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business
international business
Questions and Answers of
International business
What is the role of education in (1) addressing the problems raised in the roundtable, (2) creating societies in which people can deal effectively with public policy issues, and (3) cultivating
What are the roles of state and federal governments in dealing with globalization? What is government’s role in protecting citizens from the potential negative effects of globalization? What kinds
Summarize the arguments in favor of globalization that the business executive made. What is the role of technology in supporting company performance in a globalizing business environment? L01
Do you think globalization and MNE activity are creating problems for the world? What kinds of problems can you identify? What are the unintended consequences of international business? L01
What are the risks associated with such rapid and dispersed growth for a new company? L01
Beyond simply increasing revenue, what advantages might a new business benefit from thanks to early international exposure and growth? L01
What environmental factors create favorable conditions for businesses such as Skype to rapidly grow internationally? L01
Understand the societal consequences of globalization. L01
Understand firm-level consequences of market globalization. L01
Learn the dimensions of globalization. L01
Understand the impact of technological advances on globalization. L01
Learn the driving forces of globalization. L01
Understand market globalization as an organizing framework. L01
Assume you own a company that manufactures medical products in the biotechnology industry. You want to establish a foreign plant to manufacture your products and are seeking countries with a high
Suppose your firm wants to identify prospective countries for direct investment. Your boss has requested a report on the attractiveness of alternative locations based on their potential FDI return. A
Suppose your company wants to establish a factory in Latin America to make and sell products in the region.It has narrowed the pool of candidate countries to Argentina, Brazil, and Chile. Your task
Ethical Dilemma: Censorship standards vary worldwide. What is acceptable in some countries, such as nudity on television, criticizing authority, or revealing government secrets that affect national
Suppose you work for Aoki Corporation, a producer of processed foods. Your boss, Hiroshi Aoki, heard there is a big market for processed foods in Europe but does not know how to enter or do business
Suppose you get a job at MobileTV, a small manufacturer of TV sets installed in cars and boats.Business has declined recently, foreign rivals from emerging markets are increasing competition, and
How can a global retailer ensure that they adapt to conditions in an overseas market while retaining their unique features and value proposition? LO1
What is a project-based non-equity venture, and how are the partners’ independence protected? LO1
What factors should management consider when deciding where in the world to establish a factory?A marketing subsidiary? A regional headquarters? LO1
What are the major motives for undertaking FDI for a small firm whose sales are dwindling in its home market? For a firm that wants to enter a country with high trade barriers? For a firm with high
Identify the different types of collaborative ventures.What type of venture is best for entering a culturally distant market such as Malaysia or Uzbekistan? For the next generation of products in its
Many MNEs are adhering to global sustainability agendas. What does this mean, and what are the implications for businesses? LO1
How can FDI be seen as efficiency seeking? LO1
What are the three different options as far as joint ventures are concerned? LO1
Over the last decade, Chinese investments in the European Union have been welcomed. What do you think the latter’s likely attitude toward Chinese investment in the longer term would be? LO1
Consider the trends as analyzed in the last section. Why, in your opinion, are greenfield investments are on the rise?What other changes can be expected in the coming years in terms of the Chinese
What are the main countries and sectors where Chinese FDIs have been concentrated in the last five years? What are the reasons behind these choices? LO1
With regard to Chinese FDIs, what are the motivating factors behind the Chinese presence in Europe? How do they compare to the FDI doctrine studied in the rest of the chapters? LO1
Analyze the overall trends among Chinese FDIs and compare the case of the United States and the European Union. How do they relate to each other? LO1
Describe the various ways Huawei has invested in Africa. LO1
What benefits does foreign investment bring to Africa? LO1
What are the main characteristics of Africa as a market for mobile telephones? LO1
Discuss the experience of retailers in foreign markets. LO1
Understand international collaborative ventures. LO1
Identify the types of foreign direct investment. LO1
Explain the motives for FDI and collaborative ventures. LO1
Describe the characteristics of foreign direct investment. LO1
Understand international investment and collaboration. LO1
A third-party logistics provider (3PL) provides outsourced or third-party logistics services to companies for part or all of their distribution activities. Examples include DHL, DB Schenker
Procter and Gamble (P&G) and Unilever are the two leading firms in the consumer products industry for offerings such as soap, shampoo, and laundry detergent.P&G (www.pg.com) is based in the United
Global branding is key to international marketing success.Each year Interbrand (www.interbrand.com) publishes a ranking of the top 100 global brands. The ranking can be accessed by searching at the
Your parent company is supposedly based in Singapore with manufacturing plants in Malaysia.The company sells sterile dressings and other surgical disposal items to hospitals and clinics in over 30
Office Depot (www.officedepot.com) is a supplier of office equipment and supplies. It has stores in Japan, Mexico, and Poland. Suppose Office Depot decides to launch a line of notebook computers and
Products must be adapted to accommodate national differences arising from customer preferences and each market’s economic conditions, climate, culture, and language. Think about the following
What does a global account manager do? LOI1
Suppose export customers of a consumer product are highly sensitive to price. However, the firm is experiencing substantial price escalation in the market. What factors may be causing this situation?
What are the most important factors to consider when formulating international pricing strategies?What steps would you follow in arriving at international prices? LOI1
Why do businesses engaged in internationalization opt to create a global positioning strategy? LOI1
Consider your favorite brand of laptop computer.In terms of the marketing program elements, what attributes of laptop computers does the firm need to adapt and which attributes can it standardize for
How does a positioning strategy help an organization differentiate itself from competitors? LOI1
Toledo Glass Sociedad Anónima operates successfully in the Spanish domestic market and across many countries in Latin America. The company struggles to compete elsewhere. What might be the
Outline the environment for international business. What dimensions need to be considered by organizations that operate internationally? LOI1
H&M is pursuing key CSR and sustainability goals. How do you believe customers view such initiatives? How do such initiatives create value for the firm? Please elaborate. LOI1
H&M is targeting emerging markets such as China, Russia, and Saudi Arabia, which are often characterized by distinctive cultures, lower incomes, and inexperience with leadingedge fashion. In terms of
How does H&M strike a balance between standardization and adaptation of its marketing program? What advantages does H&M gain from standardization? From adaptation? What factors drive management to
A key aspect of H&M’s strategy is to provide value to customers by maximizing perceived product benefits, minimizing prices, or both. In light of this, how can H&M further increase the value of its
How does management at H&M use global branding and global product development to create and offer its fashions? How does the firm use marketing mix elements to market its offerings around the world?
Visit H&M’s website at www.hm.com. Summarize the characteristics of H&M’s global market segment(s). How does H&M position itself to target customers around the world? LOI1
Standardizing versus adapting marketing program elements. LOI1
Which customer segments to target. LOI1
How to position itself and its offerings. LOI1
What can Kors do to expand international sales? LOI1
Describe the role of branding in the global luxury products market. LOI1
What international marketing strategies have been key to Kors’s success? LOI1
Describe international distribution. LOI1
Understand international marketing communications. LOI1
Explain international pricing. LOI1
Describe global branding and product development. LOI1
Understand standardization and adaptation of international marketing. LOI1
Explain global market segmentation. LOI1
You work for an MNE that makes and markets smartphones. Senior managers want to begin selling the phones in Latin America. To pursue a transnational strategy, they want to minimize adaptation of the
Multinational firms play a key role in globalization. Various news organizations prepare classifications and rankings of MNEs (e.g., Financial Times, Bloomberg BusinessWeek, Forbes, Fortune). Find
Visit the websites for Toyota (www.toyota.com) and Procter & Gamble (www.pg.com). From what you can gather, how do these two firms organize their international activities? Do they seem to be applying
Ethical Dilemma: You were recently hired as a manager for international operations of Despoyle Chemical Corporation, a major manufacturer of dyes, fertilizers, and other industrial chemicals.Despoyle
IKEA is a global furniture and life style brand with“big box” outlets in many locations around the world. Initially, it was marketed as the epitome of Scandinavian design, with simple lines,
NEC is a global business with net sales in 2018 of nearly $26 billion. Although much of its activities are based in Asia, it has a truly global presence and favors locally led businesses. NEC
What is a functional structure? What are the advantages and disadvantages of this approach? lo1
Some organizations have export departments and others have an international division. Why might an organization opt for this approach? lo1
What are the different organizational structures for international operations? Which structure(s) is most associated with global strategy? lo1
What is the difference between a centralized and a decentralized organizational structure? Why do firms often prefer to have a centralized structure? lo1
Define transnational strategy. Give examples of firms that apply a transnational strategy. lo1
What is the difference between global strategy and multidomestic strategy? Visit the Dell Computer website (www.dell.com). Does Dell generally apply a global strategy or a multidomestic strategy? How
What do you understand by the term home replication strategy? lo1
Describe the distinction between multidomestic and global industries. lo1
Define visionary leadership. What are the traits of a manager who has visionary leadership? lo1
Examine Lenovo in terms of the integration-responsiveness framework. What are the pressures that Lenovo faces for local responsiveness? What are the pressures that Lenovo faces for global
What is the nature of Lenovo’s international strategy? Is the firm’s strategy primarily multidomestic or global? Justify your answer. What advantages does Lenovo derive from the particular
Describe Lenovo’s organizational culture. What are the characteristics of Lenovo’s culture? How does the culture help Lenovo achieve its international goals? lo1
What is strategy? How does Lenovo use strategy to succeed in the global marketplace? What strategies does Lenovo employ to maximize company efficiency and flexibility? What does Lenovo management do
How generally to configure and coordinate the firm’s activities around the world? lo1
How best to deal with competitors. lo1
What product lines to offer. lo1
Which customers to target. lo1
What strategic challenges does IKEA face going forward? lo1
Describe IKEA’s organizational culture. How does it contribute to the firm’s success? lo1
What strategies and other approaches does IKEA follow that have allowed the firm to become the world’s leading furniture retailer? lo1
Understand foreign market entry strategies. lo1
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