Solution Manual
Book Title
International Business: The Challenge of Global Competition 13th Edition

978-0077606121 Chapter 5 Answers to Questions

April 7, 2019
Chapter 05 - Natural Resources and Environmental Sustainability
Answers to Questions
1. Of the 38 nations listed by the UN as the least developed nations in the world, 16 are landlocked. How
might being landlocked contribute to slower development? Remember that Switzerland is landlocked as
you think through this question.
The lack of a seacoast is probably a contributing factor to lack of development. The distance from a
2. Comment on the potential of oil shale and oil sands as future energy sources.
Currently, 39 percent of Canada’s petroleum comes from the Athabasca oil sands, and the present per
barrel price of cruse oil ($140) makes oil sands a reasonable alternative. It is estimated that 3 million
Chapter 05 - Natural Resources and Environmental Sustainability
3. Why do you suppose the blank areas on a population map generally coincide with the areas of higher
elevation on a topographical map? b. Why are the tropics an exception to this rule?
Except in the tropics, the population density decreases as the elevation increases
4. “International businesspeople, unless they are in the business of refining minerals or petroleum, have
no need to concern themselves with world developments in natural resources.” Agree or disagree with this
assertion, explaining your reasoning.
Students will want to disagree with this assertion. New discoveries may create markets in countries
5. Mountains, deserts, and tropical rain forests are generally culture barriers. Explain.
People on one side of the barrier frequently differ in language, economy, religion and race from those
on the other side. The east-west highland system of Europe separates Mediterranean culture from that
6. In 2005, Switzerland, a landlocked country, won the America’s Cup sailing competition. How might
this be explained using Porters factor conditions?
All of the natural factor conditions that the Swiss have inherited may be seen as disadvantages for
Chapter 05 - Natural Resources and Environmental Sustainability
7. From an international businessperson’s point of view, how would you apply what you have learned
about factor conditions as you explore locations for manufacturing?
Of interest would be locations with natural factors conducive to transportation and near to any
8. Explain how the stakeholder model applies to a specific example of sustainable business. This example
can be from your community, the business press, or class discussion.
The stakeholder model considers business in its social context and suggests that the business would
9. How is the concept of sustainable business practice both local and global?
Sustainable business is local because everything happens at a local level. For example, the ice flows
Minicase 5.1
The BlueGreen Alliance: A New Way of Thinking for Sustainability
Sustainability and Collaboration: A New Way of Thinking: Steelworkers and the Sierra Club: A Case in
The question for this case requires students to predict the effectiveness of this coalition. Their reasoning
Chapter 05 - Natural Resources and Environmental Sustainability
Exercise One
You are working for a company that is deciding whether or not to enter South Asia. Top
executives have requested a report on the natural environment in this region. Specifically, they
are interested in gaining a better understanding of the main trends with respect to the land, air,
and water. Using the South Asia Environment Outlook in the South Asian Association for
Regional Cooperation website as reference, prepare a short report summarizing the key
environmental trends in South Asia.
Go to Resource Desk: http://globaledge.msu.edu/ResourceDesk/
Exercise Two
Your company wants to become more environmentally sustainable. Utilize resources available on
the globalEDGE website regarding sustainable development and business to prepare a brief
report that explains the concept of sustainable development and discusses why it is important for
companies to engage in environmentally sustainable practices. In addition, compile a short list of
steps that companies should take to become more environmentally sustainable.
Go to Resource Desk: http://globaledge.msu.edu/ResourceDesk/
Chapter 05 - Natural Resources and Environmental Sustainability

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