NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
JANUARY/FEBRUARY 2018 EXAMINATION

COURSE CODE:   BUS 419                                                                           

COURSE TITLE:    International Business              

CREDIT UNIT:           3

INSTRUCTION:        1. Indicate your Matriculation Number clearly

2. Attempt question one (1) and any other three (3) questions; four questions in all

3. Question one (1) is compulsory and carries 25 marks, while the other questions carry 15 marks each.

                                      4. Present all your points in a coherent and orderly Manner

TIME ALLOWED:     2½ Hours

1.Foreign Direct Investment (FDI) occurs when a firm invests directly in facilities to produce or market a product in a foreign country. Explain the theories underlying FDI with particular reference to the arguments of these theories. (25 marks)

2a. International business is considered to be an inevitable activity in the contemporary

      business economy. Why is it so?

2b. Explain the various factors that act as impediment to International trade. (15 marks)

3. Explain how each of the following principles justify international trading among nations.

 i. Principle of Absolute Advantage

ii. Principle of Comparative Advantage

iii. Principle of Factor Endowment                 (15 marks)

4. Discuss the several challenges associated with International Marketing   (15 marks)

5. Both small and large companies are involved in exporting in the contemporary business economy.  

i. Why do they engage in exportation?

ii. Where do they receive counselling for exportation?  (15 marks)

6. Give a brief account of the development of International Business   (15 marks)