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  BMG306/05 Introduction to International Business Instructions:       Assignment 2 contains TWO (2) questions and you are required to answer ALL questions

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BMG306/05 Introduction to International Business

Instructions:

 

 

 

1. Assignment 2 contains TWO (2) questions and you are required to answer ALL questions.

 

2. Assignment 2 carries 25% of your final total marks.

 

3. The assignment should be typed using Arial, font size 12 and double spaced, approximately 2000-4000 words and in essay format.

 

4. The deadline for the submission of Assignment is 20th October 2020, 11:59pm. A softcopy should be submitted via Online Assignment Submission System.

 

5. Students are highly encouraged to passage their Assginment to the Turnitin system before submission, to encourage honest academic writing and it is not mandatory except for Project courses.

 

 

Question 1

1. Explain using suitable examples Michael Porter’s National Competitive Advantage Theory.

 

Guidelines:

 

 Michael Porter’s theory of National Competitive Advantage explains why some countries are leaders in the production of certain products. For example, Japan is known for its automobile industry and USA is known for its technology.

Porter believes that are four key factors that determines a country’s competitiveness in a certain industry and also two other factors that also play an important role in country’s industry that has a competitive advantage.

What are these six factors? Using appropriate examples to explain these factors.

 

(25 marks)

 

 

(b) Read the case study and answer the questions that follow

 

Logitech

Best known as the world’s largest producer of computer mouse, Logitech was founded in Switzerland by two Italians and one Swiss in 1981. Logitech has made a name for itself as a technological innovator in the highly competitive business of computer peripherals. It was the first company to introduce a mouse that used infrared tracking and wireless mouse and keyboard. Logitech is differentiated from its competitors by its continuing innovation, high brand recognition and strong retail presence. It has also configured its global value chain to lower production costs while maintaining the value of those assets that lead to differentiation.

Logitech’s basic R&D work is still done in Switzerland where it has around 200 employees. The corporate headquarters is now located in Fremont, California which is also its headquarters for global marketing, finance and logistic operations. Fremont is located close to many of America’s high-technology enterprises where it has 450 employees. R&D work is also carried out in Fremont. The ergonomic design is done in Ireland by an outside design firm and most of the manufacturing of Logitech’s products are carried out in Asia.

Logitech’s expansion into Asia began in 1980s when it opened a factory in Taiwan. At that time Logitech was trying to win a contract with Apple Computers. To attract Apple, Logitech not only needed the capacity to produce at high volume and low cost, it also had to offer a better designed product. The solution was to manufacture in Taiwan. Cost was also a factor in the decision.

Taiwan offered a well-developed supply base for parts, qualified people and a rapidly expanding local computer industry. As an inducement to fledgling innovators, Taiwan provided space in its science-based industrial park in Hsinchu. Soon after, Logitech won the Apple contract.

(Source: Global Business Today, C.W. L. Hill, (2008) Mcgraw-Hill, pg 188) 3

 

 

(i) Using Porter’s theory of national competitive advantage, explain the choice of Taiwan as a major manufacturing site for Logitech.

 

Guideline:

 

 The case study shows how the National Competitive Advantage Theory can be applied to explain Logitech’s strategy.

 

Requirement : 4 points & 3 factors with explanations

 

(16 marks)

 

(ii) Provide your opinion as to why Logitech moved its corporate headquarters to Fremont, California from Switzerland.

 

Guideline:

 

 The case study shows how the National Competitive Advantage Theory can be applied to explain Logitech’s strategy.

 

Requirement : 3points and explanations

 

(9 marks)

 

 

Question 2

 

(a) Many governments such as India and South Korea impose currency restrictions to achieve several goals. Explain these goals.

 

Requirement: 4 points and explanations

 

(20 marks)

 

(b) Provide three (3) examples of government policies for restricting currency convertibility.

 

Requirement: any government, 3 points explanations with 3 examples

 

 

(12 marks)

(c) Describe the functions of the International Monetary Fund

 

Requirement: 9 points with explanations & reference

 

(18 marks)

 

IMPORTANT:  only allow 8 – 10 references (APA style)

                          Turnitin allowed below 25% (Pass Mark : 90)

                          Max word 5,000 words