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international business
Questions and Answers of
International business
Sustainabilitya. cannot be achieved without dropping our standard of living.b. strives to improve our quality of life but also protect the earth.c. is achieved when a company practices ethical
Which of the following strategies is not designed to help a company recover from an ethical lapse?a. Ensuring whistle-blowers face legal consequencesb. Working to find a leader who will set an
The practice of corporate philanthropya. is only a marketing strategy.b. can build stronger relationships with employees and the community at large.c. states that success can be found by competing
A whistle-blower is a person who is quickly promoted for finding new markets for growth.a) Trueb) False
You just learned about the ethical considerations of business. Consider how these ideas relate to some of the demands business owners face.What additional information would an owner need to create
Moving accounting responsibilities to an outside company is an example ofa. importing.b. exporting.c. outsourcing.d. absolute advantage.
The globalization of markets and the globalization of production means thata. people are no longer in control of their own lives.b. we are all connected by the Web.c. companies can take one product
A trade deficit happens whena. the value of imports is greater than the value of exports.b. the U.S. dollar is strong.c. both are true.d. neither are true.
Political differences like censorship policies or environmental regulations can affect international business deals.a) Trueb) False
You just learned about globalization. Consider how globalization relates to other areas of business.What information would a business need to plan for how globalization of the company impacts
Which of the following is a good example of macroeconomics?a. How a specific company maximizes its production and capacity so it can better compete in its industryb. How an increase in the
There are four dry cleaners in your town. All of them claim to provide the best service. Each shop advertises the unique benefits of its services and prices. This is an example ofa. pure monopoly.b.
Eden Organics gives massages, facials, and organic body treatments. Last summer, another organic spa opened up in town. The supply curve for Eden Organics would shift in which direction?a. To the
Which of the following is a determinant of supply?a. Changes in populationb. Changes in income levelsc. Changes in complementary goodsd. Technology changes
Which of the following tracks the prices of goods that consumers purchase over time?a. GDPb. PPIc. CPId. GNP
A person loses their job and then begins to drive for Lyft while looking for another permanent job.Which type of unemployment does this situation represent?a. Frictionalb. Seasonalc. Cyclicald.
What results when there is an increase in overall prices?a. Recessionb. Deflationc. Peakd. Inflation
Macroeconomics is the study of the behavior of the overall economy.a) Trueb) False
The Federal funds rate is what is charged when banks borrow overnight funds from each other.a) Trueb) False
Cuba is a good example of a market economy.a) Trueb) False
Cocoa bean supplies fell to record lows because of an increase in demand. The reduced supply caused a shortage.a) Trueb) False
To smooth out swings in the business cycle, the government influences the economy through its fiscal and monetary policies. Discuss the monetary and fiscal policies that have been applied in response
Competitiona. forces companies to limit their growth.b. forces companies to improve products and lower prices.c. occurs when one business has control over the price of a product.d. is the product of
Globalization affects businesses, but it also has a direct impact when a persona. uses technology to communicate with other gamers in Japan.b. has opportunities to study or work in countries around
Goods are the intangible products bought and sold by companies.a) Trueb) False
Managing your life is not like managing a business because you do not have financial or privacy issues to address.a) Trueb) False
You can already think of yourself as a business—your life already has many of the same needs to manage. How do you manage your life financially?What are your sources of income? How do you track and
We’ve seen that there are a number of resources needed to start any business.Think about the business needs you will have. You may be feeling that you don’t have the capital, the experience, or
Founded in 1987 in Shenzhen, China, in just 30 years Huawei has grown to become a leading global information and communications technology (ICT) organisation that provides consumers with competitive
Moving operations and functions to overseas locations, known as offshoring, is a well-established restructuring practice, as evidenced by the relocation of many manufacturing activities from
The largest manager of budget-priced hotels in the world is the French company Accor. In 2014 it owned over 3,717 hotels in 90 countries under the brands Sofitel, Pullman, Novotel, Mercure,
French retail giant Carrefour (‘crossroads’ in French) is the number one retailer in Europe and number two in the world. In 2018, Carrefour made approximately 74 per cent of its sales in Europe,
When thinking of Sony one typically thinks of the Walkman and music players, televisions and other home entertainment products including the Playstation; however over recent years the nature of many
Founded in 1961, Group Jumex is the largest producer of juices and fruit nectars in Mexico. As of 2017, the country has a population of approximately 130 million people and a hot climate that
One of the biggest complications in international trade is the ability of domestic producers to lobby their home governments to erect barriers to trade. This varies country by country in terms of the
Which bank is the world’s largest? Prior to the merger of Citicorp and Travelers in 1998, it was the Hongkong and Shanghai Banking Corporation (HSBC). By 2018, HSBC was the world’s seventh
3M is a major MNE with over 55,000 products sold in 200 countries, comprising everything from office supplies to construction and building maintenance to chemicals. In 2017, it employed over 90,000
LVMH is the French-based, world-leading luxury goods group that was founded in 1987 with the merger of Louis Vuitton and Moët Hennessy. Christian Dior, Dom Pérignon, Givenchy and Moët &
It is a complex time to be a big player in the global marketing communications (‘marcomms’) industry. The explosion of digital media means that every marketing idea is scrutinised by a variety of
In the two decades to 2017, China’s share of global merchandise exports almost tripled, rising from 4.7 per cent to 12.8 per cent. However, this trend did not reflect China’s exports of rare
One of the rules of international production strategy is: manufacture the highest-quality product and the world is likely to beat a path to your door. A number of firms help illustrate this rule. One
What are the causes of Brexit and what has it revealed about the politics of economic integration?
What is meant by the term balance of payments?
Define the term strategic planning.
Choose a well-known MNE and describe the kinds of power resources or bargaining chips it could use in FDI negotiations with a country government.
China has become increasingly dominant in international trade over the last 30 years and is revered as the flagship emerging economy. Much of this growth has been based on inward FDI and over the
How have emerging economies liberalised to encourage FDI?
Among industrialised countries, the US market for pharmaceuticals is the least regulated and thus the largest in the world. Not surprisingly, European companies like AstraZeneca, Aventis and
With free trade areas evolving around the globe, many protected industries are now facing unwelcome competition. Free trade agreements generally include a principle of national treatment under which
What are the benefits of privatisation? Why will the trend towards privatisation continue?
The Turkish economy was performing rather well in 2017 as the nation exceeded forecasted levels of growth. For instance, in the third quarter of 2017 GDP levels were 11.1 per cent higher in
China became a net exporter of cars for the first time in 2005, due in part to the large-scale inward investment from non-Chinese car manufacturers, channelled into joint ventures with local firms in
Do you think Katie’s experience would hold for you, that you would learn more about yourself from your international time than you would about others?Katie Emick describes her initial international
1. What obstacles does a foreign-born entrepreneur face in adapting a product to the U.S. market? 2. Ask foreign students you know whether they can think of any products from home that aren’t
1. What do you think might be the greatest strengths and weaknesses of working in a virtual organization like this? 2. Would you enjoy working in a virtual organization like Accenture? Why or
1. Which approach to measuring development do you think would be most useful for international managers to follow in assessing a potential market’s level of development? 2. Do you agree
1. Under what conditions might an index based on the pricing of Big Mac sandwiches be most useful in understanding whether a particular currency is overvalued or undervalued? When might such an index
Would you consider plagiarism an intellectual property right violation? Explain your reasoning.
1. Can a company gain advantages besides profit by offshoring? If so, what are they? If not, why not? 2. Does a company face ethical considerations in deciding whether to offshore activities?
1. Do you think the base of the pyramid represents an attractive and appropriate market for multinational corporations? Why or why not? For which products or services might this market be most
Candy Crush Saga is a simple game played by over 75 million Facebook users, but only about 16 percent of its fan base is in the United States. What elements of Candy Crush Saga do you think appeal to
The manager of the international department of the Cape Cod Five Bank learns that the ship on which a local exporter shipped Wellfleet oysters in saltwater tanks to Spain has sunk in high seas. She
1. What do you think of the nature of the international work that Cignetti was involved in? Would this sort of activity be interesting and fulfilling to you? Why or why not? 2. What do you think
What are the implications for international companies of trends toward aging populations in many developed countries and rapid urbanization in many emerging nations? What changes are ICs likely to
1. Is Rapaille’s code system a short-cut code to understanding the complexities in culture and a way to make market research easier? Or is it a superficial hoax sold by a charlatan? 2. As a
Describe global teams and comment on what makes them more challenging than teams with members from a single nation.
What implications might the rural-to-urban shift in developing countries have for international companies?
Comment on the assertion that the business of business is to generate profit and that to pay attentionto sustainability is to be taken off strategy by a passing fad.
1. Do you think the U. S. public’s response to the disaster would have been different had the company been more localized, for example, with a U.S. PR firm and U.S. executives?2. Do you think that
What differences might you expect to see in the approach used for global manufacturing and supply chain management for a product that has stable demand and limited change in its basic design, versus
How might global logistics practices be impacted by developments such as 3D printing technology or a sustained rise in the global price of oil?
How might an international company’s decision to adopt approaches such as just-in-time manufacturing systems or Six Sigma within its international network of subsidiaries result in a decline in its
In what ways may the emergence of global electronic procurement be a potential benefit for small and midsized companies, and in what ways might global electronic procurement pose a threat to these
What concerns arise as a firm purchases an increasing portion of its materials from outside firms, especially those located in foreign countries, rather than producing these materials itself? How
1. Does the use of a multination client management team approach create value for companies and workers in both a developing country like India and a developed country such as the United States? Why
1. Identify specific concepts in the case found in this module, and discuss their relevance to the problems facing the company.2. Considering all of the problems incurred in China and the immense
1. How does Zara’s approach yield advantage over companies using more traditional approaches to logistics and supply chain management? What might make it difficult for competitors to imitate
Exporting contributes about 13 percent to the U.S. GDP, which is low compared to other developed nations. Why might this be the case?
“Export is so complicated it’s not worth the extra hassle.” How might you respond to this statement made by your company’s director of marketing?
How might the use of a free trade zone impact the pricing of an imported good composed of French and domestic components that was assembled in the FTZ?
1. Can you think of other possible businesses that could use this import-add value-re-export strategy??2. Are there ways Mark could vertically integrate to capture more of the value his business adds
Why is the OECD, known as “the rich man’s club,” important to countries beyond the cluster of rich ones?
Mercosur’s main trading partner is the EU rather than the United States. Why might this be the case?
Choose a specific informal cognitive institution,discuss its characteristics, and comment on why they could be significant to international business managers.
1. Should businesses participate in such efforts as the Millennium Project, or should their focus be on the bottom line and returning dividends to shareholders?2. How might a local business include
Which organizations discussed in this module would you look to for help in developing a list of investment alternatives and of criteria for the ownership recommendation?This minicase explores the
When accounting systems are fully harmonized and convergence is achieved, will the company’s functional currency matter?
Could transaction exposure be avoided if the revenues generated by foreign sales were transferred to the home company’s currency at the end of every business day?
U.S. corporations use three major tactics to keep their tax bills low: they avoid repatriating their foreign earnings; they are careful about how they organize their foreign operations; and they have
One of the characteristics of centralized structures is that they are slow and reduce innovation. Given that a globalized business needs increasingly quick responses, why would an MNC set up a
How might adopting triple-bottom-line accounting influence the competitiveness of U.S. firms in foreign markets?
Does the process of convergence of accounting standards present any benefits to U.S. firms that already operate internationally?
1. What advice does Goldfinger offer?2. Do you admire his leaving his KPMG position to take up a Kiva fellowship or does this seem foolhardy to you?Brian Goldfinger describes his change of major into
1. Is profiting from lending to the poor an ethical business model?2. Is for-profit microlending a way to reach more of the poor more effectively, or a mistaken development?The growing trend of
How could you cover this risk?This minicase explores a contract made in renminbi and how to hedge it.
The only difference between accounting in the domestic arena and accounting in the international one is that international transactions may be in foreign currencies that have to be translated into
1. How is Prokhorov’s transfer of the basketball team the Brooklyn Nets an example of hedging the risk of increased sanctions?2. Are there costs associated with the Russian response to the U.S. and
Suppose you are the CEO of an American multinational. On your staff and in the U.S. operating divisions of your company are several bright, able, dedicated female executives. They are also ambitious,
Why are expatriate employees frequently paid more than their colleagues at equivalent job levels in the home office? Do you think this premium is justified?
International companies often encounter performance problems with expatriation, where problems arise due to issues associated with the expatriate’s family. What advice would you provide to an IC
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