This was the 50-mark compulsory question. The question’s scenario was complex and required candidates to undertake a number of detailed calculations and discuss the issues thereon.

Therefore, it was essential that the candidates managed the volume of information provided effectively, in order to provide coherent and detailed answers.

Question one asked candidates to consider whether or not a company should invest in a project in another country. They were first asked to consider whether or not the company consider its own plant or to licence the assembly.

The question then asked candidates to report on the financial feasibility of the project if it set-up its own plant through an international investment decision, to discuss the assumptions made and other issues that should be considered and to reach a reasoned conclusion.

Many candidates found the calculations required in this question difficult and appeared to spend a significant amount of time on them. This created pressure on them to complete the rest of the requirements of the question in less time and also the structure of the report was often unsatisfactory.

This meant that candidates failed to gain many of the easier marks available for discussing the assumptions and the majority of the professional marks. Many candidates’ scripts which had marks of between 40% and 49% could have passed if these marks had been gained.

Part (a) of the question asked candidates to discuss the possible benefits and drawbacks of a company setting up its own plant in another country or licensing the assembly to a local company in that country.

Generally this part of question one was done well with many candidates getting between three and five marks out of five. Where marks were lower, the candidates did not compare between the two options but merely talked about the benefits and drawbacks of setting up a plant in another country.

Sometimes candidates made too many points on this part and spent too long on it. Good time management within questions, as well as between questions, is essential.