International Marketing 2015 November Knec Past Paper

1. (a) Explain the limitations of the theory of comparative advantage as applied in International trade. (8 marks)
(b) ABC Company Limited recently expanded its marketing operations to foreign markets.
Describe the tools of public relations that it could use to promote its business in these countries. , (12 marks)
2. (a) Explain six reasons that may make a country to impose restrictions on its trade with other countries. (12 marks)
(b) Outline the ways in which the natural environment in a country may influence the operations of a marketing organisation. (8 marks)
3. (a) A certain country has indicated its willingness to join the East African common market.
Explain the benefits that may accrue to the country from joining the common market. (10 marks)
(b) Wajuzi Limited, a local company is planning to venture into the international marketing arena. Highlight the decisions that the company should make before taking the venture. (10 marks)
4. (a) Explain the factors that may affect transfer pricing in international transactions. (10 marks)
(b) Ambezi Limited intends to enter into an emerging market with a wide range of products. Explain the demographic factors that the company should consider before venturing into the market. (10 marks)
5. (a) Explain the benefits that accrue to a country by joining a monetary union. (12 marks)
(b) XYZ limited is a global company that uses matrix organisation structure. Highlight the problems that it can face from using such a structure. (8 marks)
6. (a) Explain the cultural problems that hinder collection of data in international marketing. (8 marks)
(b) Country Z has developed a policy for attracting foreign multinational companies into its market. Outline the ways in which the multinational companies would positively impact on the economy of that country. (12 marks)
7. (a) Explain five methods of payments that a firm can use to effect payments for its imports. (10 marks)
(b) Many multinational firms are increasingly adopting outsourcing as a way of conducting their marketing activities. Highlight the factors that may account for this trend. (10 marks)

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