BMA734 International Business Management Assessment 3

Part 1: Essay Questions You are required to choose TWO (2) out of Five (5) questions to answer
1. Emerging markets attract inward foreign direct investment (FDI) due to their low cost advantages and significant market potential. Recently, we are also seeing an increasing volume of outward FDI from emerging markets. Why are these emerging market firms investing overseas despite their home market attractiveness and their lack of international experience? Please discuss the firms motives and viable strategies of emerging market firms conducting FDI overseas. 2. According to the website of Starbucks Australia, it says Starbucks does not franchise operations and has no plans to franchise in the foreseeable future. As an exception, Starbucks may enter into licensing arrangements with companies who provide access to real estate which would otherwise be unavailable such as airport locations, major food services corporations and hospitals. Please discuss the reason, benefits and drawbacks of Starbucks adopting such a strategy.

3. Despite the benefits of economic integration, the European Union is currently experiencing considerable economic and political problems. What is the future of regional economic arrangements such as the European Union? In your answer provide examples and give a critique of the various types of regional economic arrangements and their prospects for success.

4. U.S. law protects women from job discrimination, but many countries do not offer women such protection. Suppose several important job opportunities arise at overseas factories owned by your firm. These factories, however, are located in countries that severely restrict the working rights of women, and you fear that female managers will be ineffective there. As a HR manager, should you adopt gender-blind selection policies for these positions? Does it make a difference if you have a good reason to fear for the physical safety of your female managers? Does it make a difference if the restrictions are cultural rather than legal in nature?
5. Discuss the reasons why international business is much more complex today than it was 20 years ago.

Part 2: Case Study You are required to read the case A taste of honey and answer the following questions.

1. Based on the information provided in the case study, make a recommendation on which of the two markets, Malaysia or South Korea, the New Zealand Honey Co. should consider entering. Justify your reasons.

2. What market entry strategy would you recommend New Zealand Honey Co. utilise to enter that marketplace? Why?

3. Explain the export issues that will need to be addressed before New Zealand Honey Co. can enter the market you have recommended?