Question: 1. Is Sports Exports Company a multinational corporation? 2. Why are the agency costs lower for Sports Exports Company than for most MNCs? 3. Does

1. Is Sports Exports Company a multinational corporation?
2. Why are the agency costs lower for Sports Exports Company than for most MNCs?
3. Does Sports Exports Company have any comparative advantage over potential competitors in foreign countries that could produce and sell footballs there?
4. How would Jim Logan decide which foreign markets he would attempt to enter? Should he initially focus on one or many foreign markets?
5. The Sports Exports Company has no immediate plans to conduct direct foreign investment. However, it might consider other less costly methods of establishing its business in foreign markets. What methods might the Sports Exports Company use to increase its presence in foreign markets by working with one or more foreign companies?

MINI CASE

In every chapter of this text, some of the key concepts are illustrated with an application to a small sporting goods firm that conducts international business. These “Small Business Dilemma” features allow students to recognize the dilemmas and possible decisions that firms (such as this sporting goods firm) may face in a global environment. For this chapter, the application is on the development of the sporting goods firm that would conduct international business.

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