SECTION C

Answer either Option A or Option B. Answer all parts of the chosen question.

OPTION A

(a) Since the late-1980s, most Japanese manufacturers of general household appliances have shifted production abroad using FDI rather than producing and exporting from Japan. Discuss the rationale behind this trend by considering the relevant stage in the Product Life Cycle Theory.

(b) Despite arguments supporting the globalisation of markets, the issue of whether to adopt a strategy that favours standardisation or one that favours local adaptation continues to attract debate among researchers. From a marketers perspective, discuss (using any three reasons) whether standardisation or local adaptation is more appropriate for a company that specialises in healthy snack products.

(c) AutoX is an established manufacturer of specialised trucks and equipment used in the construction industry. The company takes advantage of the benefits of global production and its current production strategy favours a centralised approach. Relating to any two manufacturing technological factors, discuss why centralised manufacturing may be more appropriate for AutoX. Also, highlight any two country factors that may influence AutoXs choice when selecting a manufacturing location.

OR

OPTION B

(a) For a manufacturing business with foreign direct investment (FDI) located in a lesser developed market, describe any two situations where ethical issues may arise and propose how the firm should act to ensure that it is adhering to ethical guidelines.

(b) In relation to business expansion, discuss why an international strategy may be more appropriate than a global strategy for a firm that specialises in branded fashion accessories.

(c) XYZ is an Australian business that has been exporting successfully to the US for many years. To enhance this trading relationship, XYZ has been pricing all its exports in US rather than in Australian dollar. In recent months, the Australian dollar has been strengthening in value against the US dollar. If the Australian dollar continues to strengthen against the US dollar, what are the implications for both XYZ and its US customers in relation to their future export transactions? Discuss how XYZ can use 'leading' and 'lagging' strategies to manage transaction risk.