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business
introduction global business

Global Business Today 11th Edition Charles Hill - Solutions

ON ETHICS: As a US government official, what would be your recommendations to incentivize pharmaceutical firms to develop an Ebola vaccine?
ON ETHICS: You are a shareholder of a pharmaceutical firm that announced its new investment to develop an Ebola vaccine and that, as a result, your dividend would be reduced. Would you support or not
ON ETHICS: Dr. Margaret Chan, Director-General of the WHO, criticized the pharmaceutical industry for being “profit driven”and for failing to invest in the development of a vaccine or cure for
In the competition for the “last mile” delivery in urban China, why was Yihaodian so outstanding, and Walmart was lackluster?
What are the most impressive resources and capabilities in marketing and supply chain management that Yihaodian possesses to attract Walmart?
What does it take to run a successful e-commerce business in China, in the face of strong competitors such as Alibaba and JD.com?
Should Wang accept or decline this opportunity? Why?
Will Lily and the children be happy about this move? Why?
What questions should Wang ask the people at headquarters in Chicago? Please help him prepare a list.
If you were a government official in the MNE’s home country, what can you do to discourage such moves of multinational HQ out of the country?
ON ETHICS: If you were a CEO or a business unit head, under what conditions would you consider moving HQ?
What are the drawbacks and benefits associated with moving business unit HQ and corporate HQ to another country?
What are some of the do’s and don’ts that can be learned from this case?
Prior to their merger in 1998, Daimler and Chrysler had not collaborated in any alliance relationship. This probably contributed to the eventual failure of DaimlerChrsyler. After Fiat made a
From a resource-based view, what does Fiat have in turning around a struggling Chrysler that Daimler did not seem to have?
Why does Thai Union use more acquisitions lately?
How many foreign market entry modes does Thai Union use?What are their advantages and disadvantages?
What are some of the unique resources and capabilities that Thai Union has?
Other than Thai Union, have you heard any firm based in Thailand that has become one of the world’s largest (in any industry)?
Having studied this case, how would you respond to a friend’s comment: “Recent news about the boom in bankruptcies is so depressing”?
Why can bankruptcy laws become exit barriers for an entrepreneurial firm? Entry barriers?
What are the pros and cons for entrepreneur-friendly bankruptcy laws?
Pick a firm from your state or country that is active in at least two (preferably three) member countries via trade and investment. How does it prepare for the scenario that NAFTA benefits are
ON ETHICS: Pick your role as (1) a consumer, (2) a manufacturing worker, or (3) a banker in one member country. What has NAFTA done to help or hurt you and your community?
Because the three NAFTA member countries had been trading for ages before NAFTA, what are the benefits of an FTA such as NAFTA?
What would you do if you were Danilo? What would you propose if you were Carlo?
Which strategic response alternatives to its foreign exchange challenges should Bellini consider?
How do you evaluate Bellini do Brasil’s situation from the resource-based and institution-based views? How may resources and institutions enable or hinder Danilo and Carlo to turn around the
India is a tantalizing market with huge potential and with onerous restrictions. As an executive at Walmart, Tesco, or IKEA whose domestic growth at home is sluggish, how would you approach this
What are the possible drawbacks of FDI in this industry?
What are the possible benefits of FDI in the Indian retail industry?
ON ETHICS: If you were appointed to be head of the new National Trade Council, how would you advise the president regarding the China trade policy?
ON ETHICS: Prior to studying this case, how often have you heard about the benefits outlined in Question 1? How often have you heard about how Chinese imports “destroy”US jobs? What are the
How are the US economy, US firms, and US consumers like you hurt by trade with China?
How do the US economy, US firms, and US consumers like you benefit from trade with China?
Sometimes the IPO of widely successful firms flops—Facebook’s disappointing IPO comes to mind. Does Alibaba deserve to be one of the world’s most valuable companies?
Why has Alibaba become globally famous by focusing on its domestic market?
What are the characteristics of Alibaba’s resources and capabilities that are valuable, unique, hard-to-imitate, and organizationally embedded?
ON ETHICS: If you were a judge in the home country of any of these firms named, how would you proceed with the legal dispute (assuming MIPI can eventually represent the tribe and press legal charges)?
ON ETHICS: As CEO of one of the firms mentioned, how are you going to respond to the criticism that your firm is“ripping off,” or “stealing,” from the Maasai?
ON ETHICS: Assuming you can afford (and are interested in)some of the “Maasai” products, would you like to pay more for these products if royalties are paid to the Maasai? If so, how much more?
ON ETHICS: If you were a Carlsberg board member, would you vote “yes” or “no” for a new project to acquire a local brewery in Russia?
Despite the risk, why do foreign multinationals such as Carlsberg eager to invest in Russia?
Why is investment in Russia considered politically risky?
ON ETHICS: From an institution-based view, what should firms do to better prepare for the two scenarios? (Hint: For example, if they believe in “continued globalization,” they may be more
From a resource-based view, what should firms do to better prepare for the two scenarios?
Which of the two scenarios is more plausible for the global economy in 2050? Why? How does that affect you as a consumer, as a professional, and as a citizen of your country?
5. Sodexo’s strategy is to decentralize authority to develop and fine-tune programs and implement them to managers in each country. What are the benefits of this approach? What are the potential
4. Evaluate Sodexo’s diversity policy. Is the company doing the right thing? Are the right policies in place? Are there other things the company might do?
3. How does Sodexo implement its policy of increasing the diversity of its global workforce?
2. What barriers do companies like Sodexo face when trying to increase workforce diversity in their global operations?
1. How might building a more diverse global workforce help Sodexo to achieve high performance?
6. Why is diversity good for an international business? What actions can a company take to foster greater diversity?
5. Reread the Management Focus “McDonald’s Global Compensation Practices.” How does McDonald’s approach help the company take into account local differences when reviewing the performance of
16. Organized labor has tried to counter the bargaining power of
15. A principal concern of organized labor is that the multinational can counter union bargaining power with threats to move production to another country.
14. A key issue in international labor relations is the degree to which organized labor can limit the choices available to an international business. A firm’s ability to pursue a transnational or
13. Building a globally diverse workforce can help a company to improve its financial performance.
3. Proponents of the customer satisfaction–stock market relationship make a simple, intuitive argument that is highly relevant to both customers and investors: Companies that do better by their
2. Jeffrey P. Bezos, founder and chief executive officer of Amazon.com, Inc., says, “One thing I love about customers is that they are divinely discontent. Their expectations are never
1. Customer satisfaction is a “soft measure” of what customers think of a product or service. We already know that people from different cultures have a tendency to answer surveys and these
3. The large-scale product selection that can be found on the Alibaba platforms has resulted in some 15 billion products being sold annually and 15 million packages being shipped daily (compared with
2. Each year, Alibaba handles more than 80 percent of China’s ecommerce business. The company now operates in 190 countries (only 196 countries and 61 territories exist in the world).Moving
1. According to Alibaba’s promotional efforts and strategic initiatives, Alibaba is on a path to realizing its vision of facilitating $1 trillion in product sales annually as it also pursues a goal
4. Reread the Management Focus “IKEA Production in China,” and then answer the following questions:a. What are the benefits to IKEA of shifting so much of its global production to China?b. What
14. Global supply chain coordination refers to shared decision-making opportunities and operational collaboration of key global supply chain activities.
13. Information technology, particularly Internet-based electronic data interchange, plays a major role in materials management. EDI facilitates the tracking of inputs, allows the firm to optimize
12. Just-in-time systems generate major cost savings by reducing warehousing and inventory holding costs and by reducing the need to write off excess inventory. In addition, JIT systems help the firm
11. Managing a supply chain involves orchestrating effective just-in-time inventory systems, using information technology, coordination among functions and entities in the chain, and developing
10. Purchasing represents the part of the supply chain that involves worldwide buying of raw material, component parts, and products used in manufacturing of the company’s products and services.
9. Logistics is the part of the supply chain that plans, implements, and controls the effective flows and inventory of raw material, component parts, and products used in manufacturing. The core
8. The core global supply chain functions are logistics, purchasing(sourcing), production (and operations management), and marketing channels.
7. An essential issue in many international businesses is determining which component parts should be manufactured in-house and which should be outsourced to independent suppliers. Both making and
6. Foreign factories can improve their capabilities over time, and this can be of immense strategic benefit to the firm. Managers need to view foreign factories as potential centers of excellence and
5. Location strategies either concentrate or decentralize manufacturing.The choice should be made in light of country, technological, and production factors. All location decisions involve trade-offs.
4. Production factors include product features, locating production facilities, and strategic roles for production facilities.
3. Technological factors include the fixed costs of setting up production facilities, the minimum efficient scale of production, and the availability of flexible manufacturing technologies that allow
2. Country factors include the influence of factor costs, political economy, and national culture on production costs, along with the presence of location externalities.
1. The choice of an optimal production location must consider country factors, technological factors, and production factors.
4. Tata Motors is primarily targeting emerging countries (e.g., Africa, Asia Pacific, Middle Eastern, and Latin America) for its future exporting growth. Is this a viable and logical exporting
3. The Volvo Group is a manufacturer of trucks, buses, and construction equipment, which is owned by Swedish interests. Volvo Car Corporation or Volvo Cars, on the other hand, is owned by the
2. Jaguar Land Rover Automotive PLC is the holding company of Jaguar Land Rover Limited, a British automotive company which has its headquarters in the United Kingdom. It is also subsidiary of Indian
1. Tata Motors is an Indian multinational automotive company headquartered in Mumbai and a core member of the very successful Tata Group. India is a potentially enormous market, and Tata Motors is
2. You are the assistant to the CEO of a small technology firm that manufactures quality, premium-priced, stylish clothing. The CEO has decided to see what the opportunities are for exporting and has
1. A firm based in California wants to export a shipload of finished lumber to the Philippines. The would-be importer cannot get sufficient credit from domestic sources to pay for the shipment but
14. The main disadvantage of countertrade is that the firm may receive unusable or poor-quality goods that cannot be disposed of profitably
13. The main attraction of countertrade is that it gives a firm a way to finance an export deal when other means are not available. A firm that insists on being paid in hard currency may be at a
12. Countertrade includes a range of barter-like agreements. It is primarily used when a firm exports to a country whose currency is not freely convertible and may lack the foreign exchange reserves
11. U.S. exporters can draw on two types of government-backed assistance to help finance their exports: loans from the Export-Import Bank and export credit insurance from the Foreign Credit Insurance
10. A bill of lading is issued to the exporter by the common carrier transporting the merchandise. It serves as a receipt, a contract, and a document of title.
9. Drafts are either sight drafts or time drafts. Time drafts are negotiable instruments.
8. A draft is an instrument normally used in international commerce to effect payment. It is an order written by an exporter instructing an importer or an importer’s agent to pay a specified amount
7. A letter of credit is issued by a bank at the request of an importer. It states that the bank promises to pay a beneficiary, normally the exporter, on presentation of documents specified in the
6. The problems arising from lack of trust between exporters and importers can be solved by using a third party that is trusted by both, normally a reputable bank.
5. Firms engaged in international trade must do business with people they cannot trust and people who may be difficult to track down if they default on an obligation. Due to the lack of trust, each
4. Many of the pitfalls associated with exporting can be avoided if a company hires an experienced export service provider (e.g., export management company) and if it adopts the appropriate export
3. The way to overcome ignorance is to gather information. In the United States, a number of institutions, the most important of which is the U.S.Department of Commerce, can help firms gather
2. Neophyte exporters often become discouraged or frustrated with the exporting process because they encounter many problems, delays, and pitfalls.
1. One big impediment to exporting is ignorance of foreign market opportunities.
4. Cutco’s product line includes more than 100 choices under the Cutco name alone. The extended line includes kitchen utensils, gadgets and flatware, sporting and pocket knives, and garden tools.

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