MNB3701 Exam Pack.
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MNB3701
MAY /JUNE 2019 Memo
MULTIPLE CHOICES
SECTION A
1. 3 page ref 18-19
2. 2 page ref 56
3. 3 page ref 175
4. 1 page ref 204
5. 4 page ref 220-221
6. 1 page ref 228
7. 4 page ref 91
8. 4 page ref 25-26
9. 3 page ref 103-104
10. 2 page ref 139
11. 3 page ref134
12. 2 page ref 6
13. 3 page ref 117
14. 1 page ref 24-25
15. 4 page ref 8-9
16. 1 page ref 134-135
17. 4 page 82-83
18. 4 page ref 195
19. 1 page ref 165-166
20. 4 page ref 203-204
SUBJECTIVE
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SECTION B
1.1 Elaborate on typical types of information sought by global firm when entering foreign market
The typical type information sought by global when entering foreign market include among others
environmental information, market information, marketing information, customer information,
competitor information logistic and transport information financial information, administrative
information, global risk information, transactional information etc.
The environmental information helps the global business to cope up with the different environment
and environmental barriers.
The market information guides the globe business on how to segment or divide the market into
homogeneous group. This particular information also helps the global business to understand tariff
information, product of competitor, barriers to export and business practice and method.
Marketing information, this information is use in selecting suitable target market to enter and
appropriate marketing strategy to address the need of customers in the market place.
Customer information, this information helps to understand who customers are, what they need,
what drives them to buy and what they are likely to buy. The information also determines demand
level and drive sales.
Competitor information, this information enable the global business to know what other
competitors are doing in the market, what strategy their pursuing, which area competition is intense
and which strategy to use to attract customers
Logistic and transport information, this information enable the global business to get product to its
customers. It informs the global business about means of transport system that are available in the
operation environment which can make good accessible to customer or consumers
Financial information, this information enables the exporter to finance their international operation
and to ensures payment are received for goods supply
Administrative information, this information deals with administrative activities involves in
exporting. It covers obtaining of export permit, documentation, customs clearance and
accompanying payment documentation.
Global risk information, this ensures the risk global business take is worth the effort. International
business has a lot of risk. Risk information will enable the business reduce risk in it operation
Transactional information, this information deals with quota, contract and terms of payment term
etc.
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Further reading, reference page 106- 110
1.2 fully discuss the theory of business ethics
To pursue corporate social reasonability in business there are certain ethical theories that needed to be
given a consideration among them include Friedman doctrine, culture relativism, the righteous moralist,
the naive moralist theories, utilitarian and Kantian theories, right theories and justice theories
In the first place the Friedman doctrine, this theory argued that pragmatism should drive corporate
social responsibilities action of business. The theory state that profit maximization should be the core
activity of the business and such company activity must comply with the rule of law. The theory
suggested that business must reject the idea that business must undertake social expenditure beyond
the level of the business. The Friedman doctrine position on business ethics bring into sharp focus the
role of corporate social responsibilities in business which is tantamount to a firm to giving practical
expression of ethical conviction and behaviour.
Secondly culture relativism, this theory is premised on the conviction that business ethics are primarily a
reflection of a particular culture, in which specific cultural standard and practices are applied. The theory
is logically base on outcome of it application. The theory rejects the notion that morality transcends
different culture. However, the theory cannot be rejected in totality. It is observer that some business
practices may be ethical in some culture while others may not. This is due to differences in societal value,
norms and customs which differ across cultures
Thirdly, the righteous moralist theory approach suggested that home standard of ethics should be apply
in host country where the MNC is operating. The challenge with this approach is that foreign expatriate
are seen as trying to impose their own standard on host country without familiarising themselves with
the finer culture nuance particular to such environment. In such case the MNC will fail to follow
prevailing culture norms and business practice when submitting returns. Tax authorities could see the
organisation or the business as cheating on their tax return when submitting reports. Such behaviour
could work against the interest of the host country operation. In certain instance business practice could
be offensive to local managers in the host country.
Furthermore, naive theory, this is personified by manage working for MNC in the host country by blindly
following business practice of other MNC. Example manager believe that other MNCs do not follow
ethical norms so he can also do so. This behaviour is ethically indefensible regardless whether other
engages in them or not.
The utilitarian and Kantian theories maintain that the moral worth of ethical action or practice is
determined by their consequences. The utilitarian recognise that action spawns multiple consequences.
Some may be good and others may be harmful. The action of business decision maker is to weight up
cost and benefit and decides which action to pursue. The objective may be to focus on the one that yield
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