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business
international business

Questions and Answers of International business

18-8. What capital budgeting techniques are available to international businesses?
18-7. What is translation exposure? What effect does a balance sheet hedge have on translation exposure?
18-6. How do the various types of countertrade arrangements differ from one another?
18-5. Which are the most commonly used methods for evaluating investment projects?
18-4. What is the hurdle rate?
18-3. What are the different types of letters of credit?
18-2. Who bears the risk when an open account is used to settle an international transaction?
18-1. Who bears the risk when payment in advance is used to settle an international transaction?
5. Discuss the primary sources of investment capital available to international businesses.
3. Describe the techniques used by firms to manage their working capital.
2. Identify the primary types of foreign-exchange risk faced by international businesses.
15-27. Mymanagementlab only—comprehensive writing assignment for this chapter Go to mymanagementlab.com
15-26. How might attitudes, motivation, and leadership affect one another in organizational settings? Go to mymanagementlab.com
15-25. Describe how you might use the “Big Five” personality traits when forming a cross-cultural project team. Go to mymanagementlab.com
15-24. Describe Pernille Spiers-Lopez’s approach to leadership at Ikea. Pernille Spiers-Lopez grew up in a small town in Denmark.After finishing college she worked as a journalist for a short time,
15-23. Discuss how her experiences with stress may have been impacted by international issues. Pernille Spiers-Lopez grew up in a small town in Denmark.After finishing college she worked as a
15-22. Describe the role that motivation has played in the choices made by Pernille Spiers-Lopez in her career. Pernille Spiers-Lopez grew up in a small town in Denmark.After finishing college she
15-21. Can you speculate about the personality traits that personify Pernille Spiers-Lopez? Pernille Spiers-Lopez grew up in a small town in Denmark.After finishing college she worked as a journalist
15-20. What other forms of advance preparation might a manager need to undertake before negotiating with someone from another country? Select a country in which you have some interest and about which
15-19. How easy or difficult is it to model the behavior of someone from another country? Select a country in which you have some interest and about which you can readily find information (e.g.,
15-18. You have been asked by your CEO to prepare two presentations, backed up by a short document. The business is expecting the arrival of a small group of employees from an overseas subsidiary.
15-17. What advice would you give a foreign national who has been transferred to a business in your country?
15-16. How do motivation and leadership affect corporate culture?
15-15. Do you think it will ever be possible to develop a motivation framework that is applicable in all cultures?Why or why not?
15-14. Good leadership is vital to all organizations. What makes a good business leader in your country?
15-13. How do businesses in your country seek to motivate employees?
15-12. Imagine that you have just been transferred to an overseas location by your business. What are your own personal dimensions? How might these personal dimensions affect your experience and your
15-11. Think of two or three personality traits that you believe are especially strong in your culture, and two or three that are especially weak. Relate these to Hofstede’s cultural dimensions.
15-10. Which do you think is a more powerful determinant of human behavior—cultural factors or individual differences?
15-9. Why are teams so important? What are the basic implications of teams for an international business?
15-8. Summarize the steps in the normative model of decision making and relate each to international business.
15-7. How do needs and values differ in different cultures?
15-6. Identify some of the basic issues managers must confront when attempting to motivate employees in different cultures.
15-5. Discuss stress and how it varies across cultures.
15-4. Explain how attitudes and perception can affect each other.
15-3. Discuss the basic perceptual process and note how it differs across cultures.
15-2. Explain how attitudes vary across cultures.
15-1. Define personality and explain how personality differences affect individual behavior.
The International Licensing Industry Merchandisers’Association (LIMA; www.licensing.org) is an organization with offices worldwide. It supports merchandise licensing through education, networking,
Suppose you are an international entrepreneur and want to open your own franchise somewhere in Europe.You decide to conduct research to identify the most promising franchise and learn how to become a
Suppose you get a job at the office of the International Intellectual Property Alliance (IIPA; www.iipa.org) or the World Intellectual Property Organization (WIPO; www.wipo.int). You learn that
Ethical Dilemma: You are the president of Dynamic Publishing, a firm that publishes textbooks. During an overseas trip, you assess the prospects for marketing Dynamic’s textbooks abroad. Upon
Following on from the situation in 15-14, the CEO is so impressed with your assessment of the situation in the North African countries that she has promoted you to Vice President North African
The Organization for Economic Cooperation and Development (OECD) estimates that the global market for counterfeit goods is worth nearly $500 billion annually. These figures have seriously worried the
What are the best practices in managing international contractual relationships? L01
Define and distinguish the following contractual entry strategies: build-operate-transfer, turnkey projects, management contracts, and leasing. L01
Name the industries that rely the most on franchising to tap foreign markets. L01
What are the advantages and disadvantages of franchising from the perspective of franchisors and franchisees? L01
Outline the challenges facing professional service firms when they internationalize. L01
In a build-operate-transfer agreement, how does the business that built the facility ensure that they profit from the agreement? L01
What steps should Subway management take to better pursue franchising opportunities in China? L01
Subway faces various cultural challenges in China. What are these challenges, and what can Subway and its master franchisee do to overcome them? L01
What are the advantages and disadvantages of franchising in China? What can Subway do to overcome the disadvantages? From Subway’s perspective, is franchising the best entry strategy for China? L01
Subway brings to China various intellectual property in the form of trademarks, patents, and an entire business system. What are the specific threats to Subway’s intellectual property in China?
What risks does LEGO face from licensing its brand, logo, toy patents, and The LEGO Movie? L01
What are the advantages of licensing as described in the case? L01
How does LEGO generate royalties by using contractual entry strategies? L01
Understand infringement of intellectual property, a global problem. L01
Understand other contractual entry strategies. L01
Explain the advantages and disadvantages of franchising. L01
Understand franchising as an entry strategy. L01
Describe the advantages and disadvantages of licensing. L01
Understand licensing as an entry strategy. L01
Explain contractual entry strategies. L01
What risks do companies typically engage in with international business?
You have recently been hired by a smaller firm that is beginning to expand internationally. When first starting out, most firms choose exporting as their main foreign market entry strategy. However,
In this chapter, we reviewed the four major risks that firms face in international business: cross-cultural risk, country risk, currency risk, and commercial risk. Identify one or more countries that
You can gain valuable insights into international business by examining how countries compare to each other. Various research groups and international agencies systematically examine economic,
Your CEO has long been frustrated by poor communications, reliability and quality from overseas suppliers.He is convinced that the acquisition of assets in the supply chain will make it more
In the role of financial advisor MaggieCercado, a client has approached you for guidance. The client is convinced that there is no immediate advantage in investing in domestic businesses or markets
What is involved in the process of internationalization?
Why did the German government and public resist the acquisition of Mannesmann by Vodafone in late 1999? Are there any similarities with the lack of success of the company to acquire a local Chinese
Why did Vodafone expand first towards the U.S., through the acquisition of 45% of AirTouch’s share, although there was no technology compatibility between North America and Europe, making roaming
What is the underlying rationale for Vodafone’s expansion strategy to invest in the number two operator of a target country, instead of the incumbent number one?
How has Vodafone benefited from expanding abroad? What types of advantages has the company obtained from its international expansion? What advantages acquired overseas can help Vodafone maintain its
What is the nature of the international business environments Vodafone faces? What types of risk does the firm face?
What role can the government play in promoting internationalisation?
How does cooperation in international business offer competitiveness?
What might be the underlying motivations of emerging markets MNCs like Geely’s acquisition of foreign auto brand?
Appreciate why you should study international business.
Describe why firms internationalize.
Understand how international business differs from domestic business.
Describe the key concepts in international business.
16-21. Mymanagementlab Only—comprehensive writing assignment for this chapter.Go to mymanagementlab.com
16-20. Why do you think that sophisticated and effective multinational firms still occasionally make mistakes in their international marketing efforts? Go to mymanagementlab.com
16-19. Discuss how international marketing relates to international strategy. Go to mymanagementlab.com
16-18. What does this case illustrate about the tradeoffs between economic and social benefits in international business? One of the longest-surviving online businesses in the world recently
16-17. Visit novica.com and unilever.com. Compare and contrast the two sites in terms of their marketing effectiveness. One of the longest-surviving online businesses in the world recently celebrated
16-16. Could other businesses follow the basic model employed by Novica? Why or why not? One of the longest-surviving online businesses in the world recently celebrated its 16th anniversary. This
16-15. What is the difference between international marketing and international community building? One of the longest-surviving online businesses in the world recently celebrated its 16th
16-14. What are some basic differences you might expect to see in TV ads broadcast in France, Japan, Saudi Arabia, and the United States?
16-13. EPG is a framework used to identify strategic profiles for international business strategy. What ‘orientations’or approaches are associated with stages in the evolution of international
16-12. What are the advantages and disadvantages of each pricing policy? Why do most international firms use market pricing?
16-11. International marketing managers need to remember that the effectiveness of personal selling, sales promotions, advertisements and the importance of public relations varies from one country to
16-10. How do legal, cultural, and economic factors in your home country affect product policy for foreign firms?
16-9. Identify several products you think could be marketed in a variety of foreign markets with little customization.Identify other products that clearly would require customization.
16-8. What are the similarities and differences between domestic and international marketing?
16-7. How can international marketing managers find the optimal distribution channel, and develop a comprehensive distribution strategy for goods and services they intend to sell in foreign markets?
16-6. What are some of the fundamental issues that must be addressed in international advertising?
16-5. What are the dangers in attempting to set prices globally?

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