Give typical examples. (10 marks)
(b) Contrast Ethnocentric and Geocentric attitudes towards foreign operations
and show how they are applied in the practice of international management.
(10 marks)
5. (a) Explain the benefits that would accrue to Southern Sudan if it is allowed to
join the East African Community. (10 marks)
(b) Explain the reasons why an exporter should use a letter of credit in the export
transactions. (10 marks)

6. (a) Distinguish between collectivist and individualistic cultural inclinations towards

the goals and objectives of the company. (10 marks)
(b) Why has there been the long standing assumption that women would fail
in foreign management assignments. (10 marks)

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 KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2011/2012
FIRST SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR OF
COMMERCE

BBA 402: MANAGEMENT OF INTERNATIONAL BUSINESS

AND ORGANIZATIONS

DATE: Wednesday, 30th November, 2011 TIME: 8.00a.m. – 10.00a.m.

INSTRUCTIONS:

Answer Question ONE and any other TWO Questions

Q.1) Internationalization of markets is a growing trend in the global business management.

Stemming the tide is a battle of conjecture:
(a) Explain FIVE drivers of international business management
and organizations (10 marks)

(b) International business management is faced by several hurdles.

Giving relevant examples; explain FIVE hindrances to international
trade. (10 marks)

(c) Outline FIVE possible benefits that may accrue to an organization

from being a member of a regional economic union. (10 marks)

Q.2) Describe FIVE major strategies that a firm may use to enter a foreign
market. (20 marks)

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Q.3) Explain the following documents used in International business management:
(a) Bill of lading (5 marks)
(b) Commercial invoice (5 marks)
(c) Bill of exchange (5 marks)
(d) Certificate or origin (5 marks)

Q.4) The greatest challenge to any business organization is the unpredictable nature of the
business environment. In the light of evolution of international businesses, explain the
possible business management orientations that a company may adopt. (20 marks)

Q.5) (a) Explain FIVE key features of competition between the developed and
developing countries in international trade. (10 marks)

(b) Explain FIVE roles of economic blocks in international business

and organizational management. (10 marks)

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