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introduction global business

Questions and Answers of Introduction Global Business

3. Identify the causes of poor ethical decision making in international business organizations.
2. Show how important it is for managers to consider ethical issues when making strategic and operating decisions.
1. Explain the source and nature of ethical issues and dilemmas in an international business.
4. Using Dubai as an example, do you believe that cultural similarities among people can outweigh cultural differences that exist in terms of doing business together in the future?
3. If you were in a position to advise a Western company that was considering doing business in UAE for the first time, what would your advice be?
2. What kinds of misunderstanding, if any, are likely to arise between Western-based visitors and people from the UAE during World Expo 2020?
1. What forces shaped the culture in the country of UAE and Dubai in particular? How similar or different are these forces from those that shaped the culture of Western nations?
2. Asian cultures exhibit significant differences in business etiquette when compared to Western cultures. For example, in Thailand it is considered offensive to show the sole of the shoe or foot to
1. You are preparing for a business trip to Venezuela where you will need to interact extensively with local professionals.Therefore, you consider collecting information regarding local culture and
6. A Western firm is trying to get a licence from the government of a developing nation to set up a factory in that country. The firm knows the factory will bring many benefits to the country. It
5. “It is unreasonable to expect Western businesses active in developing nations to adhere to the same ethical standards that they use at home.” Evaluate this statement.
4. Choose two countries that appear to be culturally diverse. Compare the cultures of those countries and then indicate how cultural differences influence (a) the costs of doing business in each
3. What are the implications for an international business of differences in the dominant religions and/or ethical systems of countries in which it is based?
2. Do you think that business practices in an Islamic country are likely to differ from business practices in Canada, and if so, how?
1. Outline why the culture of a country might influence the costs of doing business in that country.Illustrate your answer with examples.
5. Culture is not a constant; it evolves over time. Economic progress and globalization seem to be two important engines of cultural change. One danger confronting a company that goes abroad for the
4. Geert Hofstede studied how culture relates to values in the workplace. Hofstede isolated four dimensions that he claimed summarized different cultures: power distance, uncertainty avoidance,
3. Individual and group associations have different implications for business. Class consciousness also affects business to different degrees. In Canada and the United States, where social mobility
2. The social structure of a society refers to its basic social organization. Two main dimensions along which social structures differ are the individual–group dimension and the stratification
1. Culture is a complex whole that includes knowledge, beliefs, art, morals, law, customs, and other capabilities acquired by people as members of society. Values and norms are the central components
3. Are there cultural differences between Canada and the United States affecting businesses?Give some business examples.
2. Give examples that you have witnessed or hear about when local customs are not fully understood by foreign businesses.
1. Can a cultural misstep be so important that it could dramatically affect a business deal?
2. Can adherence to any religion, on a country-wide basis, coexist with modern business practices? Give examples.
1. List any other ways that you can think of where religion promotes or hinders modern capitalism.
2. Can you think of other similar examples from other countries?
1. Is it easier for a local company or an international company to break through social and class barriers?
5. Demonstrate an appreciation for the economic and business implications of cultural change.
4. Recognize how differences in social culture influence values in the workplace.
3. Identify the business and economic implications of differences in culture.
2. Identify the forces that lead to differences in social culture.
1. Explain what is meant by the culture of a society.
6. What does Ghana need to do to remain on its current track of sustained economic growth?
5. What is the difference between the approach of Nigeria toward oil revenues and that of Ghana(the Nigerian experience is documented in the Country Focus feature in this chapter)? Which approach is
4. If Ghana had discovered large oil reserves in the 1980s instead of the 2000s, do you things might have played out differently? Why?
3. What external forces helped to persuade Rawlings to change political and economic practices in Ghana? Do you think he would have made the changes he did without these external forces?
2. What where the main changes that Jerry Rawlings made in the Ghanaian political and economic systems? What were the consequences of these changes? What are the lessons here?
1. After gaining independence from Britain, Ghana’s economy languished for three decades. Why was this the case? What does the Ghana experience teach you about the connection between economic and
6. You are the CEO of a company that has to choose between making a $100-million investment in Russia or the Czech Republic. Both investments promise the same long-run return, so your choice is
5. During the late 1980s and early 1990s, China was routinely cited by various international organizations such as Amnesty International and Freedom Watch for major human rights violations, including
4. The Nobel Prize-winning economist Amartya Sen argues that the concept of development should be broadened to include more than just economic development. What other factors does Sen think should be
3. What is the relationship between corruption in a country (for example, bribe taking by government officials) and economic growth? Is corruption always bad?
2. “A democratic political system is an essential condition for sustained economic progress.” Evaluate this statement.
1. “Free market economies stimulate greater economic growth, whereas state-directed economies stifle growth.” Evaluate this statement.
7. The attractiveness of a country as a market and/or investment site depends on balancing the likely long-run benefits of doing business in that country against the likely costs and risks
6. The shift to market-based economies needs a number of steps, including deregulation, privatization, and the creation of a legal system protecting property rights.
5. Many countries are now in a state of transition. There is a marked shift away from totalitarian governments and command or mixed economic systems and toward democratic political institutions and
4. Countries differ in their level of development. The rate of economic progress in a country seems to depend on the extent to which that country has a well-functioning market economy in which
3. Differences in the structure of law between countries can have important implications for the practice of international business. The degree to which property rights are protected can vary
2. There are three broad types of economic systems: a market economy, a command economy, and a mixed economy. In a market economy, prices are free of controls and private ownership is predominant. In
1. Political systems can be assessed according to two dimensions: the degree to which they emphasize collectivism as opposed to individualism, and the degree to which they are democratic or
2. What would you say to someone who responds that “bribery is just a cost of doing business”?
1. What would you do, as a senior executive, when presented with a case such as this?
2. What are the broader implications to the country’s economy, and its people, of having such a highly regulated economy for over 15 years?
1. What do you think will happen if oil prices continue to stay below $100 a barrel?
2. Should a company try to influence a country to become less corrupt? How would it do this?
1. How can a company operate in a country such as Nigeria and yet still adhere to its own ethical framework?
7. Explain the implications of changes in political economies.
6. Describe how transition economies are moving toward market-based systems.
5. Summarize the main changes that are currently reshaping the political, economic, and legal systems worldwide.
4. Explain what determines the level of economic development of a nation.
3. Explain how the legal systems of countries differ.
2. Distinguish how the economic systems of countries differ.
1. Give examples of how the political systems of countries differ.
3. Can a company grow too quickly? What are the problems associated with fast growth?
2. Is there anything wrong with a company like Tim Hortons sticking to a marketplace that it knows well?
1. How can a company like Tim Hortons maintain its quality when it is operating in different markets around the globe?
2. You are working for a company that is considering investing in a foreign country.Management has requested a report regarding the attractiveness of alternative countries based on the potential
1. Your company has developed a new product that is expected to achieve high penetration rates in all the countries in which it is introduced, regardless of the average income status of the local
6. If current trends continue, China may be the world’s largest economy by 2050. Discuss the possible implications for such a development for:a. the world trading system.b. the world monetary
5. How might the Internet and the World Wide Web affect international business activity and the globalization of the world economy?
4. “Ultimately, the study of international business is no different from the study of domestic business.Thus, there is no point in having a separate course on international business.” Evaluate
3. How have changes in technology contributed to the globalization of markets and production?Would the globalization of production and markets have been possible without these technological changes?
2. “The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who are going to work in small firms.”
1. Describe the shifts in the world economy over the past two decades. What are the implications of these shifts for international businesses based in Great Britain? North America?
2. France has long been one of the most-favoured locations for inward foreign direct investment.Will this change in the future?
1. What does the fact that McDonald’s has so many locations in France, which are also some of the most profitable locations around the world, tell you about the feelings of a large proportion of
2. The electronics business is very competitive. What can Hisense do to remain competitive?
1. China, like much of the world, is in the middle of an economic slowdown. What steps can a business take to lessen the impacts of slowdowns/recessions?
2. Are companies with such global webs of linkages only found in the manufacturing sector? Can you give any such examples?
1. Who benefits when a company such as Vizio outsources its manufacturing and engineering work? Who is negatively affected by this?
6. Show how the process of globalization is giving rise to numerous opportunities and challenges that business managers must confront in Canada and beyond.
5. Explain the main arguments in the debate over the impact of globalization on job security, income levels, labour and environmental policies, and national sovereignty.
4. Illustrate the changing demographics of the global economy.
3. Recognize why globalization and innovation are now proceeding at a rapid rate.
2. Examine the rise of global institutions.
1. Define the term globalization.
Many have criticized offshoring, but how might this activity be seen as part of an overseas CSR strategy?
Using a resource-based view, explain why some fi rms improve their economic performance by adopting a CSR strategy, whereas others achieve no or damaging results.
Devise two examples: one in which a corporation’s participation in a social issue adds value to the fi rm and one in which it decreases value in the eyes of the stakeholders.
Describe at least three topics or issues you would expect to see addressed in a code of conduct by a corporation from your home country.
Give an example of global sustainability that demonstrates your understanding of the concept.
Devise your own example of how a fi rm might differentiate itself in terms of corporate governance.
Given the arguments for converging or diverging corporate governance around the world, which do you think is more likely to occur and why?
How would you explain stewardship theory?
Explain how three aspects of recent globalization have in uenced corporate governance.
How does the typical ownership structure found in a Canadian fi rm differ from one in the US, Europe, or Japan?
Brie y summarize the three external governance mechanisms.
Explain how independence, deterrence, and norms allow a board of directors to effectively control a corporation.
Why would fi rms want to create an interlocking directorate?

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