KOLEJ PROFESIONAL MARA BANDAR MELAKA

INTERNATIONAL BUSINESS (MGT3453)

REVISION
Chapter 1: International Business and Globalization
1.

Define international business and globalization

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2.

International business differs from domestic business for a number of reasons. Briefly explain
them
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3.

International business can be seen everywhere in todays world, not only at the country level but
also the individual level. Describe the major participants of international business
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4.

Discuss the benefits of globalization which the countries can enjoy

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5.

Identify the areas that encompass modern globalization

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6.

Describe the components of globalization that they are directly linked with the
development and composition of international business in a global world

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7.

Illustrates the drivers of international business for the growth of business

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8.

Explain the four (4) types of risks that firms have to encounter

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9.

Discuss reasons why companies are moving towards the international business.

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10.

Discuss the types of challenges that firms may encounter when entering international business
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Chapter 2: International Business environments

1.

Political ideologies are a form of social or political philosophy and there are three major
political ideologies. Differentiate Anarchism, Fascism and Pluralism as three major forms
of political ideologies in the world.

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2.

Define democracy and totalitarianism

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3.

Briefly explain the types of democracy that have been practices in international business

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4.

Discuss the common types of political risks that are often faced by firms in foreign
countries

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5.

Identify the types of law that practices in the common countries in the international
business

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6.

Differentiate the types of economic system that practices in international business

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7.

Define culture

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8.

Identify the characteristics of culture in the international business

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9.

Discuss the components of culture that can easily seen in daily life and business activities

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Chapter 3: International Trade and Theories
1.

Identify the factors that speed up the growth of international trade

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2.

Define the followings:

(a)

Mercantilism
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(b)

Absolute advantage
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(c)

Comparative advantage
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(d)

Heckscher-Ohlin Theory

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3.

Define the followings:

(a)

Product Life Cycle Theory

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(b)

The New Trade Theory

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(c)

National Competitive Advantage Theory (Porters Diamond Model)

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4.

Identify the instruments of trade policy that proceed in the international trade.

(a)

Tariffs
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(b)

Subsidies
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(c)

Import quotas and Voluntary Export Restraints

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(d)

Local content requirements

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(e)

Administrative policies
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(f)

Antidumping policies
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5.

Discuss the political arguments for government intervention in the international trade

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6.

Discuss the economic arguments for government intervention in the international trade

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Chapter 4: Foreign Direct Investment

1.

Define Foreign Direct Investment

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2.

Identify the factors that affect on the rapid growth of FDI in recent years
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3.

Explain reasons that a company chooses Foreign Direct Investment even when other
alternatives such as exporting or licensing are available

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4.

Discuss the factors that influencing FDI for firm to choose the strategic location to invest

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5.

Differentiate between Horizontal Foreign Direct Investment and Vertical Foreign Direct
Investment

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6.

Differentiate between impacts of FDI on Host countries and Home countries

Host countries

Positive Impacts

Home countries
Positive Impacts

Negative Impacts

Negative Impacts

7.

Differentiate between incentives and constraints of FDI on Host countries and Home
countries

Host countries

Home countries

Incentives

Incentives

Constraints

Constraints

8.

Briefly discuss reasons why firms prefer Acquisition rather than Greenfield investment

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9.

Briefly discuss factors to differentiate between Acquisition and Green-field as two forms of
Foreign Direct Investment

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Chapter 5: The International Financial Environment

Foreign Exchange and the Financial Market

1.

Define exchange rate

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2.

Identify the purposes of trading in the FOREX

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3.

Identify the features of the FOREX

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4.

Briefly explain the two (2) functions of FOREX

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5.

Discuss the main uses of FOREX in international business

6.

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Explain the reasons why the dollar is so widely traded

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7.

Presently, countries around the world manage their currencies based on exchange rate regimes,
which differ from country to country. Discuss the features of the following exchange rate regimes:
(a)

Floating exchange rate

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Pegged float exchange rate

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(c)

Fixed exchange rate

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8.

Describe the process of Gold Exchange Standard

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9.

Describe the process of the Bretton Woods Agreement

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10.

Explain the determinants of exchange rate

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The International Monetary System

11.

Define International Monetary Fund (IMF) and explain the purposes of IMF in practicing
their roles

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12.

Discuss the three methods to achieve the objective of IMF

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13.

Define World Bank and identify the roles of World Bank

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14.

Describe the agencies under the World Bank in terms of its roles

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The Global Capital Market

1.

Describe each functions of generic capital market that occurs in international business

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2.

Describe the attractions of global capital market in perspective of borrowers and investors

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3.

Describe the factors that allowed the international capital market to bloom

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4.

Describe equity loan and debt loan in global capital market

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Chapter 6: Regional and Economic Integration

1.

Define regional economic integration

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2.

Briefly explain the advantages and disadvantages of economic integration apply in international
business
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3.

Preferential
Trade
Agreements
Definition

Differentiate between preferential trade agreements, free trade areas, customs unions,
common markets, economic unions and political unions and discuss the advantages and
disadvantages of each of them
Customs Unions

Common Markets

Definition

Definition

Definition

Definition

Definition

Advantages

Advantages

Advantages

Advantages

Advantages

Advantages

Disadvantages

Disadvantages

Disadvantages

Disadvantages

Disadvantages

Disadvantages

4.

Free Trade
Areas

Economic Unions

Political Unions

Discuss the factors that impede or encourage the establishment of regional integration

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5.

Briefly explain functions of ASEAN, AEC, East Asian Integration and APEC

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6.

Emerging economies represent the worlds largest potential markets, the source of the
worlds natural and human resources and increasingly the home of leading global brands
and innovation. Describe the history of China from the early 1980s on how it becomes one
of the emerging countries in Asia

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7.

Emerging countries offer abundant skilled, semi-skilled and unskilled labourers. Describe
how India benefits from the large population to become one of the emerging countries in
Asia

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8.

Assume that you are the new entrepreneur in Malaysia. Due to globalization, you have
planned to expand your business internationally. Before you enter any foreign country, you
have to undergo an evaluation process. Discuss the external evaluation that your firm needs
to do in selecting an international market

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9.

Assume that you are an entrepreneur whom decided to expand business in foreign
countries. Discuss challenges that the entrepreneurs have to face in dealing with
international business

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10.

An entrepreneur, who believes in developing your own brands, will go through countless
obstacles and extreme prejudices as to fight for the minds of the consumers.who would be
preferred foreign brands. As a new entrepreneur, briefly explain ways of how to be successful in
competing with foreign brands.
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Chapter 7: Global Strategy in International Business

1.

Discuss the factors towards strategy that firm to choose

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2.

Differentiate between first-mover status and bureaucratic costs

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3.

Discuss the global integration strategies and the pressures that the firms have to deal with
in the international business

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4.

Identify the four types of global integration strategies that used by the firms when operating
abroad
Global Strategy

Definition

Transnational
Strategy
Definition

International
Strategy
Definition

Multidomestic
Strategy
Definition

Advantages

Advantages

Advantages

Advantages

Disadvantages

Disadvantages

Disadvantages

Disadvantages

5.

Discuss the factors that influencing a firms decision to enter a market

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6.

Describe the types of entry modes of entering a market instead of making decision to
analyze the situations in the international business

Entry mode strategies

Exporting

Franchising

Licensing

Offshore Production

Turnkey Projects

Advantages

Disadvantages

International Joint Venture

Merger and Acquisition

Wholly-Owned Subsidiaries

7.

Identify methods for Direct Exporting and Indirect Exporting

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8.

Define strategic alliances. Discuss the advantages and disadvantages of the firms doing
strategic alliances

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9.

Discuss the three (3) factors that an alliance seems to be function

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10.

Identify how to managing the alliance

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11.

Discuss the factors that influencing centralization and decentralization

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12.

Describe the types of international involvements to organize the firms structure

Terms

Particulars

International Division Structure

International Area or Geographic Structure

International Product Structure

Global Matrix Structure

13.

List down the steps to control process

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14.

Identify the types of control systems that multinational firms use to

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15.

Discuss constraints in implementing the goals of MNC

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16.

Firms that compete in the global marketplace typically face two (2) types of competitive
pressure. Explain them.

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17.

Discuss methods of franchising in international business.

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Chapter 8: Exporting, importing and countertrade

1.

Discuss the promise and pitfalls of exporting

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2.

Identify the eight (8) strategic steps in increasing the probability of exporting strategy
successfully

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3.

Differentiate between letter of credit and countertrade in processing export and import in
payment transactions

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4.

Define countertrade. Briefly explain the pros and cons of using countertrade as trading
goods and services

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Chapter 9: Human Resource Management

1.

Define human resource management

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2.

Discuss the types of staffing policy of using by multinational firms

Terms

Advantages

Disadvantages

The Ethnocentric Approach

The Polycentric Approach

Geocentric Approach

3.

Discuss the problems in performance appraisal

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4.

Discuss the issues that raised in compensation

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5.

Describe the four (4) types of allowances practiced by multinational firms

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6.

Define ethnocentric staffing policy and explain three (3) reasons why firms pursue that policy.
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7.

Briefly explain reasons for firms to hire expatriate.

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Chapter 10: Global Business Marketing

1.

Define global marketing strategy

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2.

Differentiate between segmentation and adaptation

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3.

Identify the reasons for product modifications

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4.

Identify the benefits of global branding

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5.

Identify the approaches of global pricing

6.

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Discuss the considerations in global pricing that we should consider

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7.

Discuss the determinants in global distribution of multinational firms

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8.

Identify the barriers in global marketing communication that confronted by firms

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9.

Identify the push and pull communication strategy that used by firms

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10.

Explain three (3) factors that determine the relative attractiveness of push and pull strategies.
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11.

Define transfer pricing

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12.

Discuss the factors that influenced in global marketing strategies by firms

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13.

Define Global Product

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14.

Discuss the factors that force firms to adapt to local markets needs

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15.

Once a firm decides to enter a foreign market, the question arises as to the best mode of entry.
Firms can use six different modes to enter foreign market. Briefly explain all of them.
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Chapter 11: Global Manufacturing and Materials Management

1.

Define materials management

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2.

Define Total Quality Management

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3.

Identify advantages and disadvantages of outsourcing to reduce internal and external issues in
companies
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4.

Describe elements of a comprehensive supply chain strategy

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5.

Describe how to improve quality control to reduce costs

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6.

Describe the factors that to be considered to choose where to manufacture

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7.

Differentiate between concentration and decentralization of manufacturing facilities

Concentration of manufacturing

8.

Decentralization of manufacturing

Define Global supply chain

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9.

Identify the aspects of TQM

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10.

Identify the reasons why firms do global sourcing

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11.

Discuss the advantages and disadvantages of global sourcing

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12.

Discuss the product factors in considering where international firms should locate their
manufacturing activities.
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13.

Explain advantages of outsourcing to reduce internal and external issues in companies.

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