BSN International Management

Theory Test

Date: June 2015

Set: N 69
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Theory Test: International Management

Introduction
The examination which follows contains questions that will test knowledge and insight, application of knowledge,
demonstration of insight, and your capacity to formulate judgment based on complete, incomplete or limited
information.

As a BSN Student you must demonstrate both understanding of the appropriate theory contained in the questions,
as well as demonstrate your ability to convey and apply conclusions elicited from the underlying knowledge to your
own organisation, in a clear and explicit manner.

You must ensure that your answers are sufficiently well motivated and supported by the relevant theory.

Plagiarism
You are reminded that plagiarism is a serious offence and BSN assessors are instructed to report any student who
they suspect of such practices directly to BSN. Therefore, you must cite all references quoted and you must ensure
that you do not simply recite the content of an article or the textbook.

You are referred to the programme Education and Examination Regulations (EER) as well as the supplementary
document “How to prevent plagiarism” in order to understand what constitutes plagiarism.

Instructions for Submission

- Combine all your answers in a neatly typed document, paying sufficient attention to style, lay-out,
vocabulary etc.
- Use figures, images, graphs etc. at your own discretion (and of course where a question specifically
requires you to do so).
- Add a cover page, stating:
o Name
o Title of the course
o Date of submission
o Set number
o Version number of the test: v 1506
- For ease of reference, first copy the relevant (part of the) question in your document followed by your
answer.
- The deadline for this test is set on: 22 January 2016
- Send the completed document (answers) before the deadline to: registrar@bsn.eu

Note on the scope of your document

The questions are verbalised in a manner that requires you to thoroughly deliberate, identify and reflect on what is
being asked, which involves extensive research of the literature. Whilst, as a consequence, such questions result in
in-depth responses, you are at the same time supposed to remain focused on the essentials. Hence, when an
answer to a particular question is likely to exceed the 1,500 words, you are expected to critically reconsider what you
have written so far and cut down on the amount of text. For the sake of clarity; the less text you need for a
comprehensive answer, the better.

Instructions for Completion

1. Answer all questions below.
2. Do not simply cite from the articles or textbooks and journals – you are required to demonstrate insight in
terms of the theory and understanding in terms of its practical application within your own organisation.
3. BSN assessors will be looking for creativity as well as insight and understanding and you should present
your suggestions / recommendations and ideas for improvement together with your detailed motivation.
4. Make sure that you read each question carefully before answering and focus on the keywords (discuss /
critically evaluate / analyse / demonstrate, etc) contained in the questions.
5. An overall score for this test of at least 55 marks is required in order to pass.
6. The maximum word count should be in the region of 10,000.
7. Questions carry an equal weighting of 10 marks.
8. Total marks: 100.

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Test Questions

Question 1

(a) Why would a company in a particular country decide to export its products and/or services to companies
in other countries?

(b) Ask your manager why your company exports to companies in other countries and summarise and
explain these reasons. If your company does not engage in export, ask your manager to explain the reasons
for this. Summarise and explain these reasons.

Question 2

(a) Why do some companies become Multi-National Enterprises?

(b) Can the decision to become a MNE be seen as part of a company’s risk management strategy?

Question 3

What are the special factors that a MNE would have to consider in operating its international business that a
firm operating in only one country would not have to consider? Explain why these factors are important.

Question 4

(a) Why do international managers have to be strongly aware of the “balance of payments” for each country
with which they do business?

(b) Why are foreign exchange markets important for MNEs?

Question 5

Identify, and explain, 3 specific examples of each of the Political; Economic; Social; and Technological
variables that your company has to consider when deciding whether or not to engage, or to continue, in
international trade.

Question 6

(a) Why might ignorance of certain customs be enough to prevent a highly favourable deal from being
successfully negotiated by your company with another company in another country? Look at this from the
point of view of both companies.

(b) Identify and explain the five most important elements in a “cultural sensitivity” training programme for a
MNE?

Question 7

Identify and explain the costs and benefits for a company of a strategy of international outsourcing of some
of its production.

Question 8

(a) Explain the six “screening” steps that a MNE will follow in making an international market assessment

(b) Explain the “four Ps” of marketing as they apply to a MNC.

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Question 9

“Just obey the law and pay your taxes”! Is this enough guidance for a MNE to be accepted in each country in
which it operates? Explain your answer fully.

Question 10

Any business organisation will be directionless unless it has a carefully considered commercial strategy.
Such a strategy, however, must be dynamic in the sense that it is adjusted if important variables change.

Suppose that a company found (1) that its international markets were being challenged by a new “low price”
competitor, and (2) that the government in the country in which it had its head office decided to prevent the
employment of foreign nationals in this head office. How might this company adjust its strategy to respond to
these changes?

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APPENDIX 1

The Dublin Descriptors

The five Dublin descriptors are summarized below and are linked to BSN’s 12 exit learning outcomes for an
MBA which are listed in Appendix 2.

1. Knowledge and Insight:

Has demonstrable knowledge and insight, which exceed and/or deepen the level of Bachelor and at
the same time offer a basis or chance to offer an original contribution to the development and/or
implementation of ideas, often in the context of research (BSN exit learning outcomes 1, 2, 3, 6).

2. Applying:
Is capable of applying knowledge and insight and problem-solving abilities in new or unknown
circumstances within a wider (or multidisciplinary) context that is related to the profession; is
capable of integrating knowledge and dealing with complex matters (BSN exit learning outcomes
1,2,3,4,6).

3. Formation of a judgement:
Is capable of formulating a judgement based on incomplete or limited information and thereby
taking into account the social and ethical responsibilities that are connected to the application of
own knowledge and judgements (BSN exit learning outcomes 1,7, 10, 12).

4. Communication:
Capable of conveying conclusions, as well as the underlying knowledge, motives and
considerations in a clear and explicit manner to an audience of experts and non-experts (BSN exit
learning outcomes 1.5.6.8.9).

5. Learning skills:
Possesses learning skills that enable him or her to start a follow-up course with a mainly self-driven
and autonomous character (BSN exit learning outcomes 10, 11).

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APPENDIX 2

BSN’s Learning Outcomes

1. Strategic policy development

The development of or contribution to a challenging organisation strategy based on conceptual and
visionary skills and taking into considerations recent and future developments. Is capable of formulating
and implementing future plans in such manner that it creates support both within and outside the
organisation.

2. Improving/developing working methods

Independently developing and/or improving a work method whereby the approach shows insight in both
research methods and work processes and whereby the result leads to demonstrable improvement in
efficiency, quality, flexibility and sustainability.

3. Policy development / implementation Year plan

Contributing to, developing and realising of policy targets related to business (professional) problems or
challenges, thereby taking into account the connection between strategic, structural and cultural aspects
of the organisation and anticipating future changes (internal and external).

4. Entrepreneurship
Developing and utilizing business opportunities for both new and existing products / services. Also
stimulating and supporting such a pro-active, entrepreneurial attitude of co-workers / colleagues. Being
capable of assessing risks and daring to take risks.

5. Leadership
Judging the effects and quality of own leadership style at any desired moment within any context. Is
capable – if necessary – to adjust in a natural way and does this in such a manner that co-workers
consistently receive the correct guidance/direction in the light of both task fulfilment and motivation.

6. Decision-making
Independently integrating of relevant scientific insights, theories and concepts from the practice. Can
generate new insights and solutions based on that and on behalf of complex, multidisciplinary problems.
Can present these convincingly and have them implemented.

7. Ethical responsibility
The justification of own actions based on professional attitude which shows concern for normative
cultural aspects, respect for others and regard for the social (living) environment. Lays down conditions
in the organisation to enable this responsibility and stimulate it internally.

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8. Cooperation
The integration of relevant knowledge and skills with which all desired roles within the team can be filled
and which contributes to growth (individually or as a group) and to realisation of set targets.

9. Communicating
Conveying information and conclusions in a convincing and understanding way and, if necessary, the
recommendations and developed implementation plans that follow from this. Can also choose for the
most applicable form of communication tuned to the target group, kind of information and anticipated
effect. Is capable of accurately reformulating received messages irrespective of the form of
communication.

10. Analysing, information-processing and problem-solving abilities

Can manage problem-solving teams. Following a structured decision-making approach whereby the
participants are stimulated to participation. Utilizing existing, relevant theories and seeing to sufficient
acceptance of the implementation of the decision.

11. Learning and personal development

On own initiative integrating of existing knowledge with new, complex and abstract information from
various sources. Hereby taking responsibility for further development of learning experiences and
reflection thereupon. Deciding on possibilities for improvement and independently developing a learning
route with which this can be realised.

12. International awareness

Analysing of relevant complex patterns and trends in the international business world. Also based on this
one is capable of formulating recommendations regarding the (im-) possibilities in the field of doing
business internationally and where necessary organising the execution thereof.