International Business

Read each question carefully and answer the questions correctly and accurately. Give more answers than the marks given.

SEGHDH A [El] MARKS] There are THREE (3] questions in this section. Answer ALL questions in the answer booklet. Question 1 Rhythm ii. Hues Studios recently made headlines in Maiaysia as its Cyberjaya branch was mentioned in the director of Life of Pi, Ang Lee's speech In the Academy Award when the lm won the award for best visual effects. Rhythm 9 Hues is a visual effect company based in E] Segundo, California and has production facilities in india. Canada. Taiwan. and Malaysia. At the international level. the company is known for having its own patented visual effect software and for tel-ting over one of 29'\" Century Fox's subsidiaries in year 1999. Apart from the awardwvinning life of PI. the company has also worked on other wellknown movies including Babe. Snow White and the Huntsman and tit-Men: First class. Despite its achievements the company has led for bankruptcy and sale of the company. however. did not seem to affect the companys international operation much. Source: httpsdiwww.hcllywocdreporter.comimoviesimovtenewsi'revealIngrhythm-huessltfe-pl- Eomi The following question are related to the company: a] Discuss T'li'tii'JJ| [2} possible reasons for Rhythm 3: Hues to iocate its production facilities in the four countries mentioned above. {5 marks} b} Briey discuss the pressure for cost reduction for Rhythm and Hues and rationalize why Rhythm a Hues uses wholly owned subsidiary as its foreign market entry in the four countries. [5 marks} C) Discuss FOUR (4) elements of Porter's Diamond on why USA-based companies and studios are internationally competitive in the visual effect movie-making industry in general. (10 marks) (Total: 20 marks)(Total: 20 marks) Question 2 'Mat Kilau: The Rise of a Warrior' to be marketed globally KUALA LUMPUR: The movie 'Mat Kilau: The Rise of a Warrior' will be marketed globally via Road to Oscars project. In light of the movie's success, having collected more than RM51.8 million at the box office in 13 days since its premier, Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin said that the ministry was planning to produce more films based on the nation's history for the international market. "As we're in the midst of planning for the Road to Oscars project, the ministry is also looking at opportunities to collaborate with various parties for sponsorship and other means. "The ministry has already approached local universities and telecommunication companies to help us kickstart the project. Zahidi said that other than Mat Kilau, local filmmakers could also collaborate with their Indonesian counterparts to make a film based on Selangor-born Raja Ali Haji, the 19th-century Bugis-Malay historian, poet, and scholar who was elevated to the status of National Hero of Indonesia in 2004. Source: (Tahir, 2022) Retrieved on July 18, 2022 from https://www.nst.com.my/lifestyle/groove/2022/07/811872/showbiz-mat-kilau-kebangkitan Pahlawan-be-marketed-globally. a) Which international business strategy do you think is most appropriate for The Movie Mat Kilau to be marketed in? Briefly justify your answer. (10 marks) b) Use Hecksher-Ohlin's theory to determine whether Malaysia should specialize in movie production. (10 marks) (Total: 20 marks)Question 3 Microsoft Acquires Activision Blizzard The acquisition also lets Microsoft get its foot into the metaverse's door. Has Microsoft spent too much for its planned acquisition of video game maker Activision Blizzard? It is the impression of many since Microsoft's announced the $70 billion deal in mid-January. Before this, Microsoft's biggest buy was its $26 billion purchase of Linkedin in 2016.It's certainly a lot. This time, the Redmond, Washington-based software giant nearly tripled what it had paid for its previous largest purchase, intending to show Sony, Nintendo, Tencent and other video-game producers that if they want to stay among the happy few players in the industry, they had better pay up or leave the table. However, Microsoft likely will get Activision on the cheap. The very successful creator of marquee titles like Call of Duty, Candy Crush and World of Warcraft is embroiled in lawsuits alleging sexual harassment and gender-pay inequity that have diminished the company's valuation. Nevertheless, Microsoft as the soon-to-be owner will be able to change the rules of the game. Activision's products have approximately 400 million monthly players to whom Microsoft could offer its video-game subscription services for $10 or $15 a month to access the most popular titles. Players could unplug from their consoles and stream their games the same way they watch their favorite movies and TV series. Suddenly, the console business may prove less attractive to Microsoft's competitors. The acquisition also lets Microsoft CEO Satya Nadella get his foot into the metaverse's door, a term he used several times during the deal's announcement. Microsoft, along with Apple, Google and Meta (nee Facebook), perceives the metaverse's virtual world as the next electronic land rush. Although the business model remains in its nascent stages, companies and investors have great expectations for the metaverse. Emergen Research, for example, estimated that the market for video games, virtual-reality headsets and online services reached $49 billion in 2020, and expects a 40% annual growth rate moving forward. Source:(Crosdale, 2022). Retrieved on July 18, 2022 from https://www.gfmag.com/magazine/february-2022/microsoft-acquires-activision-blizzard Based on the case study, answer the following questions. a) Determine the following: i. TWO (2) possible benefits that Microsoft will gain if they acquire Activision Blizzard. (4 Marks) ii. THREE (3) importance of engaging with any strategic partners for technology industry. (6 Marks) b) Recommend TWO (2) ways of making alliances work that can be developed within the technology industry's players. (10 Marks) (Total: 20 marks) END OF QUESTION PAPER **