SPECIFIC INSTRUCTIONS TO STUDENTS
Students must ensure that they understand the question and what is required of them
before attempting to answer.
This assessment covers Study Units 3 – 9 of your study guide – IMM Graduate School.
(2022) FIT101C, Fundamentals of International Trade Study Guide. South Africa: IMM
Graduate School.
It is only when you use your own words that the markers can establish whether you
have understood the concepts outlined in the study notes. The markers are then in a
better position to offer you constructive feedback. Students are therefore required to
provide their own interpretation of the questions and concepts. Simply rewriting from
the study guide or a textbook will not result in any marks being awarded. Students are
reminded that this is an individual effort and group submissions will be penalised.
Case Study
Celebrated North Yorkshire brewers, Theakston, believes their award–winning ales
could be a potential winner in locations such as Rio de Janeiro and São Paulo. It has
begun a serious investigation to see whether the company can tap into this potentially
huge market.
The hope is to sell its bottled rather than cask beers into this South American giant.
The Masham–based company is awaiting a response to a recent batch of test samples.
“Brazil’s history of trading with British brewing companies is very limited,” says
Executive Director Simon Theakston. “But there’s growing world interest in craft
brewing of which English brewers are leading exponents.”
“The challenge is to introduce a beer of a different style and heritage to a new market.
To begin with it will no doubt have curiosity value and will take time to achieve critical
Page 2 of 5
© IMM Graduate School
Assignment Two: 2nd Semester 2022 FIT101C
mass. Getting the beer on to the shelves will be the easy bit. The real measure of
success will be how well consumers take them off the shelves.”
“It’s early days and we’re just dipping our toes in the market. But Brazil is a big and
stable economy so who wouldn’t be interested? We’re very positively orientated
towards Brazil. I don’t envisage logistical issues. The key thing is what happens to the
product when it gets there.”
“We believe that the market for international premium beers in general is ripe for growth
as Brazil becomes more international in outlook with both the Olympics and World Cup
football being held there in the coming years. That together with the fact that Brazil’s
economy has now overtaken our own to be the sixth largest in the world can only help
drive the interest in different beer styles.”
Source;
https://www.chamber–international.com/export–import–key–markets/about–import–
export–trade–with–brazil/export–company–case–study/
Instructions for completion of this assignment
All answers need to be practical and focused towards advising / guiding Theakston in
their international trade endeavours.
No marks will be allocated for when information from the study guide is directly copied.
Additional research is a requirement for some questions and students should indicate
resources used.
Question 1 (30 marks)
While language, material culture, aesthetics and social organisation are outward signs
of culture, it is a society’s religious beliefs, attitudes, values, and norms that dictate the
behaviour of its members. Through this the exporter gains understanding of the
practical influence that the culture of a foreign market or market segment could have
on their export marketing activities. A businessperson should also demonstrate an
understanding of verbal and non–verbal communication skills if he/she is to be
successful in a foreign market.
Page 3 of 5
© IMM Graduate School
Assignment Two: 2nd Semester 2022 FIT101C
Research Brazil and the United Kingdom in relation to the above statement. Explain
three differences between the two countries for the following points.
This is not a general discussion; your focus should be on gaining understanding of the
practical influence that the culture of a foreign market or market segment could have
on their export marketing activities.
1.1 Aesthetics (6)
1.2 Social Organisation (6)
1.3 Religious beliefs (6)
1.4 Sense of space (6)
1.5 Respect (6)
Question 2 (12 marks)
Companies often fail in their early attempts to export because they underestimate what
is involved in exporting and do not have sufficient resources. In the case study
Theakston is confident that they can their research shows that Brazil is a possible
market for their product.
However being able to ship a product does not necessarily make a company export
ready.
Explain, in your own words, to the management of Theakston what they need to
practically consider in terms of export readiness for the following points. Refer to
information provided in the case study and research done in question 1.
2.1 Production Capacity and Quality control (6)
2.2 Business planning and senior management commitment (6)
Page 4 of 5
© IMM Graduate School
Assignment Two: 2nd Semester 2022 FIT101C
Question 3 (5 marks)
Although some products may not require any alterations to sell in a foreign market,
several factors may give rise to the need for some modifications.
Taking the case study into consideration, what you have learned in your study guide
and by answering question 1 and 2, explain in practical terms to Theakston how the
import countries legal requirements may give rise to product modification.
Question 4 (20 marks)
Entering a new country/market means dealing with a different kind of customer in a
foreign environment with laws and regulations that may differ radically from those of
the domestic market. Explain to Theakston some of the differences that they, as
exporters will face when selling across national borders.
You answer should be based on information you have gathered thus far, the case study
and your study guide.
4.1 Finance and logistics (5)
4.2 Documentation (5)
4.3 Customs rules and regulation (5)
4.4 Exchange Control Rules and Regulations (5)
Question 5 (8 marks)
Explain to Theakston’s management why exporting is important at an individual
company level. Your explanation should be practical and incorporate material provided
in your study guide and what you have learned by answering the previous questions.
5.1 Lower unit costs (4)
5.2 Spread of risk (4)
TOTAL MARKS: 75 marks
