Assignment: Chapter $08$: Global Management

Phase

Order

Strategic alliances

Exporting

Wholly owned affiliates

Cooperative contracts

Management at Work

Fung Kim Ping is a toymaker wro lives in Guandong, China. She makes soft, squishy light$-$up ducks that delight her clients, including visitors from other countries. One of Kim Ping's best clients is Abdel Errihani, a businessman who owns several large toy stores in Morocco. Abdel is trying to persuade Kim Ping to develop an international business, starting in Marrakesh.

Kim Ping is considering several strategies for going global, and she asks you for help in evaluating the pros and cons of each approach.

First, Kim Ping wants to know how firms normally transition from being domestic to being global.

Suppose Kim Ping and Abdel decide to set up a joint venture. Working together, the two companies will build a new, independent manufacturing facility in Morocco. What problems might Kim Ping and Abdel encounter with their joint venture? Check all that apply.

Kim Ping will face increased tariffs and trade restrictions with the new joint venture.

Because Kim Ping and Abdel must share their profits from the new venture, the profit available for each of them may be less.

Kim Ping and Abdel may find themselves engaged in a power struggle as they determine how to run the new business.

Abdel will face increased tariffs and trade restrictions with the new joint venture.