Case 1

Suppose you get a job at Kismet Indemnity, a life insurance company. In its 45-year history, Kismet has never done any international business. Now its president, Randall Fraser, wants to expand abroad. You have noted in meetings that he seems to lack much awareness of the role of culture. Write a letter to him in which you explain why culture matters in international business. Be sure to speculate on the effects of various dimensions of culture on sales of life insurance.

Case 2

Ethical Dilemma: Suppose you work for a multinational firm and are posted to Bogota, Colombia. After renting a house in a posh neighborhood, you hire a full-time housekeeper to perform household chores, a common practice among wealthy Colombians. A colleague at work tells you that local housekeepers are typically poor women who live in Bogota's slums and earn about $200 a month. As an executive, you feel guilty about paying such a cheap wage when you can afford much more, but for cultural and socioeconomic reasons, your colleague insists you cannot pay more than the going rate. Doing so might embarrass your housekeeper and risk upsetting the economic balance in her community. Analyze this dilemma. Do you pay your housekeeper the customary local rate or a higher wage? Justify your decision. Can you think of any creative solutions to this dilemma?