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introduction global business

Questions and Answers of Introduction Global Business

4-1 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?The West African nation of Ghana has emerged as one of the fastestgrowing countries in sub-Saharan Africa
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?The West African nation of Ghana has emerged as one of the
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?The West
2. What where the main changes that Gerry Rawlings made in the Ghanaian political and economic systems? What were the consequences of these changes? What are the lessons here?The West African nation
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
5. Read the Country Focus on Venezuela under the leadership of Hugo Chávez; then answer the following questions:a. Under Chávez’s leadership, what kind of economic system was put in place in
3. What is the relationship between corruption in a country (i.e., government officials taking bribes) and economic growth? Is corruption always bad?
3-4 Explain the implications for management practice of national difference in political economy.
3-3 Describe how transition economies are moving toward market-based systems.
3-2 Identify the macropolitical and macroeconomic changes occurring worldwide.
3-1 Explain what determines the level of economic development of a nation.
4. On balance, do you think that the kind of outsourcing undertaken by Apple is a good thing or a bad thing for the American economy?Explain your reasoning?In its early days, Apple usually didn’t
3. What are the potential ethical problems associated with outsourcing assembly jobs to Foxconn in China? How might Apple deal with these?In its early days, Apple usually didn’t look beyond its own
2. In addition to Apple, who else benefits from Apple’s decision to outsource assembly to China? Who are the potential losers here?In its early days, Apple usually didn’t look beyond its own
1. What are the benefits to Apple of outsourcing the assembly of the iPhone to foreign countries, and particularly China? What are the potential costs and risks to Apple?In its early days, Apple
2. You are working for a company that is considering investing in a foreign country. Investing in countries with different traditions is an important element of your company’s long-term strategic
1. As the drivers of the globalization continue to pressure both the globalization of markets and globalization of production, we continue to see the impact of greater globalization on worldwide
14-5 Describe how countertrade can be used to facilitate exporting.
14-4 Recognize the basic steps involved in export financing.
14-3 Identify information sources and government programs that exist to help exporters.
14-2 Identify the steps managers can take to improve their firm’s export performance.
14-1 Explain the promises and risks associated with exporting.
12-5 Explain the pros and cons of using strategic alliances to support global strategies.
12-4 Identify the different strategies for competing globally and their pros and cons.
12-3 Understand how pressures for cost reductions and pressures for local responsiveness influence strategic choice.
12-2 Recognize how firms can profit by expanding globally.
12-1 Explain the concept of strategy.
10-6 Compare and contrast the differences among translation, transaction, and economic exposure, and what managers can do to manage each type of exposure.
10-5 Identify the merits of different approaches toward exchange rate forecasting.
10-4 Understand the different theories explaining how currency exchange rates are determined and their relative merits.
10-3 Recognize the role that forward exchange rates play in insuring against foreign exchange risk.
10-2 Understand what is meant by spot exchange rates.
10-1 Describe the functions of the foreign exchange market.
6-5 Understand the important implications that international trade theory holds for business practice.
6-4 Explain the arguments of those who maintain that government can play a proactive role in promoting national competitive advantage in certain industries.
6-3 Recognize why many economists believe that unrestricted free trade between nations will raise the economic welfare of countries that participate in a free trade system.
6-2 Summarize the different theories explaining trade flows between nations.
6-1 Understand why nations trade with each other.
2-4 Explain the implications for management practice of national differences in political economy.
2-3 Understand how the legal systems of countries differ.
2-2 Understand how the economic systems of countries differ.
2-1 Understand how the political systems of countries differ.
1-5 Understand how the process of globalization is creating opportunities and challenges for business managers.
1-4 Explain the main arguments in the debate over the impact of globalization.
1-3 Describe the changing nature of the global economy.
1-2 Recognize the main drivers of globalization.
1-1 Understand what is meant by the term globalization.
•explain how the balanced scorecard links strategy formulation to financial outcomes.
•describe three competitive strategies that a firm can adopt to achieve sustainable competitive advantage and explain how they influence management accounting practices;
•describe the learning curve and compute the average and incremental labour hours for different output levels.
•identify and explain the six steps required to estimate cost functions from past data;
•explain the meaning of the term correlation coefficient;
•explain, calculate and interpret the coefficient of determination test of reliability;
•calculate regression equations using the high–low, scattergraph and least-squares techniques;
•identify and describe the different methods of estimating costs;
•explain just-in-time purchasing.
•calculate the optimal safety stock when demand is uncertain;
•determine whether or not a company should purchase larger quantities in order to take advantage of quantity discounts;
•calculate the EOQ using the formula and tabulation methods;
•justify which costs are relevant and should be included in the calculation of the economic order quantity (EOQ);
•explain the meaning of the term shadow prices.
•formulate the initial linear programming model using the simplex method;
•use graphical linear programming to find the optimum output levels;
•explain the circumstances when the graphical method can be used;
•identify and describe the purposes of a standard costing system;
•explain the role of standard costing within an ABC system.
•explain the factors that influence the decision to investigate a variance and describe the different methods that can be used to determine whether an investigation is warranted;
•explain and calculate planning and operating variances;
•explain and calculate material mix and yield and sales mix and quantity variances;
•prepare a set of accounts for a standard costing system;
•identify and explain the approaches that can be used to reduce the dysfunctional consequences of short-term financial measures.
•explain why performance measures may conflict with the net present value decision model;
•distinguish between non-divisionalized and divisionalized organizational structures;
•explain two methods of transfer pricing that have been advocated to resolve the conflicts between the decision-making and performance evaluation objectives;
•identify and describe five different transfer pricing methods;
•outline the main features of environmental cost management;
•explain the role of benchmarking and business process engineering within the cost management framework;
•describe activity-based cost management;
•describe reverse engineering, value analysis and functional analysis;
•explain life-cycle costing and describe the typical pattern of cost commitment and cost incurrence during the three stages of a product’s life cycle;
•distinguish between the features of a traditional management accounting control system and cost management;
•explain the implications of pursuing a diversification strategy.
•explain and apply the maximin, maximax and regret criteria;
•describe and calculate the value of perfect and imperfect information;
•explain the meaning of the terms standard deviation and coefficient of variation as measures of risk and outline their limitations;
•justify why the payback and ARR methods are widely used in practice;
•explain the limitations of payback and ARR;
•calculate NPV, IRR, the payback period and ARR;
•explain the concepts of net present value (NPV), internal rate of return (IRR), payback method and accounting rate of return (ARR);
•describe the initiation, authorization and review procedures for the investment process.
•explain how sensitivity analysis can be applied to investment appraisal;
•describe the criticisms relating to traditional budgeting.
•describe zero-based budgeting (ZBB);
•describe activity-based budgeting;
•describe the use of computer-based financial models for budgeting;
•identify and describe the various stages in the budget process;
•identify and describe the six different purposes of budgeting;
•explain how budgeting fits into the overall planning and control framework;

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