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introduction global business

Questions and Answers of Introduction Global Business

3. Given the arguments relating to the new trade theory and strategic trade policy, what kind of trade policy should business be pressuring government to adopt?
2. Whose interests should be the paramount concern of government trade policy—the interests of producers(businesses and their employees) or those of consumers?
1. Do you think governments should consider human rights when granting preferential trading rights to countries? What are the arguments for and against taking such a position?
2. The number of member nations of the World Trade Organization has increased considerably in recent years. In addition, some nonmember countries have observer status in the WTO. Such status requires
1. You work for a pharmaceuticals company that hopes to provide products and services in New Zealand. Yet management’s current knowledge of this country’s trade policies and barriers is limited.
3. The restrictions imposed by China on rare earth metals has resulted in some companies (e.g., Toyota, Renault, Tesla) starting to look for alternatives. They plan to use parts that do not include
2. Given that 97 percent of rare earth metal production is now done in China, an increase from 27 percent to 97 percent between 1990 and 2010, do you think countries such as Australia, Canada, and
1. Which groups benefitted the most from China imposing an export quota on rare earth metals? Did it give the Chinese domestic manufacturers a significant cost advantage? Did it result in
8-6 Identify the implications for managers of the theory and government policies associated with FDI.
8-5 Explain the range of policy instruments that governments use to influence FDI.
8-4 Describe the benefits and costs of FDI to home and host countries.
8-3 Understand how political ideology shapes a government’s attitudes toward FDI.
8-2 Explain the different theories of FDI.
8-1 Recognize current trends regarding foreign direct investment (FDI) in the world economy.
8. The world’s poorest countries are at a competitive disadvantage in every sector of their economies. They have little to export. They have no capital; their land is of poor quality; they often
7. Drawing upon the new trade theory and Porter’s theory of national competitive advantage, outline the case for government policies that would build national competitive advantage in
6. Reread the Country Focus on moving white-collar jobs offshore.a. Who benefits from the outsourcing of skilled whitecollar jobs to developing nations? Who are the losers?b. Will developed nations
5. Reread the Country Focus “Is China a Neomercantilist Nation?”a. Do you think China is pursuing an economic policy that can be characterized as neo-mercantilist?b. What should the United
4. What are the potential costs of adopting a free trade regime? Do you think governments should do anything to reduce these costs? What?
3. Unions in developed nations often oppose imports from low-wage countries and advocate trade barriers to protect jobs from what they often characterize as“unfair” import competition. Is such
2. Is free trade fair? Discuss!
1. Mercantilism is a bankrupt theory that has no place in the modern world. Discuss.
2. Food in an integral part of understanding different countries, cultures, and lifestyles. You run a chain of high-end premium restaurants in the United States, and you are looking for unique
1. The World Trade Organization International Trade Statistics is an annual report that provides comprehensive, comparable, and updated statistics on trade in merchandise and commercial services. The
4. What international trade theory (or theories) best explain the rise of India as a major exporter of pharmaceuticals?One of the great success stories in international trade in recent years has been
3. Do the benefits from trade with the Indian pharmaceutical sector outweigh the losses?One of the great success stories in international trade in recent years has been the strong growth of India’s
2. Who might have lost out as a result of the recent rise of the Indian pharmaceutical industry?One of the great success stories in international trade in recent years has been the strong growth of
1. How might (a) U.S. pharmaceutical companies and (b) U.S. consumers benefit from the rise of the Indian pharmaceutical industry?One of the great success stories in international trade in recent
7-5 Explain the implications for managers of developments in the world trading system.
7-4 Describe the development of the world trading system and the current trade issue.
7-3 Summarize and explain the arguments against strategic trade policy.
7-2 Understand why governments sometimes intervene in international trade.
7-1 Identify the policy instruments used by governments to influence international trade flows.
13. Multinational corporations that are practicing business-focused sustainability integrate a focus on market orientation, addressing the needs of multiple stakeholders, and adhering to corporate
12. To make sure that ethical issues are considered in international business decisions, managers should(a) favor hiring and promoting people with a wellgrounded sense of personal ethics; (b) build
11. The concept of justice developed by John Rawls suggests that a decision is just and ethical if people would allow it when designing a social system under a veil of ignorance.
10. Rights theories recognize that human beings have fundamental rights and privileges that transcend national boundaries and cultures. These rights establish a minimum level of morally acceptable
9. Kantian ethics state that people should be treated as ends and never purely as means to the ends of others.People are not instruments, like a machine. People have dignity and need to be respected
8. Utilitarian approaches to ethics hold that the moral worth of actions or practices is determined by their consequences, and the best decisions are those that produce the greatest good for the
7. The Friedman doctrine states that the only social responsibility of business is to increase profits, as long as the company stays within the rules of law. Cultural relativism contends that one
6. Moral philosophers contend that approaches to business ethics such as the Friedman doctrine, cultural relativism, the righteous moralist, and the naive immoralist are unsatisfactory in important
5. Unethical behavior is rooted in poor personal ethics, societal culture, the psychological and geographic distances of a foreign subsidiary from the home office, a failure to incorporate ethical
4. Ethical dilemmas are situations in which none of the available alternatives seems ethically acceptable.
3. The most common ethical issues in international business involve employment practices, human rights, environmental regulations, corruption, and social responsibility of multinational corporations.
2. Ethical issues and dilemmas in international business are rooted in the variations among political systems, law, economic development, and culture from nation to nation.
1. The term ethics refers to accepted principles of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization. Business ethics are the
7. Reread the Management Focus on Unocal, and answer the following questions:a. Was it ethical for Unocal to enter into a partnership with a brutal military dictatorship for financial gain?b. What
6. Milton Friedman stated in his famous article in The New York Times in 1970 that “the social responsibility of business is to increase profits.” Do you agree? If not, do you prefer that
5. A manager from a developing country is overseeing a multinational’s operations in a country where drug trafficking and lawlessness are rife. One day, a representative of a local “big man”
4. Do you think facilitating payments (speed payments)should be ethical?
3. Under what conditions is it ethically defensible to outsource production to the developing world where labor costs are lower when such actions also involve laying off long-term employees in the
2. Drawing upon John Rawls’s concept of the veil of ignorance, develop an ethical code that will (a) guide the decisions of a large oil multinational toward environmental protection and (b)
1. A visiting American executive finds that a foreign subsidiary in a less developed country has hired a 12-year-old girl to work on a factory floor, in violation of the company’s prohibition on
2. The use of bribery in the business setting is an important ethical dilemma many companies face both domestically and abroad. The Bribe Payers Index is a study published every three years to assess
1. Promoting respect for universal human rights is a central dimension of many countries’ foreign policy.As history has shown, human rights abuses are an important concern worldwide. Some countries
4. Do you think that bitcoins were created as a weapon intended to damage central banking and money-issuing banks?Bitcoin is an open-source, peer-to-peer digital currency introduced to the world on
3. Do you think the bitcoin system is “evil” as Paul Krugman suggests?Is it similar to a Ponzi scheme?Bitcoin is an open-source, peer-to-peer digital currency introduced to the world on January
2. If bitcoins are used to buy drugs, firearms, or other products that are considered illegal in the country in which the bitcoins are being used, does that make bitcoins unethical?Bitcoin is an
1. Do you think bitcoins are approaching being unethical monetary instruments without technically carrying a value similar to “real”money?Bitcoin is an open-source, peer-to-peer digital currency
13. The value systems and norms of a country can affect the costs of doing business in that country.
12. One danger confronting a company that goes abroad for the first time is being ill-informed. To develop cross-cultural literacy, international businesses need to employ host-country nationals,
11. Culture is not a constant; it evolves. Economic progress and globalization seem to be two important engines of cultural change.
10. Geert Hofstede studied how culture relates to values in the workplace. He isolated five dimensions that he claimed summarized different cultures: power distance, uncertainty avoidance,
9. Formal education is the medium through which individuals learn skills and are socialized into the values and norms of a society. Education plays an important role in the determination of national
8. Language is one defining characteristic of a culture. It has both spoken and unspoken dimensions. In countries with more than one spoken language, we tend to find more than one culture.
7. Religion may be defined as a system of shared beliefs and rituals that is concerned with the realm of the sacred. Ethical systems refer to a set of moral principles, or values, that are used to
6. All societies are stratified into different classes.Class-conscious societies are characterized by low social mobility and a high degree of stratification.Less class-conscious societies are
5. In some societies, the individual is the basic building block of social organization. These societies emphasize individual achievements above all else. In other societies, the group is the basic
4. 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
3. Values and norms are influenced by political and economic philosophy, social structure, religion, language, and education.
2. Values and norms are the central components of a culture. Values are abstract ideals about what a society believes to be good, right, and desirable. Norms are social rules and guidelines that
1. Culture is a complex whole that includes knowledge, beliefs, art, morals, law, customs, and other capabilities acquired by people as members of society.
6. Reread the Management Focus on DMG-Shanghai and answer the follow questions:a. Why do you think it is so important to cultivate guanxi and guanxiwang in China?b. What does the experience of DMG
5. Reread the Country Focus about Islamic capitalism in Turkey. Then, answer the following questions:a. Can you see anything in the values and norms of Islam that is hostile to business?b. What does
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 international business of differences in the dominant religion or ethical system of a country?
2. Do you think that business practices in an Islamic country are likely to differ from business practices in a Christian country? 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.
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?The United Arab
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?The United Arab Emirates (UAE) was established in
2. What kinds of misunderstanding, if any, are likely to arise between Western-based visitors and people from the UAE during World Expo 2020?The United Arab Emirates (UAE) was established in 1971 and
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?The United Arab
5-5 Explain how managers can incorporate ethical considerations into their decision making.
5-4 Describe the different philosophical approaches to ethics.
5-3 Identify the causes of unethical behavior by managers.
5-2 Recognize an ethical dilemma.
5-1 Understand the ethical issues faced by international businesses.
2. Managers at your firm are very concerned about the influence of terrorism on its long-term strategy. To counter this issue, the CEO has indicated you must identify the countries where terrorism
1. Increased instability in the global marketplace can introduce unanticipated risks in a company’s daily transactions. As such, your company must evaluate these commercial transaction risks for
3. Reread the Country Focus on India, and answer the following questions:a. What kind of economic system did India operate under during 1947–1990? What kind of system is it moving toward today?
2. You are a senior manager in a U.S. automobile company considering whether to invest in production facilities in China, Russia, or Germany. These facilities will serve local market demand. Evaluate
1. What is the relationship among property rights, corruption, and economic progress? How important are anticorruption efforts in the effort to improve a country’s level of economic development?
4. Political risks in Egypt seem to be increasing again, and the country seems to be retreating from democracy, largely due to intervention by the military.As a manager in an international business,
3. What dangers do you see in the current trajectory of the Egyptian economy? What are the implications of these dangers for foreign companies that might consider doing business in Egypt? What do you
2. What do you think the Egyptian government needs to do in order to get the economy growing again and to attract foreign capital? What are the risks to the government of taking such actions?With 83
1. What were the underlying causes, economic and political, of the collapse of the Mubarak regime?With 83 million people, Egypt is the most populous Arab state. On the face of it, Egypt made
4-5 Demonstrate an appreciation for the economic and business implications of cultural change.
4-4 Recognize how differences in social culture influence values in business.
4-3 Identify the business and economic implications of differences in culture.
4-2 Identify the forces that lead to differences in social culture.

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