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business communication

Questions and Answers of Business Communication

In terms of compensation, why do many MNEs prefer to use a local manager rather than bring in an expatriate?
What are some of the primary differences in labor relations practices between Germany and Japan? Identify and discuss two of them.
1. Porter’s well-known 1990 study on the competitive advantage of nations describes factors that have promoted high rates of innovation in certain industries in certain countries. These are
1. When staffing the needs of the foreign subsidiary of a German company, what pool of candidates can the executive search firm (ESF) choose from? Why would an international ESF be more capable of
How can a country risk analysis help an international manager making decisions about which countries to invest in?
When predicting political risk, why will an MNE be interested in examining the economic development agenda and policies of the government?
Why does corruption tend to be more prevalent in poorer countries?
Describe one method for comparing the levels of corruption to be expected in two different countries.
Why is improving transparency important for investors and for local populations in less developed countries?
Why will an MNE be interested in the behavioral characteristics of the participants in a negotiation? How can such information help to improve its negotiating position?
In a negotiation, why would an MNE be interested in the acceptance zone of the other party?
What are some bargaining tactics that are used in international negotiating? Identify and describe three of them.
How do MNEs use integrative techniques in order to reduce their political risk? Describe an example.
How do MNEs use protective/defensive techniques in order to reduce their political risk? Describe an example.
How can we make a simple PEST analysis more robust, accurate and useful?
What is meant by the term political risk? Is there political risk in every country of the world? Explain.
Show, with an example, how the process of deregulation and liberalization is opening up opportunities for foreign investment in emerging markets.
How does macro political risk differ from micro political risk? Compare and contrast the two.
What are some factors that help to determine the degree of micro political risk? Identify and describe three of them.
What resources are available online for comparing political risk in two or more countries? Give two examples and say how their measures and rankings differ.
What difficulties would a manager face compiling an accurate Weighted Risk Assessment Model for two emerging market countries?
What is an adjusted present value calculation? Give examples of the kinds of country risks that could be incorporated into an APV calculated for a manufacturing investment in a less developed country.
1. What political risks do MNEs face in Russia? Identify and describe three of them. 2. What strengths would a foreign oil or energy firm bring to the country? What Russian needs would it help to
1. What are the main differences in the barriers and risks faced by foreign firms in the Japanese port system compared to Kenya’s Mombasa? 2. Why is it difficult for foreign firms to challenge
In determining parent-subsidiary relationships, how does a polycentric solution differ from an ethnocentric or geocentric solution? Compare and contrast all three.
When would a multinational use a lead strategy to hedge a risk? When would a multinational use a lag strategy for this purpose? In each case, give an example. A lead strategy is a choice by an MNE to
When might an MNE use a forward exchange contract (a contract with a bank to buy or sell foreign exchange at a future date, with the exchange rate and value fixed today)? When might the firm decide
What role does net present value (NPV) play in the review of capital expenditure proposals? Give an example.
How can country risk affect the computation of NPV? Will the risk result in the MNE wanting a higher or a lower NPV? Explain.
Why do parent and local subsidiaries sometimes differ in their calculation of NPV for a particular project or expenditure? How can this difference be resolved?
What are some of the financing alternatives available to MNEs that are not available to domestic firms? Give an example.
What is meant by the term working capital, and what are two of the most common ways that parent companies can provide this capital to their subsidiaries? What are two ways in which the parent can
How can an MNE shift profits through the use of transfer pricing? Provide an example.
Of what value is multilateral netting in helping MNEs to manage cash flows? Give an example.
If a foreign country is facing high inflation, what are three financial strategies that the local multinational unit might employ? Identify and describe each.
Why are MNEs interested in the translation and consolidation of financial statements? Of what practical value is this activity to the company?
Under what conditions will an MNE face translation exposure? What financial strategy might the organization use to minimize this exposure?
When might an MNE face transaction exposure? What is a financial strategy that the firm could use to minimize this risk?
What is meant by the term economic exposure? What is a financial strategy that an MNE could use to minimize this risk?
1. Why has insurance changed from local salespeople to an Internetprovided “universal” product? 2. Why was Swedish-based Skandia so successful in the US market? 3. Was CEO Jan Carendi
1. Did Repsol make a good decision in acquiring YPF in 1998–1999? 2. What is the difference between foreign direct investment and foreign portfolio investment? Is this a relevant issue in the
What are the ultimate objectives of the EU? Identify and describe them.
Why will marketing strategies in the EU have to reflect a concern for pricing? A concern for positioning? Give an example of when each would be the most important consideration.
What is the likely future of direct marketing in the EU? Defend your answer.
What are three major manufacturing considerations for companies doing business in the EU? Identify and describe each.
How important is it for EU managers to have a global perspective?
How can trade laws be used by EU firms to keep out global competitors?
The EU accepted 10 new members into the union in 2004 and another 2 in 2007. Are these members fully integrated?
How are the 12 new entrants into the union likely to affect employment in the EU15?
Will the EU bring about the Single European Market? What type of changes will have to take place for this to happen? Identify and describe three of them.
What is the competitive status of the main EU economies in terms of labor productivity and investment spending? Based on your answer, what is your overall evaluation of this status?
How can firms doing business in the EU use competitive intelligence? Identify and describe two major steps that can be used in this process.
What types of regional incentives do countries offer MNEs willing to set up operations in their locales? Identify and describe two of them.
In addition to regional incentives, what other evaluation criteria should MNEs employ when deciding where in the EU to establish operations? Identify and describe three of them.
In formulating a strategy for doing business in the EU, there are two primary areas of initial consideration: national responsiveness and economic integration. What does this statement mean? Be sure
What do companies that want to export to the EU need to know about doing business there? Discuss five facts or strategies that would be of value to them.
In gaining a foothold in the EU, when is it most effective to opt for an acquisition over an alliance? When is a strategic alliance a better choice? In each case, provide an example.
1. Why did Accor concentrate on the French and European markets before expanding into other regions? 2. How are acquisitions an important part of Accor’s expansion strategy? 3. What are the
1. How can Carrefour compete with local retailers in North America? 2. How can Carrefour compete with local retailers in Asia? 3. What strategy does Carrefour need to succeed in Europe? 4. What is
List some of the factors underlying the competitive advantages of Japanese firms, developed during the rapid growth era of the 1950s, 1960s and 1970s.
How can an economy in recession present new opportunities for foreign investors?
What strategic and structural changes are many Japanese firms making in response to the changing economic and competitive environment they face?
What kinds of social and cultural characteristics of the Japanese underlie their proficiency in manufacturing?
Why have inflows of FDI into Japan historically remained lower than FDI outflows?
How would a foreign firm wanting to establish a sales and marketing operation in Japan need to adapt to succeed?
What have been the main advantages and disadvantages for many Japanese firms of relying on domestic markets rather than internationalizing?
How can we explain Japan’s deepening trading relationship with China?
What has triggered the restructuring of capital markets in Japan, and what have been the effects on Japanese corporations?
1. What broad economic and specific corporate pressures have resulted in the need for a radical shake-up of Nissan? 2. In the context of traditional Japanese employment and working practices and
1. Explain why, over the course of Canon’s internationalization process, certain functions have been moved or expanded to certain global locations. 2. Why has it been important for Canon to
How high is the Canadian standard of living? Of what value is this information to a company interested in doing business in Canada?
How might the creation of an “Enterprise for the Americas” affect on the LAIA and Ancom? Give an example.
How is Mexico using its petroleum cluster to link itself to the North American triad?
How is Mexico using its automotive cluster to link itself to the North American triad?
Why are these linkages to the North American triad likely to be economically advantageous to Mexico? Cite two reasons.
Is the Competition Act of any concern to US firms, given that the FTA has eliminated most trade restrictions? Explain.
What do companies seeking to set up businesses in Canada need to know about labor relations in that country? Identify and discuss three areas of importance.
What are the most important provisions of the Free Trade Agreement and how do they affect US firms doing business in Canada?
Are there any restrictions on foreign investments in Canada? Identify and describe two of them.
What should a firm seeking to enter the Canadian market know about marketing practices there? Identify and describe three practices.
How good are franchise opportunities in Canada? Explain.
Why is Mexico doing so well economically? Identify two developments that have been particularly helpful in bringing this about.
What is the purpose of the LAIA? Of what value is the organization to its members?
1. How has Mexico provided the environment to make Jumex into a competitive fruit and nectar producer in foreign markets? 2. What factors mentioned in this case study have contributed to Jumex’s
1. How is GSK’s production organized? 2. Is GSK’s secondary supply-chain structure global, regional, or local? Why? 3. What is GSK’s basic strategy? 4. Why does GSK spread R&D around the
Why do MNE managers need to develop an understanding of changing economic conditions in nontriad regions?
What characteristics do we tend to associate with emerging economies that are important considerations for foreign investors?
Which nontriad regions and countries have achieved the most rapid economic growth in the last 10 to 20 years and what factors have helped their development?
What insights does the Flying Geese model of economic development provide for understanding current and future trade and investment flows? What are its weaknesses as a model?
How did Indian IT, software and services firms evolve beyond their reliance on cheap labor to develop firm-specific advantages and internationalize?
1. How well does Porter diamond framework explain the beginnings of the Indian IT and software services industry? 2. Why has this kind of industry not developed in other parts of the world, where
1. How is the growing provision of alternative sources of health services around the world likely to affect the triad-based providers, public and private? 2. Explain the rise of Bumrungrad
What indicators point to the increasing importance of China and Chinese firms in the global economy? Describe two factors that have helped China’s recent economic growth.
Explain why Chinese firms are investing in Africa.
Do you think Chinese MNEs warrant a new theoretical approach to understanding multinational firms and their reasons for internationalizing?
What makes China an attractive location for inward FDI by MNEs?
Give some examples of the national development policies pursued by the Chinese government. Explain how these affect the options open to foreign firms investing in China.
What makes China an attractive location for foreign R&D activities?
What modes of market entry are open to foreign firms investing in China?
What guidelines must MNEs follow when doing business in China? Identify and briefly describe three specific difficulties for foreign firms breaking into the Chinese market.

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