QUESTION ONE Transamco Co Ltd is a Nigerian based company that exports wine to Zambia. It has the ability to produce wine at a minimum cost as compared to other products that the company produces for local use. However, the Nigerian government has set some restrictions to promote local use of some of the products. This strategy has not put the company at a competitive position in the international market. Transamco is planning to design a new strategy that may create a better ground for profitable operations and business sustainability. a) Explain with examples the international business theory that is guiding the present business strategy and outline the reasons why the approach should change (10 mks) b) Discuss the theory of absolute advantage while outlining the assumptions that guided the proponents of the theory (10 mks) QUESTION TWO Discuss ways in which a company may apply Michael Porter's competitive strategy model in evaluating international business environment (10 mks) QUESTION THREE Explain how globalization has influenced strategies used by organizations to operate in international markets (10 mks) QUESTION FOUR Discuss why most international businesses prefer using indirect business entry strategies when entering a market for the first time (10 mks) QUESTION ONE Transamco Co Ltd is a Nigerian based company that exports wine to Zambia. It has the ability to produce wine at a minimum cost as compared to other products that the company produces for local use. However, the Nigerian government has set some restrictions to promote local use of some of the products. This strategy has not put the company at a competitive position in the international market. Transamco is planning to design a new strategy that may create a better ground for profitable operations and business sustainability. a) Explain with examples the international business theory that is guiding the present business strategy and outline the reasons why the approach should change (10 mks) b) Discuss the theory of absolute advantage while outlining the assumptions that guided the proponents of the theory (10 mks) QUESTION TWO Discuss ways in which a company may apply Michael Porter's competitive strategy model in evaluating international business environment (10 mks) QUESTION THREE Explain how globalization has influenced strategies used by organizations to operate in international markets (10 mks) QUESTION FOUR Discuss why most international businesses prefer using indirect business entry strategies when entering a market for the first time (10 mks)