Management Chapter 3 9 Students Think About Career The Business

340. As students think about a career in the business world today, which of the following is a

good strategic suggestion?

341. Which of the following nations has joined the U.S., Japan, and the EU as a key driver of

the world economy?

342. Trade experts’ concerns about trading with China include:

343. Although it has experienced persistent social unrest, multinationals have shown interest

in Russia due to:

344. Which of the following is an advantage of offshore outsourcing?

345. Which of the following statements is a good prediction of future occurrences in global

markets?

346. As surgical procedures become extremely costly (upwards of $100,000 per surgery),

which of the following health benefits strategies is being considered, if not implemented, by

American companies? According to the

Making Ethical Decisions

box:

347. Jill works as a flight attendant for an international airline. While in China, it is convenient

for Jill to find look-alikes in famous brands of watches, purses, clothing, and golf clubs. In fact,

she does her Christmas shopping there and even buys good quality items for auctioning at her

son’s pre-school events back in the U.S. Jill’s actions:

Mini-Case

Since he was five years old, Rhett Tenna struggled with poor eyesight. He suffered through all

the names that went along with wearing eyeglasses for most of his young life. Rhett eventually

switched from traditional eyeglasses to contacts, but he always wondered why glasses were

considered to be “ugly” and not fashionable. After graduation from college, Rhett set out on a

lifelong goal: to make eyewear synonymous with high fashion. He opened a specialty store called

“The Eyes Have It.” His marketing plan was to remove the social stigma of wearing glasses, and

replace it with a sense of flair and high fashion. From the day he opened his first store, Rhett’s

plan met with resounding success. Today, “The Eyes Have It” has grown from that single outlet to

a medium-sized company with dozens of stores located in six states, and a manufacturing plant

that turns out designer frames.

A recent internal audit, however, suggested a problem that Rhett had not anticipated. The study

indicated that the U.S. market is just about saturated and growth of “The Eyes Have It” stores

will be very limited. The audit concerned Rhett until he recognized an untapped market existed

overseas. If people all over the world have the same problem, the global market opportunities are

fantastic! All in favor of going global say: “The Eyes Have It”!

348. Initially, Rhett believed he should maintain his production facilities within the United

States and simply export his designer eyeglass frames to foreign sellers. However, he lacked

expertise in exporting. Rhett decided to see if the federal government could provide any help by

contacting a(n):

349. Although he is confident of success, Rhett is concerned that social, cultural and economic

differences in other nations may create some problems. He believes he should adapt his

approach to these differences rather than trying to force the “American way” on foreign

consumers. Rhett’s attitude suggests that he wants to avoid a(n) ___________ approach to

business.

350. Rhett heard predictions that the value of the U.S. dollar is likely to decline substantially

over the next six months. This should:

351. Rhett spoke with a Korean company that said it might be interested in producing his

products in their market. They would pay him a royalty for what they sold and would bear all the

start-up expenses of this effort. This Korean company is proposing a:

352. The company was informed by the Japanese Ministry of Trade that they could only export

1.5 million pairs of eyeglasses to the Japanese market during a given year. The Japanese have

imposed a(n):

353. Next year, in order to cut both time and cost in getting new styles to global markets,

Rhett plans to _________________ a few lines. Rhett will send his designs to manufacturers in

Saipan, Bangladesh, and Turkey who will produce the eyeglasses in facilities in their respective

countries. This will not only reduce the cost of labor, it will help Rhett reach regional markets in a

timely manner.

354. Explain and provide examples of the difference between comparative and absolute

advantage in global markets.

355. Describe and provide examples of four different strategies for reaching global markets.

356. Explain and provide at least one example of how socio-cultural differences can create

trade difficulties in world markets.

357. Explain and provide at least one example of how legal and regulatory forces impede

global trade.

358. Define offshore outsourcing and explain its pros and cons.