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business
introduction global business
Global Business Today 12th Edition Charles Hill - Solutions
1.3. Red Bull mass markets its products in a unique way.To support the company’s international business strategy, Red Bull hosts a number of extreme sporting events. Personally, how reachable are you as a customer via these extreme sporting events, or does it even matter? Some marketers believe
1.2. Worldwide, Red Bull has the highest market share of all energy drinks, with more than 6 billion cans sold annually (that’s almost one can for every person worldwide). So, either you drink Red Bull, or your friend does! Does the sheer number of Red Bull cans sold—basically its
1.1. As an Austrian–Thai company, Red Bull has done a remarkable job of positioning itself internationally by coming across as a local company in every country where Red Bull is sold. Would you be more or less likely to buy Red Bull knowing the brand is Austrian but with a strong Thai influence?
1.6. How might the rise of trade barriers, or a serious dislocating event such as war or the emergence of a multiyear global pandemic, change the strategy of companies like Apple or Intel, which have historically pursued a global standardization strategy?
1.5. What do you see as the main organizational problems that are likely to be associated with the implementation of a transnational strategy?
1.4. Reread the Management Focus, “AB InBev, Beer Globally, and Creating Value,” and then answer the following questions:a. With more than 200 brands and strong coverage internationally of the different brands, strategically AB InBev is a unique and highly organized global company. Do they have
1.LO 12-5 Explain the pros and cons of using strategic alliances to support international strategies.
1.LO 12-4 Identify the different international strategies for competing and their pros and cons.
1.LO 12-3 Understand how pressures for cost reductions and local responsiveness influence strategic choice.
1.LO 12-2 Recognize how firms can increase revenue and profit by expanding globally.
1.LO 12-1 Explain the concept of international business strategy.
1.6. Why do rescue packages of this nature matter to an international business doing business in the country, or considering doing so?
1.5. The Chinese Belt and Road initiative has resulted in Pakistan being heavily indebted to China. Does China have an obligation to help Pakistan here?
1.4. Given that Pakistan has already had 12 prior IMF bailouts, what confidence do you have that this bailout will produce the desired results? Should the IMF continue to give funds to countries like Pakistan that seem unable to solve their structural economic problems?
1.3. The U.S. dollar exchange rate fell from $1 = 142 rupees to $1 = 163 rupees in the immediate aftermath of the IMF bailout deal being announced. What is the likely impact of this currency devaluation of the Pakistani economy?
1.2. What are the conditions attached to the current IMF bailout designed to achieve? If implemented correctly, do you think they will improve Pakistan’s finances?
1.1. Pakistan seems to have persistent economic problems.Why do you think this is the case?
1.LO11-6 Explain the implications of the global monetary system for management practice.
1.LO11-5 Understand the debate surrounding the role of the IMF in the management of financial crises.
1.LO11-4 Identify exchange rate regimes used in the world today and why countries adopt different exchange rate regimes.
1.LO11-3 Compare and contrast the differences between a fixed and a floating exchange rate system.
1.LO11-2 Explain the role played by the World Bank and the IMF in the international monetary system.
1.LO11-1 Describe the historical development of the modern global monetary system.
1.4. Should it hedge all of its foreign exchange transactions, or just a subset?
1.3. Should 3M hedge against adverse movements on foreign exchange rates? How should it do this?
1.2. If the dollar depreciates in value against most other countries over the next year, what will the impact be on 3M?
1.1. If the dollar appreciates in value against most other countries over the next year, what will the impact of this be on 3M?
1.2. Sometimes analysts use the price of specific products in different locations to compare currency valuation and purchasing power. For example, The Economist’s Big Mac Index compares the purchasing power parity of many countries based on the price of a Big Mac.Using Google, locate the latest
1.3. Reread the Management Focus “Embraer and the Gyrations of the Brazilian Real,” and then answer the following questions:a. What does the recent economic history of Brazil tell you about the relationship between price inflation and exchange rates? What other factors might determine exchange
1.LO 10-6 Compare and contrast the differences among translation, transaction, and economic exposure, and explain the implications for management practice.
1.LO 10-5 Identify the merits of different approaches toward exchange rate forecasting.
1.LO 10-4 Understand the different theories explaining how currency exchange rates are determined and their relative merits.
1.LO 10-3 Recognize the role that forward exchange rates play in insuring against foreign exchange risk.
1.LO 10-2 Understand what is meant by spot exchange rates.
1.LO 10-1 Describe the functions of the foreign exchange market.
4. For Brexit to be a net positive for the British economy in the long run, what has to happen?
3. There is evidence that the uncertainty surrounding the precise nature of the post-Brexit trade deal between Britain and the EU has lowered economic growth rates in Britain. Why do you think uncertainty over trade has this effect on growth?
2. Why did a majority of people in Britain apparently feel that it was in the best interest of the nation to exit the EU?
1. What have been the benefits of the EU to the British economy? What do you think have been the costs?
1. NAFTA produced significant net benefits for the Canadian, Mexican, and U.S. economies. Discuss.
LO9-5 Understand the implications for management practice that are inherent in regional economic integration agreements
LO9-1 Describe the different levels of regional economic integration.
4. What drove Starbucks to shift from a joint venture strategy in China to run the operation through a wholly owned subsidiary? What are the benefits here?What are the potential risks and costs? Do you think this was the correct decision?
3. Why do you think Starbucks decided to enter the Japanese market via a joint venture with a Japanese company? What lessons can be drawn from this?
2. What drove Starbucks to start expanding internationally? Is this strategy in the best interests of its company’s shareholders?
1. Where did the original idea for the Starbucks’ format come from? What lessons for international business can be learnt from this?
LO8-6 Identify the implications for managers of the theory and government policies associated with FDI.
LO8-5 Explain the range of policy instruments that governments use to influence FDI.
LO8-4 Describe the benefits and costs of FDI to home and host countries.
LO8-3 Understand how political ideology shapes a government’s attitudes toward FDI.
LO8-2 Explain the different theories of FDI.
LO8-1 Recognize current trends regarding foreign direct investment (FDI) in the world economy.
3. What was the motivation of the Trump administration in placing tariffs on imports of foreign steel in 2017?Who benefits from these tariffs? Who loses? In your estimations, are the tariffs and net positive or negative for the American economy?
2. Who pays the tariffs on imports on foreign steel into the United States? How does the payee deal with the additional costs that the tariffs represent?
1. The steel industry has a long history of asking for, and getting, tariff protection from foreign competitors.Why do you think this is the case?
LO7-5 Explain the implications for managers of developments in the world trading system.
LO7-3 Summarize and explain the arguments against strategic trade policy.
LO7-1 Identify the policy instruments used by governments to influence international trade flows.
4. Drawing on the case history of Ghana and South Korea, what advice on trade policy would you give a developing nation? What resistance to your recommendations would you expect?
3. What does the relative experience of Ghana and South Korea teach you about the importance of international trade policies?
2. What was South Korea trying to achieve with the trade policies that it implemented from the late 1950s onward? Did these policies work? Why?
1. What was Ghana trying to achieve with its post-independence policies toward international trade? Why did these policies not have the intended effect?
2. Food is an integral part of understanding different countries, cultures, and lifestyles. You run a chain of high-end premium restaurants in the United States, and you are looking for unique Australian wines you can import. However, you must first identify which Australian suppliers can provide
1. The World Trade Organization International Trade Statistics is an annual report that provides comprehensive, comparable, and updated statistics on trade in merchandise and commercial services.The report is an assessment of world trade flows by country, region, and main product or service
6. Is there a difference between the transference of high-paying white-collar jobs, such as computer programming and accounting, to developing nations, and low-paying blue-collar jobs? If so, what is the difference, and should government do anything to stop the flow of white-collar jobs out of the
5. Reread the Country Focus, “Is China Manipulating Its Currency in Pursuit of a Neo-Mercantilist Policy?”a. Do you think China is pursuing a currency policy that can be characterized as neo-mercantilist?b. What should the United States, and other countries, do about this?
4. What are the potential costs of adopting a free trade regime? Do you think governments should do anything to reduce these costs? Why?
2. Is free trade fair? Discuss.
LO6-5 Understand the important implications that international trade theory holds for management practice
LO6-4 Explain the arguments of those who maintain that government can play a proactive role in promoting national competitive advantage in certain industries.
LO6-3 Recognize why many economists believe that unrestricted free trade between nations will raise the economic welfare of countries that participate in a free trade system.
LO6-2 Summarize the different theories explaining trade flows between nations.
LO6-1 Understand why nations trade with each other.
5. Do you think that Microsoft should decline to do business with the likes of ExxonMobil unless they also adopt ambitious sustainability targets, as some critics have suggested?
4. Apply John Rawls’ concept of the veil of ignorance to Microsoft’s decision. What conclusion do you reach about Microsoft’s decision?
3. Viewed through the lens of “rights theories,” is Microsoft’s decision to go carbon negative by 2030 ethical?
2. What would the Friedman doctrine suggest about Microsoft’s decision to go carbon negative by 2030?
1. Is Microsoft’s decision to go carbon negative by 2030 in the best interests of Microsoft’s stockholders? What about other stakeholders such as the company’s customers, employees, suppliers, and the communities in which it does business?
2. The use of bribery in the business setting is an important ethical dilemma many companies face both domestically and abroad. The Bribe Payers Index is a study published every three years to assess the likelihood of firms from leading economies to win business overseas by offering bribes. It also
1. Promoting respect for universal human rights is a central dimension of many countries’ foreign policy.As history has shown, human rights abuses are an important concern worldwide. Some countries are more ready to work with other governments and civil society organizations to prevent abuses of
7. Can a company be good at corporate social responsibility but not be sustainability oriented? Is it possible to focus on sustainability but not corporate social responsibility? Based on reading the 360° Vie w: Managerial Implications section, discuss how much CSR and sustainability are related
6. Milton Friedman stated in his famous article in The New York Times in 1970 that “the social responsibility of business is to increase profits.”56 Do you agree? If not, do you prefer that multinational corporations adopt a focus on corporate social responsibility or sustainability practices?
5. A manager from a developing country is overseeing a multinational’s operations in a country where drug trafficking and lawlessness are rife. One day, a representative of a local “big man” approaches the manager and asks for a “donation” to help the big man provide housing for the poor.
4. Do you think facilitating payments (speed payments)should be ethical? Does it matter in which country, or part of the world, such payments are made?
2. Drawing on John Rawls’s concept of the veil of ignorance, develop an ethical code that will (a) guide the decisions of a large oil multinational toward environmental protection and (b) influence the policies of a clothing company in their potential decision of outsourcing their manufacturing
LO 5-5 Explain how global managers can incorporate ethical considerations into their decision making in general, as well as corporate social responsibility and sustainability initiatives.
LO 5-4 Describe the different philosophical approaches to business ethics that apply globally.
LO 5-3 Identify the causes of unethical behavior by managers as they relate to business, corporate social responsibility, or sustainability.
LO 5-2 Recognize an ethical, corporate social responsibility, and/or sustainability dilemma.
LO 5-1 Understand the ethical, corporate social responsibility, and sustainability issues faced by international businesses.
4. Since 2017, Crown Prince Mohammed bin Salman, the effective ruler of the country, has introduced a series of changes aiming at modernizing the country.These include relaxing many of the traditional norms based on conservative Islam. Why do you think he is doing this? What are the risks here for
3. If you were in a position to advise a Western company that was considering doing business in Saudi Arabia for the first time, what would your advice be?
2. What kinds of misunderstanding are likely to arise between an American company and a Saudi enterprise, neither of which has experience dealing with the other?
1. What forces shaped modern Saudi culture? How similar or different are these forces from those that shaped the culture of Western nations?
2. Typically, cultural factors drive the differences in business etiquette encountered during international business travel. In fact, Middle Eastern cultures exhibit significant differences in business etiquette when compared to Western cultures. Prior to leaving for your first business trip to the
1. You are preparing for a business trip to Brazil, where you will need to interact extensively with local professionals. As a result, you want to collect information about the local culture and business practices prior to your departure. A colleague from Latin America recommends that you visit the
5. Reread the Management Focus, “China and Its Guanx i,” and answer the following questions:a. Why do you think it is so important to cultivate guanxi and guanxiwang in China?b. What does the experience of DMG tell us about the way things work in China? What would likely happen to a business
4. Reread the Country Focus, “Turkey, Its Religion, and Politics.” Then answer the following questions:a. Can you see anything in the values and norms of Islam that is hostile to business? Explain.b. What does the experience of the region around Kayseri teach about the relationship between
3. Choose two countries that appear to be culturally diverse (e.g., Sweden and Colombia). Compare the cultures of those countries, and then indicate how cultural differences influence (a) the costs of doing business in each country, (b) the likely future economic development of each country, and
2. Do you think that business practices in an Islamic country are likely to differ from business practices in a Christian country? If so, how? If not, why?
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