Assessment item 1 Report: Module 1: Topics 1-6 Length:

Assessment item 1
Report: Module 1: Topics 1-6Length: Approx 3,000 words (600 words on eachquestion)Submission method optionsAlternative submission methodTaskTopics 1 to 6 are covered in this assessmenttask.Your assignments requires that you utilise atleast six references in addition to your text, preferably including somejournal articles. You may use no more than two URL Websites. (This does notrefer to journal articles.)Background:The Magic Fuel Company (MFC)is an Australian public company specialising inthe production of fuel additives and other fuel products.Experimentation with fuel and the utilisation ofadditives to make engines run more efficiently hasresulted in the production of a super concentrated fuel gel which has thepotential to reduce all fuel to approximately 20% of current volume andincrease the efficient burning of the concentrate by up to 200% of currentrefined fuel products.This means that each litre of fuelis equivalent to approx 200 ml of gel and fuel usage is reducedto half current usage. Using the fuel gel a car with a 60 litretank using 10 litres per hundred kilometers of conventional fuel couldcarry the equivalent of 300 (5*60) litres and travel approximately 3000kilometres per tank. The gel is the same weight as current fuel, isless volatile and has a longer shelf life.MFCis aware of the potential of the new technology tecompany has developed to refine crude petroleum and the value of thespecial additives for the gelling process and reactivation of the gelwithin the engines of vehicles. The dilemna is how to take theirknowledge and the process to the world. (Australia currently importsrefined fuel from Asia).In this assignment you have to advise MFC howto internationalise this new and potentially huge business.Yourtask is to answer the following questions in the contextof this companyQuestion 1:
Why would MFC choose totrade internationally? State your reasons clearlyand concisely.Describe concisely the main types of internationalbusiness this firm is likely to set up in the short term andlong term. Give reasons for your choices.What does the term globalisation means inrelation to this business?
Question 2:
Describe conciselythe main barriers to international trade that MFCmayface.What are thearguments for and against trade protection and howwould they influence MFC?
Question 3:
What are themain types of political and legal risk that MFC mayhave to deal with in its operations?What type ofstrategies can MFC use to manage political and legalrisk?
Question 4:
Describe Hofstede’sframework for analysing cultural differences.Whatare the strengths and weaknesses of Hofstede’sFrameworkfor MFCmanagers analysing cultural differences?How wouldcultural characteristics influence patterns of communication for MFCmanagersin USA and in India?How canthe managers of CI take different communicationcharacteristics into consideration to improve cross-culturalcommunication?
Question 5:
Using point format,briefly describe how could MFC use therange of international trade organisations.Whatinfluence could regional economic groupsbe used by MFC?
RationaleAssessment item 1 has been designed to test yourunderstanding of the material covered in Topics 1 to 6 and to meet the learningobjectives listed in the Study Guide for those topics.Marking criteriaGenerally, markers use the following criteria forgrading an assignment.Pass mark assumes:1. The question is understood and addressed.2. The required reading is completed – evidence of such.3. Awareness of issues involved4. Awareness and understanding of major theories/theorists.5. Sufficient organisation of thought and expression to allow the reader tofollow without effort.6. Use of correct referencing.Additional marks can be gained by the additionalfollowing elements.Credit mark assumes all of these:1. Evidence of additional reading.2. Analysis of issues involved.3. Comparison of major theories/theorists.4. Organisation of thought and expression that logically aids argumentpresented.Further additional marks can be gained by theadditional following elements.Distinction mark assumes all of these:1. Evidence of extensive relevant reading.2. Critical analysis and implications of issues involved.3. Application of theories to discuss issues with appropriate evidence tosupport or refute arguments.4. Personal integration of these elements to the conclusions arrived at.5. Evidence of original or creative thought.