Chapter 08: What should they do?

General Motors is a multinational company. In most countries in which it operates, General Motors opens facilities that give it total control over manufacturing and other processes. However, in China General Motors must partner with domestic companies due to legal and regulatory constraints. In these cases, GM owns part of the company, while the domestic firm owns the other part. In most countries, GM engages in ____________, but in China it engages in _______________.

direct ownership; joint ventures

Katherine is often surprised when she goes to other countries to learn that people do business so differently. For instance, in meetings Katherine is used to getting straight to the point and addressing any relevant issues. However, she has learned that in many countries businesspeople take the time to first make small talk and ask about the family before finally getting down to business. To Katherine this seems to make the meetings unnecessarily long and wastes valuable time. These cultural differences seem strange to Katherine because she is relying on her

ethical perspectives.

When Amway entered China, it opened up retail locations for the first time. Amway is a direct selling firm. This means that it sells almost exclusively through independent consultants. However, in China restrictions on direct selling required significant modifications in how consumers obtain these products. On the other hand, Amway has been able to sell many of its signature products to the Chinese market with little to no modification. In China, Amway was forced to ______________ the distribution variable and ___________ its product variable.

localize; globalize (Incorrect)

Counterfeit luxury goods are a major problem in some Asian countries. Women that purchase counterfeit bags feel a thrill when they are able to fool others into believing they own a luxury brand. However, the major reason for the deception is that people in those cultures place high value on luxury brands. By showing off the brand, these women are demonstrating that they can afford the best. The emphasis and value placed on status is an example of a(n) _________________.

sociocultural force (Incorrect)

Toyota announced it was ending a partnership with Tesla. A few years earlier, Toyota had partnered with Tesla and agreed to use its lithium-ion battery pack and motor on some of its vehicles. The hope was that the firms could use their combined knowledge in electric vehicle technology to develop better products in this area. Eventually, Toyota began to focus more on hydrogen cell technology, and the partnership dissolved. This partnership between the two firms was most likely a(n)

trading company. (Incorrect)