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Exam name: Foundations of International Management I


  • Semester: 14WS
  • Date: 2014-12-12
  • Duration: 60 Minutes
  • Exam type: Written, 60% open ended question, 40% multiple choice
  • Exam number: MWI 37101
  • Examiner: Prof. Dr. Dirk Holtbrügge
  • Tools and Aids: Pens, and one bilingual dictionary
  • Type: Memory Minutes


  • Two squared double sheets were provided for answering the open question.
  • One empty sheet was provided as scrap paper.
  • Required reading material was „Internationales Management“, 5th edition, chapters 1, 2, 3 and 4, written by Holtbrügge (examiner) and Welge
  • Estimated time to correction: one month, thus hopefully before the Exam for Int. Management II
  • There was no wall clock in the lecture hall where the exam took place (There was a wall clock in the rear wall, but as they ask you to turn off your phone, I would recommend to bring a watch.)

Open Questions

Question 1: VW in Russia

  • Explain and discuss the following using Dunning's eclectic theory.

VW Group entered the Russian marked in 2007. VW invested 750 million Euros in a Russian production site in Kagul in 2007, and started to assemble semi-knocked down VW and Å koda branded models. The Russian marked is generally considered an important strategric market. The Russian marked is very large. VW produced 100.000 units since they built their plant in Russia. VW plans to erect another production plant in the same City. This is an investment of 250 million Euros. The new plant will produce very modern engines.

Question 2: Ikea in Asia

  • To what extend can the described scenario be explained by the Learning Theory by Johanson/Vahlne?
  • To what extend can the internationalization of Ikea explained by so-called Born Globals?

In the recent years Ikea Group has just entered the Asian market. The company was founded around 1960, as a national corporation. The company started to export sporadically to Norway and Sweden five years after the founding in Helsinki. Ten years later Ikea expanded to cover all of Europe with exports and at the same time opens sales offices in Norway and Sweden. In 1994 (or similar) they entered the American market by directly opening representatives offices in the U.S.A. A few years ago Ikea has aquired a furniture brand named Angstream with shops in Singapore and Novosibirsk.


  • Exactly one of the two open questions has to be answered.
  • Make a sketch of your text structure first, then write clean version with full sentences.
  • Directly state the terms you aim at (e.g. in example for Ownership Advantage, state that term)
  • Write a Preface, including:
    • Reasons for relevance of question, due to…
    • …connection to current news events
    • …expectations for future
  • Write a Conclusion, including:
    • „lessons learned“ from this case
    • recapitulate (potential) foreign decisions
    • future perspective (e.g. geopolitical development, et cetera)
    • closure of golden thread / circle of common theme
  • Go to exam preparation session!

Multiple Choice

Task topics
  • The tasks only covered chapters 1 to 3 of script and required reading,
  • plus Beri and Incoterms of chapter 4.
  • Incoterms did not only include DDP and EXW, but also CIF.
  • Transnationality-Index (TNI)
  • Product-Life-Cycle-Theory (PLC)
  • Regional Integration, regarding Comecon, Mercosur, EU itself and European Central Bank
  • In the period of colonialization of Africa, private companies with … played an important role
  • HDI is a qualitative criteria
  • Micro Multinationals are characterized by leapfrogging
  • Foreign Trade Theories: Theory of comparative cost advantage (Ricardo) is about …
  • Leontief paradoxon says America did import export capital instensive labour despite its capital walthiness and imported labour intensive work
  • This section consists of 15 tasks.
  • Each task has three statements to be marked True or False.
  • If all statements are correctly marked: 6 points
  • If two statements are correctly marked: three points
  • If one statement is correctly marked: one point
  • If one statement is unmarked: no points
  • Read statements very carefully.