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business
business communication

Questions and Answers of Business Communication

Summarize the four major factors that determine exchange rates.
What is the relationship between inflation, interest rates, and currency values?
What was the Bretton Woods agreement, and what is its legacy today?
Distinguish the two systems that make up the exchange rate system today.
What is the difference between the international monetary system and the global financial system?
What are the key players in the international monetary and financial systems?
What are the aims of the World Bank and the International Monetary Fund?
Firms with a global organizational culture have several common characteristics. They seek a global identity, value a global perspective in all undertakings, adopt a common language, promote
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 has chemical
1. In what ways is Carlos Ghosn a visionary leader? What traits does he possess that are typical of a visionary leader?2. What is the nature of Nissan’s international strategy? Is the firm’s
Visit the Web sites 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
Multinational firms play a key role in globalization. Various news organizations prepare classifications and rankings of MNEs (e.g., Financial Times, Business Week, Forbes, Fortune). Find two such
You work for an MNE that makes and markets cellular telephones. Senior managers want to begin selling the phones in Latin America. To pursue a transnational strategy, management wants to minimize
Describe the requisite dimensions that characterize truly successful, contemporary international firms.
Define visionary leadership. What are the traits of a manager who has visionary leadership?
Describe the distinction between multidomestic and global industries.
Describe the integration-responsiveness framework. What are the specific pressures for local responsiveness and for global integration?
What is the difference between global strategy and multidomestic strategy? Visit the Web site of Dell Computer (www.dell.com). Does Dell generally apply a global strategy or a multidomestic strategy?
Define transnational strategy. Give examples of firms that apply a transnational strategy.
What is the difference between a centralized and a decentralized organizational structure? Why do firms often prefer to have a centralized structure?
What are the different organizational structures for international operations? Which structure(s) is most associated with global strategy?
What is the global matrix structure? What are the advantages and disadvantages of this approach?
Target® is a large retailer with about 1,500 stores in the United States, but very few in other countries. It has a reputation for merchandising thousands of chic yet inexpensive products for the
Steve Kilmeade is the Export Manager at Braveheart Industries, a manufacturer of office furnishings. He has identified Russia as a promising market and decides to attend a furniture trade fair in
1. Do you believe ABD’s products are in a state of readiness to begin exporting to Europe? Why or why not? Are the products ready for exporting to emerging markets (e.g., China, Mexico, Russia)?
China is a huge attractive market, with growing affluence. Before exporting to China, most firms conduct market research to acquire a fuller understanding of the country’s market situation. Two
Walmart is a huge retailer, but gets only about a quarter of its sales from outside the United States. Coles is one of the largest retailers in Australia and gets very little of its sales outside
The United States Census Bureau tracks foreign trade statistics. Visit the site at www.census.gov/foreign-trade and find the most recent versions of the report “Profile of U.S. Exporting
What is a global market opportunity? What types of opportunities do firms seek abroad?
Identify and explain the six major tasks in global market opportunity assessment.
Identify the issues managers consider when they analyze organizational readiness to internationalize.
Describe the characteristics of products or services most likely to sell well in foreign markets
Summarize the screening methodology for potential country markets.
What are the typical variables used in indexing and ranking?
What types of variables should the researcher consider when screening for each of the following: export markets, foreign direct investment, and global sourcing?
What tasks does assessing industry market potential entail?
What are the major issues to consider when selecting foreign business partners?
How can firms estimate company sales potential?
Suppose you’ve been hired by a young, small firm that manufactures office furniture. The firm needs to generate more sales and wants to expand abroad. Given that internationalization is risky,
Antenna Communications Technologies, Inc. (ACT) is a small satellite technology communications firm. Its product is a multibeam antenna that allows customers in the broadcast industry to receive
You are hired by EcoPure Industries, a manufacturer of components for hybrid motor vehicles. EcoPure emphasizes social responsibility in its international dealings and regularly employs three foreign
1. Do you see any problems with Philip Austin’s plan for European expansion? Do you support his entrepreneurial approach to exporting? What should be the features of a more systematic approach to
You work for a firm that manufactures children’s toys. Despite little international experience, management wants to start exporting. Your boss understands the importance of using strong
Suppose you work for a major trading company exporting timber from Canada; petroleum from Britain; and processed food products from the United States. To enhance your career prospects, you want to
Suppose your employer wants to export its products and get paid through letter of credit (LC). You have volunteered to become the company’s LC expert. One way to accomplish this is to visit
What are the major foreign market entry strategies? What are the characteristics of each?
Describe the typical internationalization process a firm may use in expanding abroad.
What is exporting? What are its advantages and disadvantages?
Describe the organizing framework for exporting. What steps should the firm follow to ensure exporting success?
What are the major tasks involved in managing export transactions?
Explain the payment methods that exporters typically use. What is the most reliable payment method, and how do exporters carry it out?
What are Incoterms, and why do firms follow them?
How would you go about identifying suitable foreign intermediaries?
What steps should the exporter take to ensure success in working with intermediaries?
Explain the nature, role, and risks involved in countertrade.
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
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
Media censorship standards vary worldwide. What is acceptable in some countries, such as nudity on television, criticizing authority, or revealing government secrets that affect national security, is
1. What were Ford’s motives and objectives for entering its collaborative venture with Volkswagen? Evaluate the extent to which Ford accomplished these objectives.2. What type of collaborative
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
Suppose your firm aims 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
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
What are the various types of FDI? Distinguish between acquisition and Greenfield.
What are the major motivations for undertaking FDI?
Delineate the types of firms involved in FDI. Are there any types of companies that can internationalize only via FDI? Elaborate.
Identify the different types of collaborative ventures. What type of venture is best for entering a culturally distant market like Malaysia? For the next generation of products in its industry? For
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
What factors should management consider when deciding where in the world to establish a factory? A marketing subsidiary? A regional headquarters?
Governments often provide incentives to encourage foreign firms to invest within their national borders. Why do governments encourage inward FDI?
What steps should the firm take to ensure the success of its international collaborative ventures?
Explain what steps a firm should take to successfully launch a collaborative venture with a foreign partner.
What are the risks of international retailing? What can a retailer—such as a department store or a restaurant—do to maximize its chances of succeeding in foreign markets?
Warner Brothers is doing a thriving business by licensing images of Harry Potter characters on its manufactured products, such as software, games, and clothing. However, illicit operators worldwide
Suppose upon graduation you get a job with Hitachi America, Ltd. (www.hitachi.us), the U.S. subsidiary of the giant Japanese firm. Hitachi uses various contractual entry strategies in its
You are the president of Dynamic Publishing, a firm that publishes textbooks. During a trip to various countries you assess the prospects for marketing Dynamic’s textbooks abroad. Visiting a
1. Subway brings to China various intellectual property in the form of trademarks, patents, and an entire business system. What are the specific threats to Subway’s intellectual property in China?
1. Suppose you’ve just started working in the office of the International Intellectual Property Alliance (IIPA; www.iipa.com). You learn that worldwide piracy of products is rampant. Your boss
Suppose you are an international entrepreneur and want to open your own franchise somewhere in Europe. You decide to conduct research to identify the most appropriate franchise and to learn how to
The International Licensing Industry Merchandisers’ Association (LIMA; www.licensing.org) is an organization with offices worldwide. It fosters the growth and expansion of licensing by helping
Distinguish between the major types of intellectual property: trademarks, copyrights, patents, industrial designs, and trade secrets.
What are the major characteristics of licensing? What are the major characteristics of franchising?
What are the advantages and disadvantages of licensing?
What are the advantages and disadvantages of franchising from the perspective of franchisors and franchisees?
Name the industry sectors that rely the most on franchising to tap foreign markets?
Define and distinguish the following contractual entry strategies: build-operate-transfer, turnkey projects, management contracts, and leasing.
What are the best practices in managing international contractual relationships?
Suppose you work for a firm that holds valuable intellectual property and is contemplating various international business projects. What strategies would you recommend to management for protecting
Revisit the opening vignette at the beginning of this chapter. Assume you have started a new job as a junior manager at a pharmaceutical firm. Management is considering having clinical trials of a
Suppose your new job is at Intel, the world’s largest semiconductor company and the inventor of the microprocessors found in many personal computers. Intel combines advanced chip design capability
You work for a congressman or member of parliament at your national legislature who must decide how to vote on a bill making its way through the legislative process. The bill is a new law that would
1. In the highly competitive global footwear industry, what are the most important decisions faced by firms like Wolverine in their drive to obtain superior performance? What approaches did Wolverine
You work for a software company that aims to outsource some of its software development to a foreign supplier. At present, you are considering three countries: Hungary, Mexico, and Russia. You need
International labor standards are complex and closely related to global sourcing. In particular, the use of sweatshops has attracted much attention. A sweatshop is a factory characterized by very low
Your firm just decided to outsource to India such back-office operations as accounting and basic finance functions. Unclear on how to proceed, management has asked you to find candidate suppliers in
Distinguish between outsourcing, global sourcing, and offshoring.
What is business process outsourcing? What are its implications for company strategy and performance?
What are the two strategic decisions that managers face regarding the firm’s international value chain, and what are their implications for company performance?
Identify the benefits that companies receive from global sourcing. Why do firms outsource to foreign suppliers?
What two countries are the most important global sourcing destinations today? What are the basic differences between these two countries, and what activities are typically outsourced to each?
What are the characteristics that make countries attractive as global sourcing destinations?

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