EXAMINATION PAPER

Faculty of Business and Law

Trimester 1 2021

Deadline: 15 June, 1 AM AEST

Unit Code:                                          MPM735

Unit Name:                                         International Business Management

Exam Name:                                                 Open-book Take Home Online Exam

Anticipated writing time:                  TWO (2) HOURS

Special instructions for Candidates:

• This examination is OPEN BOOK. 
• This examination is open for 24 HOURS from the time the exam is made available online.  No exam will accepted after the exam is closed. Within this period, you can select when you completethe exam.
• This examination constitutes 30% of your assessment in this unit.
• This examination comprises 7 questions.  You are required to answer ALL 7 questions.
• Save your exam response on your computer using the file name: student ID, unit code and the unit name, for example: 216123123_MPM735_International Business Management
• You must type your responses into a single Word document and upload the .docx to the Exam Submission Dropbox on the unit site. Number each question clearly.
• Late submissions will not be marked.
• Remember to save your work regularly.
• It is important that you complete this task individually. Your submission will be reviewedfor the purposes of detecting collusion and/or plagiarism.

Question	Marks	Question	Marks
1	10	5	20
2	10	6	20
3	10	7	20
4	10
Total Available Marks	100

All candidates MUST complete this section

Type your student ID number here:  _________________________________

This paper has TWO (2) Sections. Please answer both sections.

Section A: International Business Environment (40%). Students must answer all questions. Each question is worth 10 marks (4 x 10 marks)

Section B: International Business Strategy (60%).  Students must answer all questions. Each question is worth 20 marks (3 x 20 marks)

Your answers will be judged on the quality of your responses rather than the length of your responses. The quality of your answers will be based on:

• The soundness and comprehensiveness of your responses
• Your understanding and correct application of relevant theories and concepts in international business.
• Clear and logical arguments to substantiate your explanation.

This Exam is worth 30% of your final mark for this subject. The unit has a hurdle requirement, namely:

Achieve at least 50% in the FINAL EXAMINATION.

This means that you must pass the exam to pass the unit. 

MPM735: International Business Management

T1 2021

Section A: (40 Marks). Please answer all questions.

Question 1: (10 marks) (200 words)

Th management of exchange rates is an important consideration in international business and will impact on international business decisions. There are several possibilities of exchange rate systems, including fixed and flexible exchange rate systems.  Compare and contrast the fixed and flexible exchange rate systems and then justify which system in your opinion is the most appropriate for international business. In your answer list the merits and disadvantages of each system.

Question 2: (10 marks) (200 words)

In international business which do you think is more important, culture or strategy?  Watch this video by Scott Brown, which was one of the industry presenters for the MPM735 class and discuss what you think is important in international business – culture or strategy and justify your statements.

Question 4: (10 marks) (200 words)

Regarding international trade theory, Porter’s national competitive advantage theory may help us to think about why some countries may have an advantage in producing, selling and exporting a particular product. Using and applying the theory, highlight one product or service that you think Australia has a ‘national competitive advantage’ in?

Question 4: (10 marks) (200 words)

What are the determinants of economic growth of a country?  In your answer highlight and explain 4 different determinants, and articulate why businesses should be concerned with determinants of economic growth when considering a market for entry?

SECTION B: (60 Marks). Please Answer all questions.

SECTION B is based on the case of Tata Motors.  In SECTION B you will make a recommendation to the Board of Directors of Tata Motors about its entry strategies into Australia.

Tata Motors is India’s largest indigenous motor company, established in 1945. They are a $35 billion organisation and are currently represented in 125 countries of the world, with near on 80,000 employees, having sold nearly 1,000,000 cars over their history, and having around 8400 sales and service points internationally (Tata Motors, 2021).  One of Tata Motors’ recent focus has been on providing electric solutions to the car industry and improving in-car connectivity solutions.    

The Tata Nano was originally launched in 2008 claiming to be the world’s cheapest car being valued at one lakh (100,000) rupees or US$2500 at the time of the launch (Patel, 2015).  This car was originally targeted to entire families that would ride a single motorbike in India and was aimed to be a substitute product. To keep costs low, Tata Motors engaged in several cost-cutting activities, including reducing the amount of steel used in construction, relying on low-cost Indian labour, no air-conditioning, power steering, power windows, airbags or any other modern creature comforts that would generally be offered in cars of today.  Other cost cuttings were achieved through only have one windscreen wiper, and no external fuel cap.  Unfortunately, several problems with the Tata Nano have meant that the car has been unsuccessful in the Indian market, with the statement that the “Nano became rather infamous as the ‘cheapest car’ that few wanted to associate with” (Carwale, 2015).

In 2015 Tata Motors relaunched the Tata Nano GenX (Patel, 2015) in the Indian market with a raft of features and enhancements.  They also have international ambitions for the car, with some interest in the Australian market.** 

Given the concept or idea of the product has its merits; to offer a low-cost car to the Indian and international markets your task in Section B is to develop an entry strategy in the Australian market for the Tata Nano GenX.

** The case is purely hypothetical and is based on publicly available information.  It does not represent what the company Tata Motors are planning to do. 

Question 5: (20 marks) (400 words)

• What type of international strategy do you think Tata Motors should use for entry into Australia with the Tata Nano GenX, out of the four international strategic choices (Internationalisation (home replication), Localisation (multidomestic), Global Standardisation and Transnational strategy)? Justify your recommended strategy.

• What entry mode would you choose for Tata Nano GenX’s market entry into Australia?  Justify your choice of entry mode using Dunning’s eclectic theory, identify how the entry mode might work, and the advantages and disadvantages of that entry mode? 

Question 6: (20 marks) (400 words)

• In terms of international marketing, apply the 4Ps to explain how Tata Nano GenX in Australia maybe marketed in Australia.

• For market entry into Australia, make a recommendation as to what type of staffing policy that you think Tata Motors should use? In your answer explain how the option you recommend might work for the company.

Question 7: (20 marks) (400 words)

Global supply chains are another thing that firms need to consider when operating internationally. Explain to the board of management of Tata Motors what their international supply chain might look like for the Tata Nano Gen X.  Make any important recommendations about the supply chain, and any business tools that they should use to manage it.

• END OF EXAMINATION –

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