Global Business 4th Edition

CHAPTER 1 GLOBALIZING BUSINESS LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. explain the concepts of international business and global business, with a focus on emerging economies. 2. give three reasons why it is important to study global business. 3. articulate one fundamental question and two core perspectives in the study of

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. What is the traditional definition of IB? How is global business defined in this book? International business (IB) is defined as (1) a business firm that engages in international (cross border) economic activities and/or (2) the action

CHAPTER 10 ENTERING FOREIGN MARKETS LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. understand how institutions and resources affect the liability of foreignness. 2. match the quest for location-specific advantages with strategic goals (where to enter). 3. compare and contrast first-mover and late-mover advantages (when to enter). 4. follow the

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. How do foreign firms suffer from liability of foreignness? First, there are numerous differences in formal and informal institutions governing the rules of the game in different countries. the rules of the game in different countries. the rules of

CHAPTER 11 MANAGING GLOBAL COMPETITIVE DYNAMICS LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. understand the industry conditions conducive to cooperation and collusion. 2. outline how formal institutions affect domestic and international competition. 3. articulate how resources and capabilities influence competitive dynamics. 4. identify the drivers for attacks, counterattacks, and signaling. 5. discuss

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. Explain the differences between tacit and explicit collusion. Tacit collusion: firms indirectly coordinating actions by signaling their intention to reduce output and maintain pricing above competitive levelsExplicit collusion: firms directly negotiating output and pricing and dividing markets reduce

CHAPTER 12 MAKING ALLIANCES AND ACQUISITIONS WORK LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. define alliances and acquisitions. 2. articulate how institutions and resources influence alliances and acquisitions. 3. describe how alliances are formed. 4. outline how alliances are evolved and dissolved. 5. discuss how alliances perform. 6. explain why firms undertake acquisitions. 7. understand

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. List several examples of contractual alliances and several examples of equity-based alliances. In regards to the examples, the important thing is not so much the answer as the extent to which the student demonstrates thought in providing the

CHAPTER 13 STRATEGIZING, STRUCTURING, AND LEARNING AROUND THE WORLD LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. describe the relationship between multinational strategy and structure. 2. explain how institutions and resources affect strategy, structure, and learning. 3. outline the challenges associated with learning, innovation, and knowledge management. 4. participate in two leading debates

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. The pressure to reduce costs is common to both domestic and international competition, but what additional kind of pressure is unique to international competition? What is unique in international competition is the pressures for local responsiveness, which

CHAPTER 14 COMPETING ON MARKETING AND SUPPLY CHAIN MANAGEMENT LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. articulate three of the four Ps in marketing (product, price, and promotion) in a global context. 2. explain how the fourth P in marketing (place) has evolved to be labeled supply chain management. 3.

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. ON CULTURE: What cultural issue could be involved in product decisions in terms of localization versus standardization? Many examples could be given. McDonalds operates around the world and some of their operations and product line sometimes have to

CHAPTER 15 MANAGING HUMAN RESOURCES GLOBALLY LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. explain staffing decisions with a focus on expatriates. 2. identify training and development needs for expatriates and host-country nationals. 3. discuss compensation and performance appraisal issues. 4. understand labor relations in both home and host countries. 5. discuss how

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. Name and describe three staffing approaches. Ethnocentric approach is an emphasis on the norms and practices of the parent company (and the parent country of the MNE) by relying on PCNs. Polycentric approach is an emphasis on the norms

CHAPTER 16 FINANCING AND GOVERNING THE CORPORATION GLOBALLY LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. outline the two means of financing decisions, equity and debt. 2. differentiate various ownership patterns around the world. 3. articulate the role of managers in both principalagent and principalprincipal conflicts. 4. explain the role of the

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. What are the two primary means of financing? How do they differ? The two primary means involve equity and debt. Equity (stock) represents ownership and control that is not restricted to any period of time whereas debt

CHAPTER 17 MANAGING CORPORATE SOCIAL RESPONSIBILITY GLOBALLY LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. articulate what is a stakeholder view of the firm. 2. apply the institution-based and resource-based views to analyze corporate social responsibility (CSR). 3. participate in two leading debates concerning CSR. 4. draw implications for action. GENERAL TEACHING SUGGESTIONS Ask your students

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. How do you define global sustainability? Global sustainability is the ability to meet the needs of the present without compromising the ability of future generations to meet their needs around the world. Global sustainability is the ability to

CHAPTER 2 UNDERSTANDING FORMAL INSTITUTIONS: POLITICS, LAWS, AND ECONOMICS LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. explain the concept of institutions and their key role in reducing uncertainty. 2. articulate the two core propositions underpinning an institution-based view of global business. 3. identify the basic differences between democracy and totalitarianism. 4. outline

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. ON CULTURE: Is there any relationship between the culture of a given country and the extent to which it will likely have a dynamic, growing economy? Are there cultures that would be more likely to limit

CHAPTER 3 EMPHASIZING INFORMAL INSTITUTIONS: CULTURES, ETHICS, AND NORMS LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. define culture and articulate its four main manifestations: language, religion, social structure, and education. 2. discuss how cultures systematically differ from each other. 3. understand the importance of ethics and ways to combat corruption. 4. identify

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. ON CULTURE: As you review how cultures differ from each other, imagine that you want to develop a flexible and mobile work force that is not controlled by a given culture but could easily relocate to

CHAPTER 4 LEVERAGING RESOURCES AND CAPABILITIES LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. define resources and capabilities. 2. explain how value is created from a firms resources and capabilities. 3. articulate the difference between keeping an activity in-house and outsourcing it. 4. explain what a VRIO framework is. 5. understand how to

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. Describe at least three types of tangible and intangible resources and capabilities. Tangible resources and capability include the following four types: oFinancial resources and capabilities. oPhysical resources and capabilities: plants, offices, and equipment, their geographic locations, and access

CHAPTER 5 TRADING INTERNATIONALLY LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. use the resource-based and institution-based views to answer why nations trade. 2. understand classical and modern theories of international trade. 3. realize the importance of political realities governing international trade. 4. participate in two leading debates concerning international trade. 5. draw implications

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. Look at PengAtlas Maps 2.1 (Top Merchandise Importers and Exporters) and 2.2 (Top Service Importers and Exporters). Compare the global position of the United States in merchandise versus service imports and exports. a. Does the United States

CHAPTER 6 INVESTING ABROAD DIRECTLY LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. use the resource-based and institution-based views to answer why foreign direct investment (FDI) takes place. 2. understand how FDI results in ownership, location, and internalization (OLI) advantages. 3. identify different political views on FDI based on an understanding

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. What is the primary difference between FDI and FPI? Foreign direct investment (FDI) is investing in, controlling, and managing value-added activities in other countries. Foreign portfolio investment (FPI) refers to investment in a portfolio of foreign securities

CHAPTER 7 DEALING WITH FOREIGN EXCHANGE LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. understand the determinants of foreign exchange rates. 2. track the evolution of the international monetary system. 3. identify firms strategic responses to deal with foreign exchange movements. 4. participate in three leading debates concerning foreign exchange movements. 5. draw

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. ON CULTURE: Suppose that in country X, the culture is one that avoids risk and frowns on gambling. Suppose the country uses the US dollar in its international transactions, and a firm in X buys a

CHAPTER 8 CAPITALIZING ON GLOBAL AND REGIONAL INTEGRATION LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. make the case for global economic integration. 2. understand the evolution of the GATT and the WTO, including current challenges. 3. make the case for regional economic integration. 4. understand regional economic integration efforts in Europe,

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. ON CULTURE: Suppose the people of a given country place a very high value on their economic independence and control over their economic destiny. However, suppose the leaders of that country wish to join the EU

CHAPTER 9 GROWING AND INTERNATIONALIZING THE ENTREPRENEURIAL FIRM LEARNING OBJECTIVES After studying this chapter, you should be able to: 1. define entrepreneurship, entrepreneurs, and entrepreneurial firms. 2. identify the institutions and resources that affect entrepreneurship. 3. discuss three characteristics of a growing entrepreneurial firm. 4. understand how international strategies for entering foreign markets are different

END-OF-CHAPTER GUIDE *Review Questions and Answers *Critical Discussion Questions and Answers *Global Action *Closing Case REVIEW QUESTIONS AND ANSWERS 1. Based on your definition of entrepreneurship, can a firm be truly entrepreneurial if it does not expand globally? The definition of entrepreneurship does not specify that an entrepreneur must expand globally. Entrepreneurship is the identification and exploitation of