Chapter 4

Which country is becoming a major player in shifting the international landscape due to the rapidly growing consumer market?

Brazil

Foreign companies have invested more in businesses located in __________ than they spent anywhere else in the world.

China

Which is an example of a legal-political factor in the international environment?

Consumer protection

Managers trying to implement teams have had trouble in areas where cultural values support low power distance and a high tolerance for uncertainty, such as Mexico.

False

The basic management functions are completely different for a company operating domestically rather than internationally.

False

The key factors of the international environment are the economic, the sociocultural, and the corporate environments.

False

An education company in the United States hires a vendor in India to create educational material for less than 50% of the cost of hiring a company in the United States. Which is this an example of?

Global outsourcing

Vladimir is a manager at an automotive plant in the United States. His company has realized it needs to think globally since the whole world is a source of business and has struck a deal with an automotive supplier in Brazil to buy 15% of their parts at a discounted rate as this will better serve the company's needs. His company has also determined that they can streamline their processes if they outsource some work. Relate what Vladimir's company is demonstrating.

Globalization

What is globalization?

Globalization refers to the extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries.

Raoul owns a dry goods store in Germany and is part of the European Union (EU) that uses the euro as currency. His business had steadily grown due in large part to the ability to easily export his products to other countries until the global recession began. Everything that he exports is now heavily taxed, which has caused him to have to lay off a number of employees. In the event that the EU returns to using national currencies, what are some things that Raoul could do to prepare?

He can develop long-term orientation to ensure he meets his current obligations.He can consider how to expand his company and how he would pay employees.

Lenovo, the world's largest PC maker, is redefining the meaning of a Chinese company. They are blending the best of Eastern philosophy and culture with the best of Western business and management thinking. Lenovo's top managers now come from 14 different nations. Analyze how Shaheed's software company in India can reflect the same refinements that Lenovo is making in the changing international landscape.

He can employ people from non-Indian cultures to bring different perspectives to his company.

Benjamin has accepted a management position overseas in Japan. He is excited about this opportunity and has been learning about the Japanese culture and the complexities of how his current environment will change. Recently he has returned from a trip to Japan where he met several new people whom he now considers friends. Distinguish how Benjamin is using the global mindset.

He is using the cognitive and social dimensions.

NAFTA is a trade agreement between Canada, the United States, and Mexico. Which of the following is not one of the intended outcomes of this agreement?

Higher unemployment in the United States

Oliver's doctor in Nevada has decided to run several tests on him. The test results are then sent to India to be read by a doctor there because it costs less to analyze them in India. Isabelle has decided to go into business for herself and has been able to purchase a complete package of materials and services including managerial advice. Differentiate the market entry strategies that Oliver and Isabelle are both benefiting from.

Isabelle is using direct investing, and Oliver is using franchising.Isabelle is using franchising, and Oliver is using offshoring.

A nation's __________ includes the shared knowledge, beliefs, and values, as well as the common modes of behavior and ways of thinking among members of a society.

culture

Countries whose social values reflect low power distance:

expect equality in power.

Global Mindset : cognitive dimension

knowing about the global environment and global business, mentally understanding how cultures differ, and having the ability to interpret complex global changes

Sodima is a French cooperative that owns the name, the trade secrets, and the patents on Yoplait yogurt. General Mills pays Sodima for the rights to sell Yoplait yogurt in the United States. This is an example of:

licensing.

In a __________, people use communication primarily to exchange facts and information.

low-context culture

Developing a global mindset requires managers to possess all these traits except:

partial in their point of view.

When a U.S. company risks the loss of its assets in a foreign country due to actions by the host government in that country, this is called:

political risk.

Global Mindset: psychological dimension

the emotional and affective aspect, This includes a liking for diverse ways of thinking and acting, a willingness to take risks, and the energy and self-confidence to deal with the unpredictable and uncertain

What type of business arrangement can be the easiest and most cost-effective way for a company to enter the international arena?

Exporting

A global mindset is a true desire to go global along with new techniques and skills that assist managers to succeed in global affairs.

False

Jiyaing is an HR manager at a research firm in China, and her company has decided to open a branch in the United States. Jiyaing has been assigned to assist the HR department in the new branch as they become familiar with the company's policies. Jiyaing would like to spend a little time getting acquainted with the people in the new branch while she's working with them, but they mainly want information that pertains to the company. Identify what type of cultural intelligence Jiyaing needs to cultivate.

Jiyaing needs to develop low-context culture.

Which is not an example of political instability that can effect international company operations?

Loss of earning power

Which is not a goal of the regional trading alliances and international trade agreements?

Raising tariffs

global mindset

The ability to appreciate and influence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, and psychological characteristics.

Why is it impossible for managers to isolate themselves from international forces?

The events, trends, and ideas that influence organizations in one country influence them in other countries as well.

Globalization

The extent to which trade and investments, information, ideas, and political cooperation flow between countries.

Bangladesh native Iqbal Quadir realized that connectivity equals productivity. He also knew his impoverished homeland was one of the least connected places on Earth. He collaborated with a fellow countryman to create Village Phone, which allows entrepreneurs (mostly women) to obtain microloans to purchase cell phones. This venture has resulted in thousands of new small businesses and improved communication. Decide what Iqbal is demonstrating with the invention of Village Phone.

The infrastructure is making economic development possible.

Which is not true regarding a multinational corporation?

They are typically controlled by several management specialists.

Nestlé SA gets most of its sales from outside its "home" country of Switzerland. Its 280,000 employees are spread all over the world and more than half of the company's managers are non-Swiss. Nestlé has hundreds of brands and production facilities or other operations in almost every country in the world. Decide how Raquel's food distribution company, which has not yet branched out internationally, can follow Nestlé's example.

They can become a geocentric company and favor no specific country.

Global Mindset: social dimension

concerns the ability to behave in ways that build trusting relationships with people who are different from oneself.

Brazil has had slow economic growth over the last few years, but is still one of the fastest-growing emerging economies in the world.

True

One result of globalization is that countries, businesses, and people become more interdependent.

True

The bottom of the pyramid (BOP) concept proposes that corporations, by selling to the world's poorest people, can alleviate poverty and other social ills as well as make significant profits.

True

The North American Free Trade Agreement (or NAFTA) includes the following nations:

United States, Canada, and Mexico.

Which activity would not be "key" to developing a global mindset?

Watching foreign affairs on the news

A primary concern that Americans have about globalization is that:

they dislike the number of domestic jobs that have been offshored to other countries.