Draft 1

Sample exam questions

- Ethics and Corporate Social Responsibility

All questions must be answered in relation to your chosen organization and/or

its industry sector as defined in your 'organization! industry profile'.
These are 'short-answer questions so think about how much you can write in
15-20 minutes. The marking scheme awards marks for relevance, application
and originality so avoid irrelevance, generality and unoriginality.

I. In relation to your chosen organization and/or industry sector what in your

opinion are the most important and/or difficult ethical issues?

2. In relation to your chosen organization and lor industry sector, what are the
main ethical and business arguments in favour of 'corporate social
responsibility'?

3. What is meant by 'corporate social responsibility'? Illustrate your answer

with examples based on your chosen organization and/or industry.

4. What are some of the main argument for and against 'corporate social
responsibility'? Illustrate your answer with references to your chosen
organization and/or industry.

5. In relation to your chosen organization and/or industry who are the main
'stakeholders' and how do they compare in terms of power and interest?

6. Draw a power-interest matrix giving positions for the main stakeholders of

your chosen organization and/or industry and give some justifications for
their positioning.

7. Attitudes to what constitutes corruption vary from culture to culture. How

does this affect business practice for your chosen organization and/or
industry?

8. How do attitudes to COlTUption vary from country to country and how do

these differences affect business practice for your chosen organization and or
industry.

9. Ethical standards vary from culture to culture. How do such differences

affect your chosen organization and/or industry?
 Draft 1

IO.Using examples discuss some of the major ethical challenges that

globalization presents to business and in particular to your chosen
organization and/or industry.

II. "Ethno-centrism" and "cultural relativism" are different approaches to

ethical considerations. Using examples based on your chosen country,
organization and/or industry, illustrate how these two approaches differ.

12.The United Nations considers that child labour infringes the basic human
rights of children and should be banned. How do issues of child labour
apply to your chosen country, organization and/or industry?

I3.How do ethical considerations apply to labour standards and labour rights

and how might such considerations affect your chosen organization and/or
industry?

14.How does your chosen country score on the Transparency International,

'Corruption Perception Index' and what are the implications of this for your
organization and or industry?

IS.How does your chosen country score in terms of human rights abuses and
how does this affect your chosen organization and/or industry?

16.The United Nations' Global Compact identifies four main areas of ethical
concern in relation to business: ecological environment, corruption, labour
standards (including child labour) and human rights. Discuss, with examples,
one of these in relation to your own organization and/or industry.

17.In relation to your chosen organization/industry discuss the relevance of eco-

environmental issues to corporate social responsibility.
Sample short-answer questions - Lecture 2 Introduction
All questions must be answered in relation to your chosen organization and/or its industry
sector as defined in your 'organization! industry profile'.
These are 'short-answer questions so think about how much you can write in 15-20 minutes.
The marking scheme awards marks for relevance, application and originality so avoid
irrelevance, generality and unoriginality.

1. For your chosen organization and/or its industry sector what are the main
inputs, outputs and processes?
2. For your chosen organization and/or its industry sector outline the main
external, internal, task and general environmental factors which would need
to be considered by a potential outside investor when making a major
investment decision.
3. Explain how some of the major operational and/or operational environmental
factors impact on functional areas within your chosen organization or
organizations in your chosen industry sector.
4. In relation to your chosen organization and/or its industry sector explain in
general terms what meant by the various PESTLE-C categories? For each
category give at least one organization/industry-specific example.
5. In relation to your chosen organization and/or its industry sector briefly
explain one of the forces in Porter's Five Forces Analysis. Illustrate your
answer with organization/industry-specific examples.
6. In relation to your chosen organization and/or industry-sector explain the
different types of substitution that could occur. Be as organization/industry-
specific as possible.
7. What are the main conditions for competitive rivalry in an industry and how
do they apply to your chosen organization and/or industry sector?
8. In relation to your chosen organization or industry what are the main barriers
to entry which limit new entrants into the industry?
9. In relation to your chosen organization and/or its industry sector briefly
explain one of the forces in Porter's Five Forces Analysis. Illustrate your
answer with organization/industry-specific examples.
10. In relation to your chosen organization or an organization in your chosen
industry how strong are the forces of supplier-power and buyer-power?
1l.Explain how some ofthe major operational and/or operational environmental
factors impact on functional areas within your chosen organization or
organizations in your chosen industry sector.
Draft

Sample short-answer exam questions

- Lecture 3 Globalization
All questions must be answered as far as possible in relation to your chosen organization
and/or its industry sector as defined in your 'organization! industry profile'.
These are 'short-answer questions so think about how much you can write in 15-20 minutes.
The marking scheme awards marks for relevance, application, quality and originality so give
your best answer avoiding irrelevance, generality and unoriginality.

I. What is meant by the term 'globalization'? Illustrate your answer with references to your
chosen organization or industry.
According to Held et al (1999) globalisation is "the widening, deepening and speeding up of
worldwide interconnectedness in all aspects of contemporary social life, from the cultural to
the criminal, the financial to the spiritual". The main indicators of globalization are trade and
foreign direct investment (FDI). There has been a recent rapid increase in international trade
from 1950 to now (more than 27 fold). FDI is the investment by a firm based in one country
in production and/or operating capacity in another country (i.e. not mere 'portfolio
investment'). The major players in this expansion of international trade and in the even
greater increase in FDI are the multinational or transnational corporations (MNCs or TNCs).
These increases have led to increased economic interdependency on a global scale but
globalization is also manifested by increased political, legal, technical, social, cultural and
ecological interdependency.
The trade in cocoa has long been highly internationalized beginning with the arrival of cocoa
beans in Spain in 1585 and the long-term existence of major cocoa exchanges in New York
(est. 1925), London, Amsterdam and Hamburg. The trade in chocolate has been far less
internationalized this is partly evidence by the fact that the major brands of British,
American and 'European' chocolate have been very distinct. In recent years the chocolate
producers have sought to extend their sales into more distant markets. Cadbury's 2008
company report emphasised the company's increasingly global position and its strength in
developing economies. It has been argued that Kraft's takeover of Cadbury was prompted by
Kraft's desire to quickly increase its strength in global and developing markets.
We can expect that the chocolate industry and markets will become increasingly globalised
over the next few years leading to a wider range of chocolate choices for consumers and
perhaps an increased convergence of tastes and preferences.
Draft

I. What are the main indicators of globalization? Illustrate your answer with references to
your chosen organization or industry.
The two main indicators of globalization are international trade flows and international
capital flows. These two have resulted in greatly increased economic integration and
interdependency. Other important indicators of globalization are increased political, legal,
socio-cultural, and ecological integration. Since 1950 international trade had increased by
more than a multiple of27. This was over three times the increase in world economic
activity. Over an even shorter period foreign investment ('direct' and 'indirect') has increased
even more rapidly than the increases in trade.
According to UNCTAD world production and grindings of cocoa beans has increased from
Imn. tonnes in 1960 to an estimated 3.5 mn. tonnes in 2005. [In order of annual production
size, the eight largest cocoa-producing countries at present are Cote d'Jvoire, Ghana,
Indonesia, Nigeria, Cameroon. Brazil, Ecuador and Malaysia. These counllies represent 90%
of world production. (The major exporting countries do not include Brazil or Malaysia as
these coulllries consume their own production and Brazil also impOlts cocoa.)]
Although cocoa is largely produced in developing countries, it is mostly consumed in
industrialized countries. [The following countries are in order the major conswners of cocoa:
U.S.A (32.7%), Germany (11.6%), France (10.3%), Britain (9.2%) and Russia (7.7%).] For
cocoa, the buyers in the consuming countries are the processors and the chocolate
manufacturers.
A few multinational companies dominate both processing and chocolate manufacturing. The
main companies for the production of industrial and speciality chocolate are led by Barry-
Callebaut with 51 % of the market [followed by ADM with 11 %. The mass-market for
branded chocolate is dominated by large international food companies and the largest three
chocolate producers Nestle (27%). Fe\Tier (17%) and Cadbury (15%) accounted for 58% of
the market in 2003. With the rccent takeover by I':raft of Cadbury raises Kraft's share to 28%.
If we combine the illClustrial and consumers markets the top three producers (Barry-
Callebaut), Nestle and AVlil) together had 58°,'0 of Ule market in 2003.] Barry-Callebaut is the
product of a merger between a Belgian firm and a French firm but the company is now
registered on the Swiss stock exchange. The company has a full range of production, sales
and development facilities located in 26 countries including Europe, North and South
America, Africa, India, China and Japan. The company claims to be the only fully integrated
chocolate company operating on a global scale.

(N.b. Barry-Callebaut may be a better choice than Cadbury. www.barry-callebaut.com)

Draft

2. Recent rapid increases in world trade are a major indicator of globalization. To what
extent is this reflected in the trade statistics for your chosen industry?
3. Recent rapid increases in foreign direct investment (F.D.r.) are a major indicator of
globalization. To what has F.D.J. affected your chosen organization and/or its industry?
Draft

4. Briefly explain what are some of the main drivers of globalization. Illustrate your answer
with references to your own chosen organization, industry and/or country.
The main drivers of globalization are economic, political and technological. Economic
factors include economies of scale and the access to cheaper inputs. Technological factors
include improved and cheaper transportation and communications.
Economic factors include economies of scale and the access to cheaper inputs. Economies of
scale are when a larger scale of production results in lower unit costs. Finns will seek to
expand their markets in order to increase the scale of their sales, allowing increased
production, lower costs and increased competitiveness. This pushes the finns to
internationalize and globalize their operations. Access to cheaper inputs can also lower
production costs particularly the availability of cheap labour. Cocoa processing and chocolate
production are both industries that are likely to benefit from economies of scale.
Political factors include the role of the World Trade Organization (WTO) in reducing tariff
barriers to trade. The WTO, and before it GATT, exists to reduce the barriers to trade first in
goods and more recently in services. This reduction of tariff barriers makes it much easier to
trade abroad. Most countries are now members of the WTO which means that they cannot
discriminate against other member states. The collapse of communism in Russia and Eastern
Europe, and opening-up ofthe Chinese economy have also contributed to trade liberalization.
Something which is likely to be beneficial to the chocolate industry is the international
standardization offood quality regulations. Certainly the agreement of the EU to allow
vegetable fats in chocolate (2002) was beneficial to British chocolate producers but
detrimental to cocoa producers.
Technological factors include improved and cheaper transportation and communications.
Ships are larger and more efficient. The world-wide web (WWW) makes global
communications almost instantaneous and allows for the rapid transfer oflarge amounts of
data. These facilitate trade but also make possible integrated global production. Barry-
Callebaut the world's largest chocolate producers claims to be a fully integrated chocolate
company operating on a global scale and will have benefited considerably from improved
transportation and communications.
Draft

5. Political and regulatory liberalization are a major driver of globalization. With references
to your own chosen organization and or industry briefly explain how this is so.

6. Economic factors are a major driver of globalization. With references to your own chosen
organization and or industry briefly explain how this is so.

7. Technological change is a major driver of globalization. With references to your own

chosen organization and or industry briefly explain how this is so.

8. The 'triad' countries continue to dominate world trade and FDI but there is an increasing
challenge to this position from China, India and to a lesser extent from Brazil and Russia.
How do these affect your chosen organization and/or industry?

9. Briefly explain what are some of the main barriers to globalization. Illustrate your
answer with references to your own chosen organization, industry and/or country.

10. MNCs/TNCs are major actors in the globalization process. How do the activities of
MNCs/TNCs relate to your organization and or industry?

11. How impo11ant are MNCs/TNCs and FDI to your chosen organization and/or industry?

12. To what extent is your chosen organization or industry globalized?

13. The main aim ofthe World Trade Organization is to encourage the expansion of
international free-trade. How have the activities of the WTO affected your chosen
organization and/or a finn(s) in your chosen industry sector?

14. Give a brief explanation of the role of a regional trade agreement or regional trading bloc
and how it affects your chosen organization, firms in your chosen industry sector or the
country in which your chosen firm or chosen industry is based or trades.

15. When considering barriers to trade we make a distinction between tariff barriers and non-
tariff barriers. Explain what is meant by non-tariff barriers and how they apply or could
apply to your chosen organization and/or a firm(s) in your chosen industry sector.

16. Globalization has resulted in increased migration and yet restrictions on immigration are
generally stricter than before. Briefly explain in relation to a country in which your
organization or industry operates how it has been affected by migration pressures and
restrictions on immigration.
Sample exam questions - The Political Environment
All questions must be answered in relation to your chosen organization and/or industry sector
as defined in your 'organization! industry profile'.

I. Outline the political system of the main country or countries within which your chosen
organization and/or firms in your chosen industry operate.

2. How does your chosen country score in terms of democracy and how does this affect your
chosen organization and/or firms in your chosen industry?

3. Outline the economic system of the main country or countries within which your chosen
organization and/or firms in your chosen industry operate.

4. How is your chosen organization and/or firms in your chosen industry sector affected by
the political system or systems within which it or they operate?

5. How is your chosen organization and/or firms in your chosen industry sector affected by
the economic system or systems within which it or they operate?

6. How does your chosen country rank in tenns of "ease of doing business" and how does
this affect your chosen organization and/or fim1s in your chosen industry?

7. The ability to enforce property rights including intellectual property rights are an
important factor in the 'ease of doing business'. How does this affect your chosen
organization and/or firms in your chosen industry?

8. How does the existence of, or the absence of, monopoly and/or oligopoly market power
affect your chosen organization and/or firms in your chosen industry?

9. How and to what extent does govemment in your chosen country attempt to limit
monopoly and/or oligopoly power?

10. There are great differences between the wealth and incomes of people living in the richest
and poorest countries ofthe world. How do these differences affect your chosen
organization and/or firms in your chosen industry?

II. Within countries there are often great differences of wealth and incomes. How do these
differences affect your chosen organization and/or firms in your chosen industry?

12. Countries can be characterised as "eastem" or "westem". How do these differences affect
your chosen organization and/or firms in your chosen industry?

13. With increasingly integrated world economy world political organization are increasingly
important. Consider one ofthese (examples: UN, G8, G20, WTO) and explain its
importance.

14. With increasingly integrated world economy regional political/economic organization are
increasingly important. Consider one of these (examples: EU, NAFTA, ASEAN) and
explain its importance.
15. Consider two foreign countries that your chosen finn or a finn from your chosen industry
might want to invest in. Compare the two countries in tenns of economic and political
attractiveness.
Sample exam questions - Legal Environment

All questions must be answered in relation to your chosen organization and/or its industry
sector as defined in your 'organization! industry profile'.
These are 'short-answer questions so think about how much you can write in 15-20 minutes.
The marking scheme awards marks for relevance, application and originality so avoid
irrelevance, generality and unoriginality.

I. Briefly describe the main features of the legal system in your chosen country.

2. Briefly explain why knowledge of different legal systems is useful for firms involved
in international trade and investment. Give examples related to your chosen
organization and/or industry.

3. For a country in which your chosen organisation or industry operates, what are some
of the most important areas oflegislation for your chosen organisation or industry?

4. In relation to your chosen organization or a firm in your chosen industry operating

across national boundaries consider which laws are most important.

5. Consider how membership of, or dealings with, a regional trade organization

(examples: ASEAN, NAFTA, EU) affect your chosen organization or industry.

6. What are the main rules of the World Trade Organization (WTO) and how might they
affect your chosen organization and/or industry?

7. What are the main features of European Union competition laws and how might they
affect your chosen organization or industry?

8. Health and Safety (H&S) laws are important for all businesses. How do H&S laws
affect your chosen organisation or industry?

9. Contract law is an important area of business law. Consider how the requirements of
contract law affect your chosen organization or industry.

10. Property rights including intellectual property rights are an important area of business
law. Outline how intellectual or physical property rights laws affect your chosen
organization or industry.

II. What are the main forms of intellectual property and how can they be protected?
What is the importance of intellectual property protection for your chosen
organization and/or industry?

12. Employment rights laws are important for all businesses. How do these laws affect
your chosen organisation or industry?

13. Human rights and related legislation are increasingly important. How do they affect
your chosen organisation or industry?
14. If disputes arise across national boundaries about the interpretation and/or
implementation of contracts how can they be resolved?

15. In a dispute over infringement of intellectual property rights why might an

organization choose to pursue the case in the USA rather than in the country where
the offence occurred?

16. Bribery and corruption can have damaging effects on international trade. What are
some of the national and international laws that are most relevant in this area?

17. Product safety laws are important for many businesses. How do they affect your
chosen organisation or industry?

18. Data protection and internet security are increasingly important. How are they
relevant to your chosen organisation or industry?

19. What are the main distinctions between contract law, tort, criminal law and
international law? Give examples relating to your chosen organization and/or
industry.
Look through your lecture notes and the learning outcomes
for the legal environment and identify as many things as you
don't understand. Formulate one most important question.

Any questions that don't get answered in-class post on the

group J discussion board.

For next week do the same in relation to the competitive

environment lecture notes and bring your questions to next
week's workshop.

As soon as you can put your organization/industry profile in

the 'drop-box'.
Sample exam questions - Competitive Environment

All questions must be answered in relation to your chosen organization and/or its industry
sector as defined in your 'organization! industry profile'.
These are 'short-answer questions so think about how much you can write in 15-20 minutes.
The marking scheme awards marks for relevance, application and originality so avoid
irrelevance, generality and unoriginality.

I. The terms 'industry' and 'market' are often used inter-changeably but are also often used
to make a distinction between an 'industry' and a 'market'. Explain this distinction using
examples and illustrations from you own chosen industry or market.

2. With reference to a standard industrial classification system with which you are familiar
(E.g. ISCS) in which category does your or organisation sit. Explain.

3. What are the criteria that you have applied when defining the scope of your chosen
industry/market or the industries/markets within which your chosen organization
operates.

4. Which market structure ('perfect competition', 'monopoly', 'oligopoly', 'monopolistic

competition' or other) best applies to your chosen organization or industry? Explain.

5. How does the 'structure-conduct perfom1ance' model apply to your chosen organization
or industry?

6. Explain how the measures of industry concentration (CR3 and CR5) are calculated.
Which is the more appropriate measure for your chosen industry or the industry in which
your chosen organization operates?

7. In recent decades many previously state owned industries have been privatised. To what
extent has your chosen organization or industry been affected by such changes?

8. Most countries have anti-monopoly / pro competition laws. For one or more countries
explain briefly how such laws impact on your chosen firm or industry?

9. What finns exist in your chosen industry/market and which ofthem are your finn's
closest competitors? Which other more distant competitors could give useful information
and ideas for future development in your own industry/market?

10. Give an outline of Porter's Five Forces Analysis based on your chosen organization or a
firm in your chosen industry.

11. Within the context of Porter's Five Forces Analysis and in relation to your chosen
organization or industry explain one ofthe following forces:
competitive rivalry, customer power, buyer power, threat of new entrants, and threat of
substitutes.
12. Porter's Five Forces Analysis identifies five major forces which affect the competitive
environment. What other important force or forces could be included and how do they
affect your chosen organization or industry/market.

13. What are differences between the Concentration Ratio (CR) and the Herfindahl-
Hirschmann Index (HHI) methods of measuring industry/market concentration? How
would these different measures give different results for your chosen industry?
 Draft

Sample exam questions - Social and Cultural

All questions must be answered in relation to your chosen organization and/or its
industry sector as defined in your 'organization! industry profile'.
These are 'short-answer questions so think about how much you can write in 15-20
minutes. The marking scheme awards marks for relevance, application and originality
so avoid irrelevance, generality and unoriginality.

1. How do cultural factors affect the operations of your chosen organization or of

firms in your chosen industry sector?

2. How do differences of culture between countries affect the operations of your

chosen organization or of firms in your chosen industry sector?

3. How do differences of culture within a country affect the operations of your

chosen organization or of finns in your chosen industry sector?

4. Choose one of the following elements of culture and explain how it affects the
operations of your chosen organization or of firms in your chosen industry sector?
• Language • Business etiquette
• Religion • Aesthetics
• Manners and customs • Educational levels and attitudes

5. Consider Hofstede's research into cultural differences and how his categories might affect
the operations of your chosen organization or of firms in your chosen industry sector.

6. What cultural changes are taking place in your chosen country and how might they affect
the operations of your chosen organization or of firms in your chosen industry sector in
the future?

7. How does population size and/or age distribution affect the operations of your chosen
organization or of firms in your chosen industry sector?

8. What demographic changes are taking place and are predicted and how might they affect
the operations of your chosen organization or of firms in your chosen industry sector?

9. Briefly describe the main demographic features of your chosen country. What are the
most important demographic factors affecting your chosen firm and/or industry.

10. What is the most important demographic factor affecting your chosen organization and/or
industry? Explain your answer.

II. Increased population size can have advantages and/or disadvantage for business. Explain
briefly how population size affects your finn and/or industry.

12. How does age distribution within a population affect your chosen organization and/or
industry?
Draft

13. What is meant by 'fertility rate' and how do falling fertility rates affect your chosen
country, firm and/or industry?

14. How might sex distribution within a population or ethnic diversity within a population
affect a business organization and/or industry? Give examples based on your chosen
business organization and or industry.

15. Developed countries often suffer from aging populations. Developing countries often
have a 'Goldilocks' period ofa youthful population with low dependency. Which of these
affects your chosen country and how does it or will it affect your chosen firm and/or firms
in your chosen industry?

16. How does increased urbanization affect your chosen firm and/or industry?

17. Male/female participation rates vary from country to country. How do these variations
affect your chosen firm and/or industry.

18. How do social divisions such as 'social class' affect your chosen country, industry and/or
organization.

19. Chose one of the following categories of social structure: 'social class', tribe/clan or
caste; and discuss how it affects your chosen country, industry and/or organization.

20. In many countries there are large differences of wealth and income. How do such
differences affect your chosen country, industry and/or organization.
Draft

Sample short-answer questions

- The Technological Environment

All questions must be answered in relation to your chosen organization and/or

its industry sector as defined in your 'organization! industry profile'.
These are 'short-answer questions so think about how much you can write in
15-20 minutes. The marking scheme awards marks for relevance, application
and originality so avoid irrelevance, generality and unoriginality.

I. The discovery and/or invention of new materials are an important area of

technological development. Give some examples of new materials that have
affected your chosen firm or industry and/or give examples of imaginary
new materials that might affect your chosen firm or industry.

2. In relation to an area of technological development (examples:

pharmaceuticals, genetics, transport or communications) give example of
some of its main effects on your chosen organization and/or industry sector.

3. Explain what is meant by the terms: ' research', 'basic research', 'applied
research', and 'development' in the term 'R&D'. As far as possible illustrate
your answer with examples based on your chosen industry.

4. Using examples from your chosen organization and/or industry sector the
distinction between (a) product innovation, and (b) process innovation.

5. "New technology is a source ofopportunities and ofthreats and challenges

in business. " Illustrate this statement with example and illustrations based on
your chosen organization an!of industry.

6. "A major factor in globalization has been the ability of multinational

corporations (MNCs) to manage the value-chain internationally and
globally." Explain and illustrate this statement with examples based on your
chosen organization and/or industry.

7. Joseph Schumpeter (1942) popularised the term "creative destruction" as a

threat to existing firms from new technology. Explain and illustrate some of
the dangers and challenges of new technology using examples based on your
chosen organization and/or industry.
Draft

8. Some firms, industries and countries invest more in research and

development (R&D) than others. Explain some of the reasons for these
variations. Illustrate your answer with examples based on your chosen
organisation and/or industry.

9. What are the main ways of protecting intellectual property and what are
some of the main problems. Illustrate your answer with examples (real or
hypothetical) based on your chosen organization and/or industry.

10.Using examples from your chosen organization and/or industry sector show
how work activities within organizations have been affected by the increased
use of computers and information technology.

II.In relation to your chosen organization and/or industry sector explain what is
meant by the following terms: 'e-business', 'e-commerce', 'B2B' and 'B2C'.

12.In relation to your chosen organization and/or industry sector explain how
new technology can be used to monitor employee performance, to monitor
output or to monitor sales.

13.In relation to your chosen organization and/or industry sector what are most
important benefits of e-commerce.

14.In relation to your chosen organization and/or industry sector what are most
important benefits of e-business.

15.In relation to your chosen organization and/or industry sector what are most
important problems of e-business.

16.In relation to your chosen organization and/or industry sector what are most
important problems of e-commerce.

17.In relation to your chosen organization and/or industry sector, how does the
expansion of e-commerce affect Porter's five forces?

18.The invention and development of the internet during and since the 1990s
has had a major impact on business. Explain and illustrate this statement
using examples based on your chosen organization and/or industry.
Sample exam questions - Financial Environment

All questions must be answered in relation to your chosen organization and/or its industry
sector as defined in your 'organization/ industry profile'.
These are 'short-answer questions so think about how much you can write in 15-20 minutes.
The marking scheme awards marks for relevance, application and originality so avoid
irrelevance, generality and unoriginality.

I. Consider exchange rates for your country's currency against that of its main trading
partner over the last 10 years. What trends can you see and how might these trends affect
your chosen firm and/or industry? [see http://www.x-rates.com]

2. In relation to exchange rates what is meant by the 'law of one price'. To what extent
might it affect your chosen firm and/or industry?

3. If a basket of goods has been found to cost US$300 in New York, and 30,000 yen in
Tokyo. What is the PPP yen/dollar exchange rate? If the actual exchange rate is 130
yen/dollar what would you expect to happen to that exchange rate in the future? (Feel free
to adapt this question to you own currency and that of your most important trading
partner.)

4. Briefly explain why and how money supply, inflation and exchange rates are important to
your chosen finn and/or industry.

5. Different countries run different exchange rate regimes for their currencies. What is the
exchange rate regime for your country? Compared to the alternatives, what are the
advantages and disadvantages of this exchange rate regime for your organization and/or
industry?

6. Consider the creation of the Euro currency. What are the advantages and/or disadvantages
of the Euro for your chosen organization and/or industry?

7. Consider the 2008/09 financial and economic crisis. What were its effects and, in
particular, what were its effects, if any, on your chosen organization or industry?

8. Inflation is generally considered to be damaging to international competitiveness. What

measures can governments use to control inflation and how these measures have or could
affect your chosen firm and/or industry?

9. Interest rates are the price of borrowing money. How have or could changes in interest
rates affect your chosen organisation and/or industry?

10. The exchange rate is the value of one currency expressed in tenns of another. How have
or could changes in exchanges rates affect your chosen organization and/or industry?

II. What are some of the main financial services and institutions? Briefly explain their
importance for your chosen organization and/or industry.
12. What are some of the main international financial institutions? Give examples of how
their decisions could affect your organization/industry.

13. Chose one of the main international financial institutions, briefly explain its work and
how it could affect your organization/industry.

14. Within a country or currency zone what are the main functions of the central bank or its
equivalent? Give examples of how its decisions could affect your organization/industry.

15. What are some of the main private-sector financial institutions? Give examples of how
their activities have/could affect your organization or industry.

16. The financial system has become increasingly concentrated and increasingly integrated
internationally. What are some of the advantages and disadvantage of these
developments?
Sample exam questions - Ecological Environment

All questions must be answered in relation to your chosen organization and/or

its industry sector as defined in your 'organization! industry profile'.
These are 'short-answer questions so think about how much you can write in
15-20 minutes. The marking scheme awards marks for relevance, application
and originality so avoid irrelevance, generality and unoriginality.

1. Identify one key issue in eco-environmental policy that

particularly affects your organisation or industry. Explain
briefly and illustrate your answer with
organization/industry specific examples.

2. What were the main features of the Kyoto protocol (1997)

and how does, will or might its provisions impact on your
chosen organization or industry?

3. How do EU environmental policies impact on your chosen

organization or industry?

Inooo
GNP
.000

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M 'SJOO
..i
~ 6.(lO()

1
~
~-
~(lO()

l(lO()
'ssw
tOOO

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1950 19!i5 1'!iI6O 19-65 1970 1915 I 1985 '990 1995 l00c

Figure 8.1: GNP and 15EW for the UK since 1950 (Griffiths and Wall, 2004)

4. Consider Figure 8.1 or similar data for your own country.

How might a shift from GDP driven policies to policies
based on a broader measure of welfare such as the ISEW
 impact on your organization or industry?

5. Consider the Kyoto target for reducing C02 emissions from

the viewpoints of individual consumers, society in general,
governments and your own company or industry.

6. Consider the outcome of the Cancun conference on

climate change (2010l from the viewpoints of individual
consumers, society in general, governments and your own
company or industry.

7. Consider the activities of your chosen firm and/or industry

from the viewpoint of each of a range of different
stakeholders. Give examples of concerns that each group
might have with particular reference to ecological
concerns.

8. To what extent would you recommend your firm or

industry to concentrate on the production and/or sale of
environment-friendly products?
9. What are the main eco-environmental commitments of your chosen
organisation or of organizations in your chosen industry? What do you
think they ought to be and why?

10. How does increasing ecological awareness of consumers affect your chosen
organisation or industry?

II.How do government policies and interventions on eco-environmental issues

affect your organization or industry?

12.How might global warming and climate change impact on your organization
or industry?

13. How might measures to reduce C02 emissions impact on your

organization or industry?

14. China and the USA are the two largest emitters of C02. With particular
reference to one of these countries discuss the implications of C02
reductions and/or continued global warming.
IS. China and the USA are the two largest emitters of C02. With particular
reference to one of these discuss the particular difficulties of achieving
C02 remission reductions.

16.Concepts such as 'private costs and benefits', 'social costs and benefits', and
'external costs and benefits' are used in the analysis of the ecological effects
of business activities. Briefly explain these concepts using examples based
on your chosen organization and/or industry.

17.Pollution problems can be tackled using a range of policy tools such as

'prohibition', 'environmental taxes', 'emissions standards', and 'tradeable
permits'. Consider which of these might apply to your chosen organization
or industry.

18. Global warming is the result of C02 emissions which have accumulated
during industrialization and most of these have been generated by the richer
industrialised countries. How can C02 emission be reduced or stabilised
whilst the economies of developing countries continue to grow?

19.1n relation to one of the following ecological problems discuss its

relationship with your chosen organization or industry.
• acid rain,
• ozone depletion,
• reduced biodiversity/habitat loss,
• over-enrichment of rivers and/or
seas,
• disposal of dangerous substances
• global warmi