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.

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)

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)
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