Chapter 03 Assignment: Managing in a Global Environment

Which of the following are examples of companies operating in a globalized world? Check all that apply.

-Austria's Red Bull sponsors extreme sports events across Europe, North and South America, and Asia, making its drinks feel like a local presence while the company maintains a European look to its packaging. -San Francisco-based Airbnb used #OneLessStranger to spark an international social media campaign in which it asked its community of customers to perform random acts of hospitality for strangers, then share a video or photo of themselves with the person they helped. -Dunkin' Donuts serves dry pork and seaweed donuts in China and grapefruit donuts in Korea.

Deb's Auto Alarms has sold car alarms in the United States for 15 years. Owner Deborah Lefkowitz has read about the opportunities that globalization presents for businesses, and she is thinking about seeking entry to several international markets. She asks you for advice: "I've heard about free trade agreements among different groups of countries: World Trade Organization (WTO), the North American Free Trade Agreement (NAFTA), the European Union (EU), the Association of Southeast Asian Nations (ASEAN), Mercosur in Latin America, the African Free Trade Zone (AFTZ) . . . In general, it seems as though these agreements have had positive effects on economic growth, but they have also been controversial in some ways. What can you tell me about them?" Which of the following statements correctly describes the European Union (EU)? Check all that apply.

-Breaking down trade barriers within Europe has reduced economies of scale, making European companies less competitive. -The EU introduced the euro, a common currency that facilitates travel, trade, and investment. -The global financial crisis of 2008 threatened the EU by exposing differences in the economic strength of its member states.

If Carly wants to improve her global mindset, which of the following activities would help her do so? Check all that apply.

-Following international news by visiting the BBC's website regularly -Traveling to other countries and interacting with local people

As a manager for a company that is looking to expand to India, what should your company focus on? Check all that apply.

-Research and development opportunities -Information technology

Talia lives in Houston, Texas. She has traveled to India several times and is interested in working for a multinational corporation (MNC) with a presence there. She hopes that by working for such a company, she'll first have an opportunity to transfer to a position in India and live there for an extended time and then be able to parlay that international experience into opportunities in other countries. Her research shows that MNCs with a significant presence in India include Nestlé, headquartered in Switzerland; PepsiCo, headquartered in the United States; Sony, headquartered in Japan; and Sun Pharmaceutical Industries, headquartered in India itself. Talia wants to do a lot more research on how these companies operate in India and on the nature of MNCs in general. If Talia is hired as a manager at an MNC, what can she can expect? Check all that apply.

-She and her colleagues will cultivate a global perspective and view the entire world as one market. -Strategy will include finding raw materials and locating production wherever it is most profitable to do so. -The corporate structure will integrate the activities of foreign affiliates.

Which of the following companies has high power distance?

At Sabine Industries, the CEO is seen as the undisputed leader of the office. People are afraid to correct him when he is wrong, and he is always addressed as Mr. CEO, while the people who report to him are addressed by their first names.

Contracts are not viewed as an unchangeable agreement, and managers in this country frequently withhold payments as a tactic in price negotiations.

China

Recently, foreign companies have invested more in business in xxx than they have spent anywhere else in the world.

China

Reading several British newspapers to understand the perspectives of one's UK counterparts on world events and popular culture

Cognitive

Jerzy knows that he will have to expand his operations if he wants to produce enough shoes for an international market. He has heard that there are shoe dyers in the Ukraine who will work for much lower prices than the dyers in his town charge. Jerzy is considering sending some of his work out to a Ukrainian shoe dying factory as a way to keep his costs down while he determines exactly how much demand exists for his product.

Global outsourcing

This country is becoming a rising power in software design, services, and precision engineering.

India

In thinking about it, Jerzy realizes that he and Leon could create a shoe-manufacturing facility in Spain. Doing so would certainly require a large outlay of money, but Jerzy thinks that with his expertise in shoe design and Leon's expertise in navigating Spanish management and business practices, they could create a partnership that has true synergy.

Joint Venture

Making eye contact because this conveys honesty in the other culture

Physical

Which of the following companies has high femininity?

Quality of life is important at Social Science Systems. All employees are eligible for child care, elder care, or pet care services, and employees can take as many vacation days as they need, as long as they get their work done. Employees regularly cooperate with each other to cover difficult or undesirable work shifts.

Carly is applying for a position at a multinational corporation that will require her to work with people in other countries. Fortunately, she has experience doing this. To prepare for her interview, she is reviewing instances when she demonstrated a global mindset during her previous job. She knows that she will show the interviewer she has a global mindset by telling about times she has appreciated and influenced individuals, groups, organizations, and systems with different social, cultural, political, institutional, intellectual, and psychological characteristics. Carly is eager to tell the interviewer about the team she led of product managers from the United States, Latin America, and Europe. At first, team members were unsure of how to relate to each other, but she was able to find common ground and relate in a culturally sensitive way with each one. Which dimension of her global mindset would this experience show the interviewer?

Social dimension

Which of the following companies has long-term orientation?

The owners of Personal Printing and Paper are both thrifty and patient. In their search for the highest quality paper, they actually established a cotton breeding research facility to create new and better types of cotton to be used in their products. Yes, it is going to take a while for them to see a payout on their investment, but it will be worth the wait.

In India, the Swiss pharmaceutical company Novartis International AG is using its Arogya Parivar initiative to increase trust in conventional medicine among the very poor, thereby cultivating a market for its products. Novartis employs health educators to teach laypeople about disease, treatment, and prevention, and it also sends supervisors to assess each local area's needs and provide education to health care providers. It has accompanied this education effort with a different pricing structure, selling medications in smaller packages with smaller price tags. By cultivating this untapped market in a socially entrepreneurial way, Novartis seeks to increase its profits. The effort has been successful enough in India that the company has started similar programs in Kenya and Vietnam and has plans for Indonesia. Novartis is using education to build a market where none has existed before. Why have very poor people been underserved by for-profit companies?

These people have found that the products and services offered for sale are unsuited to their needs.

A company that treats its resources, products, and people as transcending national boundaries is xxx company, and it will hire and transfer people for key positions without regard to nationality.

a geocentric

Jerzy wants to keep his overall costs down and to enter into the international marketplace slowly and carefully. He is considering the use of countertrade, where he would send his shoes to Spain in return for high-quality Spanish cowhides.

exporting

A U.S. company is engaged in xxx when it contracts with a call center in India to handle technical support requests from its customers.

global outsourcing

Because they can move assets and jobs from country to country, MNCs typically xxx over the economies, politics, and culture of the countries in which they do business.

have influence

A manager's basic functions are the same whether she is managing operations in just one country or she is managing operations in more than one country, known as xxx

international management .

Both men and women in Japan tend to subscribe to xxx values, prioritizing achievement, work, and material success. The culture of Sweden, on the other hand, is relatively feminine , and people generally prioritize relationships and quality of life.

masculine

Managers with high cultural intelligence will be xxx effective when assigned to work in another country.

more

People in Greece tend to value conformity and feel uncomfortable with ambiguity; therefore, the Greek culture has high xxx

uncertainty avoidance .