Question 1

As a Global Business expert, discuss the current state of the Chinese and the U.S. economies, highlighting the strengths and weaknesses of each.

Question 2

By examining relevant PESTEL factors, and citing relevant examples, illustrate the reasons why Multinational Corporations are likely to have to adapt their marketing strategy from country to country.

Question 3

Citing theoretical models and practical examples, evaluate the implications of cultural diversity for the leadership and management of employees of multinational corporations today.

Question 4

“Despite the existence of compelling theory and evidence, Globalisation has its critics” (Hill, 2014)
Evaluate the evidence in favor of, and against, Globalisation today.

Question 5

a) “The Euro was a political, rather than an economic, project” [McWilliams]
Discuss
b) “We’re all Keynesians now” [President Richard Nixon]
Discuss the effectiveness of Keynesian and Hayekian economic policies in assisting governments to avoid booms and busts, and to resolve them when they happen.

Question 6

“The financial crisis will happen again, but there will be a different trigger. The only thing crises have in common is human nature” (Alan Greenspan, former Federal Reserve chairman)
Analyze whether the factors that led to the 2008 crash could happen again, and evaluate the likelihood of another major crash happening soon.

Question 7

For the management of Multinational Corporations:-
a) Analyze the challenges of leading and managing a culturally diverse workforce
b) Discuss the prospects of standardizing products/services worldwide

Question 8

“The Euro is far from perfect. It is fragile, vulnerable, and does not deliver the benefit it could if it were completed” [ECB President, Mario Draghi, 2015].
Analyze the “imperfections” of the Euro, with particular reference to the possible creation of a federal state as a means of “completing” it.

Question 9

You are a Global Business Consultant and are asked to evaluate the attractiveness of a potential new market on behalf of a Multi-national Corporation. Identify and discuss the factors to be examined under the following headings:-
a) Political
b) Legal
c) Economic

Question 10

Discuss the failures in Corporate Governance highlighted by the Financial Crisis, and the attempts to improve practices since then.

Question 11

For the management of Multinational Corporations:-
a) Analyze the challenges of leading and managing a culturally diverse workforce.
b) Discuss the prospects of standardizing products/services worldwide.

Question 12

“The Euro is far from perfect. It is fragile, vulnerable, and does not deliver the benefit it could if it were completed” [ECB President, Mario Draghi, 2015].
Analyze the “imperfections” of the Euro, with particular reference to the possible creation of a federal state as a means of “completing” it.

Question 13

You are a Global Business Consultant and are asked to evaluate the attractiveness of a potential new market on behalf of a Multi-national Corporation. Identify and discuss the factors to be examined under the following headings:-
a) Political
b) Legal
c) Economic

Question 14

Discuss the failures in Corporate Governance highlighted by the Financial Crisis, and the attempts to improve practices since then.
2017

Question 15

“The world’s center of economic gravity is shifting towards emerging markets” (Gaspar et al, 2014)
For the emerging market of your choice, construct a SWOT analysis that captures its attractiveness and future prospects, supporting your analysis with evidence.

Question 16

“The Euro was premature, poorly designed and poorly managed”
(McCarthy, 2015)
Discuss.

Question 17

Identify and discuss the business implications of the key Political and Legal factors in the global business environment today.

Question 18

Evaluate the key arguments in favor of, and against, Globalisation, giving evidence in support of your analysis.

Question 19

Write a concise note on two of the following:-
a) The ideological differences between Keynes and Hayek.
b) The implications of national cultural diversity for the international marketing mix.
c) The main criteria to be used when multinational businesses decide how to enter new markets they have decided are attractive.
d) The key success factors for Leaders of international businesses today.

Question 20

“The financial crisis will happen again unless you can show me a cure for human nature” (Alan Greenspan, former Federal Reserve Chairman)
Discuss the causes of the financial crisis in the context of this claim.

Question 21

“Good Corporate Governance is built on the ethics of its individuals” (Christine Lagarde, IMF Managing Director, 2015)
Discuss, in the context of the global financial crisis and the global business environment
201

Question 22

“The world’s center of economic gravity is shifting towards emerging markets” [Gaspar et al, 2014]
For the emerging market of your choice [including the sub-Saharan Africa region]:-
a) Discuss the factors which are driving economic growth and development.
b) Identify the keys to success for foreign firms entering the market.

Question 23

“Today policymakers are caught in a debate between the thinking of two great economists: Keynes and Hayek. This intellectual debate shapes action in terms of choosing either more austerity or stimulus”. [Henton, 2013]
a) Compare and contrast the economic ideologies of Keynes and Hayek.
b) Assess the international response to the Financial Crisis, commenting upon the visibility and effectiveness of each ideology.

Question 24

As a global business expert, you have been asked for advice on global business trends.
Discuss the principal PESTEL factors in today’s global environment, identifying their implications, and citing evidence and examples in support of your analysis.

Question 25

“According to a survey of senior executives, 76 percent believe their organizations need to develop global-leadership capabilities, but only 7 percent think they are currently doing so very effectively”. [Ghemawat, 2013]
Discuss the significance of strong and effective Leadership for international [and crosscultural] businesses today, citing practical examples in support of your analysis.

Question 26

Write a concise note on two of the following:-
a) The claim by American commentator Peter Schiff, that the Dollar is destined to fall sharply in value.
b) The extent to which the Eurozone conforms to the design requirements of a Monetary Union.
c) Strong and weak forms of Corporate Governance you have encountered in this module.
d) The arguments in favor of, and against, globalization and international free trade.

Question 27

“Cultural understanding plays a major role in global business success”
[Bierman et al, 2014]
Discuss the implications of different national cultures for the international marketing of products and services, with particular reference to the need to adapt the marketing mix due to cultural considerations.

Question 28

a) Discuss the key political and legal factors which determine the attractiveness of entering a new international market.
b) As a result, identify markets that you would regard as relatively attractive /unattractive.
2014

Question 29

For any ONE of the BRICS OR MIST emerging economies:-
Assess the viability of a multinational organization, which is entering your chosen market for the first time, deploying a standardized marketing mix that has served them well in other markets.

Question 30

“We conclude a combination of excessive borrowing, risky investments, and lack of transparency put the financial system on a collision course with the crisis”.
[US Commission of Inquiry, 2011]
Identify and discuss the principal causes of the global financial crisis.

Question 31

Discuss the implications of different national cultures for the management of employees by a multinational organization.

Question 32

a) Assess the extent to which the Eurozone conforms to the requirements of an Optimum Currency Area
b) Evaluate the future prospects for the Eurozone

Question 33

Write a concise note on two of the following:-
a) The claim by American commentator Peter Schiff, that banks and other troubled companies should have been allowed to fail, rather than be rescued by Government.
b) The key Legal factors that determine the international market attractiveness.
c) The failures in Corporate Governance models highlighted by the financial crisis.
d) The future economic prospects of sub-Saharan Africa.

Question 34

“Globalisation has made it possible for goods, services, capital, technology, and culture to cross national borders. Yet its value to society as a whole is endlessly argued – it does create winners and losers”
[Gaspar et al, 2013].
Discuss, identifying the drivers of Globalisation, and balancing the arguments for and against Globalisation and Free Trade.

Question 35

“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently”.
[Warren Buffett]
Discuss, with particular reference to the need for international organizations to pursue “good” Ethics and Social Responsibility policies.

Question 1 (Budgeting)

Moriarty Ltd is a small manufacturing company producing two products, W and D. Details for the products are as follows:
Sales forecast for the year to 31^st December 2021

Due to the seasonal nature of the company’s business 30% of the sales are expected to be made in the first six months of the year and the remaining sales in the second half of the year.
The selling price at the beginning of the year is €96 for product W and €108 for product D
Due to increasing costs, the company anticipates that it will have to increase the selling price of both products by 5% from July 1^st.
The following information is also available:

Even though sales are seasonal in nature, production of the company’s products and purchase of materials is spread evenly throughout the year.
It is expected that Raw material B will increase in price by 10% on 1^st September 2021 and an €0.80 per hour pay increase for grade 2 labor will come into effect on 1^st July 2021.
Planned closing inventory on 31^st  December 2020 was:
Product W                   2,800 units
Product D                   1,600 units
Raw material A           42,400 kilos
Raw material B           38,500 kilos
Management plan to reduce all closing inventory by 15% by the end of 2021.
Requirement

• Prepare a sales budget
• Prepare a production budget
• Prepare raw material usage budget
• Prepare a raw material purchases budget
• Prepare a labor cost budget
• Your CEO has heard the term ‘principal budget factor’ mentioned. However, doesn’t understand what it means. Write a brief memo to the CEO explaining the term in the context of the business and give two examples of possible principal budget factors that the company could possibly face in the future.
• These budget assumptions were created in early 2020 (as you see the company budgets well in advance and adjusts if necessary), do you think that the present COVID 19 pandemic may impact these number? If so explain to the CEO what steps may need to be taken and if there are any government schemes that the business could benefit from to assist its cashflow.

Question 2 (Cost Volume Profit)

Online Computer Gaming Ltd has developed new gaming software which is sold online at €45 per unit. Variable labor costs are €25 per unit, variable overheads are €7 per unit and fixed overheads for the year are budgeted at €195,000.
Required:

• Calculate the breakeven point in units and € value for the business.
• How many units will need to be sold in order to produce a profit of €65,000?
• What is the percentage margin of safety if 20,000 units are sold?
• If the company adds an on-line technical advice service which will be charged at a rate of €10 per request and will have variable costs of €5 and will add €50,000 to annual fixed costs, what will be the new breakeven where just 50% of the customer’s avail of the service?
• Briefly discuss the weaknesses of break-even analysis.
• Advise the CEO in a briefing memo whether he should continue to insist on CVP calculations being presented at management meetings.

Question 3 (ABC Costing)

Molloghan Ltd currently uses absorption costing. The following costs have been prepared using direct labor hours as a base for recovering overhead.

The management is currently reviewing the cost accounting policy in relation to overheads and is considering the implementation of an activity-based costing system.
The management accountant has done an activity analysis and divided the overhead cost into the following cost pools and drivers:
     Cost Pools                                                                                Cost drivers
Raw material handling          €28,025          number of material requisitions
Machine set-up costs           €34,400          number of set up hours
Machine related costs          €203,298        number of machine hours
Quality checks                       €70,488           number of inspections
Finishing and dispatch costs  €51,510        number of items
The following information is also available;

*You can assume that the machinery is set up for each batch.
Requirement

• Calculate the cost and profit per unit of the four products using activity-based costing.
• The production manager is an advocate of the introduction of ABC and has said that ‘all companies should adopt it as it will give the true cost of the products produced’.

Your CEO (not a management accountant) is not sure and has asked you to write a brief business memo where you compare the costs and profits for the four products with absorption costing giving possible reasons for the differences between both systems and critically comment on the production managers’ statement.

Question 4 (Traditional Costing)

Aungier Manufacturing Company Ltd. has three production and three service departments.
The primary analysis work relating to factory overhead expenses (such as power, rent, and rates, etc.) has already been done on the overhead analysis sheet which is in preparation for the imminently commencing financial year. This yields the following sub-totals for each department;
Service dept                            €
1                                         3,800
2                                         4,500
3                                         5,300
 
Production dept €
A                                 20,800
B                                 15,200
C                              11,400                                                    61,000
It is now necessary to complete the sheet and compute predetermined absorption rates to be used for the year ahead. A technical assessment for apportioning the costs of the service departments (reduced to percentage terms) gives the following figures:

 
Dept A                    Dept B                         Dept C
Labour hours                 8,000                           5,000                         200
Machine hours are       1,000                            600                         800
Requirement (see c, d & e on the following page)

• Show the remaining work to be done on the overhead analysis sheet by using the continuous allotment/ repeated distribution method of reallocating service department costs.

• Calculate appropriate overhead absorption rates for each department.

A regular product of the company is article Zed, whose prime cost per unit in the most recently concluded monthly accounting period was as follows:
Direct material
10kg. Raw Material X @ €12.25                             122.50
5kg. Raw Material Y @ €13.44                              67.20                                    189.70
 
Direct labor
3hrs Dept A @ €10                                                     30.00
1.5 hrs Dept B @ €8                                                   12.00
1hr Dept C @ €6                                                     6.00                        48.00
237.70
Machine utilization is expected to be :
Dept A                        4 hours
Dept B                        1 hour
Dept C                        2 hours
Administration and selling and distribution overhead came to €50 per unit.
Requirement

• Compute an expected production cost per unit in the upcoming year using the absorption rates you have selected in part (b) above.

Assume at the end of the period that actual overheads in Dept B were €20,438 and actual labor hours were 4,820 and actual machine hours were 1,110.

• Prepare and overhead control account for Dept B clearly explaining the reason for any under or over absorption.

• Your CEO has been reading about traditional costing and other cost measures. You have been asked to write a memo outlining whether traditional costing is the correct costing approach for the company. You are also asked to explain the reasons for preparing pre-determined overhead absorption rates based on budgeted information rather than actual overhead figures.

Question 5 (Marginal Costing)

Shedworld Ltd manufactures garden sheds. The company has always used an absorption costing system, but at a recent conference, the Managing Director discovered that many businesses use a variable costing system for internal reporting purposes. The Managing Director is unclear on the differences between absorption costing and variable costing and accordingly, is seeking your advice. Shedworld makes substantially more sales in the spring and summer months which involves building up stocks in the early months of the year.
The Managing Director has presented you with the following information regarding the company’s activities in 2019
Budgeted information for 2019        Per unit
Direct materials                                      4 meters * €9 per meter
Direct labor                                                2 hours * €10 per hour
Variable manufacturing overhead             €15
Variable selling overhead                          €8
Budgeted fixed overheads for 2019
Manufacturing                            €100,000
Selling                                         €145,000
The normally expected production volume per annum is 10,000 units.
The actual production for 2019 amounted to 10,600 units. The sales volume achieved for the year was 11,500 units with a unit selling price of €200. The actual fixed manufacturing overhead was €130,000 and fixed selling overhead was €145,000. All variable costs per unit were incurred as budgeted.
The opening stock of finished goods on 1^st Jan 2019 consisted of 3,000 units valued at €260,000 which included €30,000 with respect to fixed manufacturing overhead.
Requirement

• Prepare an operating profit statement for Shedworld for 2019 using
• Absorption costing
• Marginal/variable costing
• Referring to (a) above reconcile the operating profit as shown in the absorption costing statement and the marginal costing statement.
• Write a brief memo Advising the Managing Director as to the potential advantages and disadvantages of adopting marginal costing profit  statements for internal purposes compared to absorption costing and give your advice whether you believe marginal costing would be suitable for Shedworld.