0414-324 – International Business – Summer 2026 – BBA 66 – Midterm

1. Explain the key facets of globalization as a multidimensional process of reshaping the world economy and contributing to deep economic interdependence among countries. Use real-world examples to support your explanation. [CLO 1, Level II] (5 Marks) 2. Vietnam and Brazil each have 240 units of resources (labor, land, capital) that can be used to produce either Coffee or Textiles. The resource requirements per unit of output are given below. | Country | Resources Available | Resources per ton of Coffee | Resources per ton of Textiles | | :------ | :------------------ | :-------------------------- | :---------------------------- | | Vietnam | 240 units | 6 | 8 | | Brazil | 240 units | 4 | 12 | Applying the Theory of Comparative Advantage, construct how these two countries can benefit from trading with each other. [CLO 2, Level III] (10 Marks) 3. A multinational apparel company from Europe has recently expanded its operations into South Asia to take advantage of lower production costs and a growing consumer market. But the company is facing challenges in managing its local workforce due to differences in social structure, language, religious practices, and workplace expectations. While local employees prioritize collective decision-making and respect for hierarchy, the firm promotes an individualistic and performance-driven culture. At the same time, the company has been criticized internationally for its environmental impact and poor waste management practices in its overseas factories. As global awareness of ethical sourcing and environmental protection increases, stakeholders are pressuring the company to adopt more sustainable and socially responsible practices across all its operations. a) Analyze the key determinants of culture considering the above scenario (3 No.) which may create challenges for multinational firms when managing employees across different countries. [CLO 3, Level IV] (5 Marks) b) Analyze how sustainability considerations influence the strategic decisions of multinational companies operating in global markets. [CLO 3, Level IV] (5 Marks)