Chapter 01 - The Challenging World of International Business
6. Why, in your opinion, do the authors regard the use of the self-reference criterion as “probably
the biggest cause of international business blunders”? Can you think of an example?
When a situation familiar to the manager arises, there is a tendency to respond without analyzing the
reasons from another cultural viewpoint, especially if it is something he or she has dealt with successfully
7. Discuss some possible conflicts between host governments and foreign-owned companies.
International firms have grown in size and number. As a result, they have become increasingly significant
8. “A nation whose GNI is smaller than the sales volume of a global firm is in no position to enforce
its wishes on the local subsidiary of that firm.” Is this statement true or false? Please explain your
The comparison of total sales to GNI is similar to comparing apples with oranges. The subsidiary must
obey a nation’s laws or run the risk of legal action or even expropriation. Admittedly, a global or
9. Discuss the forces that are leading international firms to the globalization of their sourcing,
production, and marketing.
10. What examples of globalization can you identify within your community? How would you
classify each of these examples (e.g., international investment, international trade)?
11. Why is there opposition to globalization of trade and integration of the world’s economy? Please
assess the major arguments for and against such globalization efforts.
Essentially, the pro-globalization debate centers on free trade and its benefits. The opposition points to