Compiled by Tello Email: Mobile:0717513144
INTERNATIONAL BUSINESS [INT4801] ASSIGNMENT 3.
UNIQUE NUMBER: 883741
0717513144 Page 1
, Compiled by Tello Email: Mobile:0717513144
Table of Contents
1. Highlight the foreign market entry modes available to firms that want to
expand internationally. Discuss these modes of entry and explain the mode of
foreign market entry that MTN adopted to enter the Iranian mobile market.
Premise your answer on appropriate theory. (20 marks) ................................. 4
Introduction. .................................................................................................. 4
Foreign market entry modes. ..................................................................... 4
Franchising ................................................................................................ 5
Exporting .................................................................................................... 6
Licensing .................................................................................................... 7
Conclusion. ................................................................................................... 8
2. Using relevant international business theories, justify the major motives
behind divestment. Conversely, under what circumstances will acquisition be
a logical strategic approach in international business context? (20 marks) ..... 9
Introduction ................................................................................................... 9
Acquistion ..................................................................................................... 9
National competitive theory ........................................................................ 9
Global Strategic Rivalry Theory ............................................................... 10
Divestment .................................................................................................. 10
Product life cycle. ..................................................................................... 10
Comparative advantage. .......................................................................... 10
Conclusion. ................................................................................................. 11
3. You are appointed chief financial officer of a company involved in
international business. Explain how you will take into account the differences
in accounting standards and control systems of the various countries you will
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, Compiled by Tello Email: Mobile:0717513144
be involved with. (25 marks). ......................................................................... 12
Introduction. ................................................................................................ 12
General Accepted Accounting Standards (GAAP). .................................. 12
International Financial Reporting Standards (IFRS)................................. 13
Control systems .......................................................................................... 13
Detective Internal Controls ....................................................................... 14
Corrective Internal Controls ..................................................................... 14
Preventative Internal Controls. ................................................................. 14
Conclusion .................................................................................................. 15
4. Taking into account the relevant tax principles, critically discuss ways in
which an organisation involved in international business can manage costs
reduction and tax obligations. [15] ................................................................. 16
Introduction. ................................................................................................ 16
Economic Efficiency ................................................................................. 16
Distribution of tax burdens. ...................................................................... 17
Easy of administration and compliance.................................................... 17
Bibliography ................................................................................................... 19
0717513144 Page 3
INTERNATIONAL BUSINESS [INT4801] ASSIGNMENT 3.
UNIQUE NUMBER: 883741
0717513144 Page 1
, Compiled by Tello Email: Mobile:0717513144
Table of Contents
1. Highlight the foreign market entry modes available to firms that want to
expand internationally. Discuss these modes of entry and explain the mode of
foreign market entry that MTN adopted to enter the Iranian mobile market.
Premise your answer on appropriate theory. (20 marks) ................................. 4
Introduction. .................................................................................................. 4
Foreign market entry modes. ..................................................................... 4
Franchising ................................................................................................ 5
Exporting .................................................................................................... 6
Licensing .................................................................................................... 7
Conclusion. ................................................................................................... 8
2. Using relevant international business theories, justify the major motives
behind divestment. Conversely, under what circumstances will acquisition be
a logical strategic approach in international business context? (20 marks) ..... 9
Introduction ................................................................................................... 9
Acquistion ..................................................................................................... 9
National competitive theory ........................................................................ 9
Global Strategic Rivalry Theory ............................................................... 10
Divestment .................................................................................................. 10
Product life cycle. ..................................................................................... 10
Comparative advantage. .......................................................................... 10
Conclusion. ................................................................................................. 11
3. You are appointed chief financial officer of a company involved in
international business. Explain how you will take into account the differences
in accounting standards and control systems of the various countries you will
0717513144 Page 2
, Compiled by Tello Email: Mobile:0717513144
be involved with. (25 marks). ......................................................................... 12
Introduction. ................................................................................................ 12
General Accepted Accounting Standards (GAAP). .................................. 12
International Financial Reporting Standards (IFRS)................................. 13
Control systems .......................................................................................... 13
Detective Internal Controls ....................................................................... 14
Corrective Internal Controls ..................................................................... 14
Preventative Internal Controls. ................................................................. 14
Conclusion .................................................................................................. 15
4. Taking into account the relevant tax principles, critically discuss ways in
which an organisation involved in international business can manage costs
reduction and tax obligations. [15] ................................................................. 16
Introduction. ................................................................................................ 16
Economic Efficiency ................................................................................. 16
Distribution of tax burdens. ...................................................................... 17
Easy of administration and compliance.................................................... 17
Bibliography ................................................................................................... 19
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