978-0134200057 Chapter 1 Solution Manual

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Questions

1.1 Professional athlete A is a star. And professional athlete B is an average player. How has the

globalization of professional sports affected each of these both positively and negatively?

1-2 As you read the chapter, identify and show an example of each international mode of operations that

is illustrated in the globalization of professional sports.

TEACHING TIPS: Carefully review the PowerPoint slides for Chapter One. A good Internet

source of information on globalization can be found at www.globalization101.org. Finally,

review the atlas provided in the text, where you will find maps of the world and its continents,

as well as a country index.

Questions

1-3 What specific steps has Carnival Cruise Lines taken to benefit from global social changes?

1.4 What economic factors influence success of the international cruise industry? Explain how each

affects such success.

1.5 Although most cruise line passengers are from the United States, the average number of annual

vacation days taken by U.S. residents is lower than that of workers in most other high-income

countries (13 days, compared with 42 days in Italy, 37 in France, 35 in Germany, and 25 in Japan).

How might the cruise lines increase sales to people outside the United States?

1.6 What threats exist for the future performance of the cruise-line industry and, specifically, of Carnival

Cruise Lines? If you were in charge of Carnival, how would you (a) try to prevent these threats from

becoming reality, and (b) deal with them if they were realized?

While the potential market for Carnival seems very attractive, port capacity could well become an

issue. The deep water and the massive facilities required to dock a liner in any port are limited. In

addition, there are passionate cries from environmentalists regarding the damage (pollution of the

To proactively deal with the possibility of a downturn, Carnival should invest heavily in research and

If Carnival finds that it must react to a downturn, it should always think in terms of all of its

stakeholders, not just its stockholders. Of course, it will want to minimize any damage to its

ADDITIONAL EXERCISES: The Globalization Process

Exercise 1.1. Ask students to identify firms, both domestic and foreign that operate internationally.

Take time to explore the extent and nature of their operations. Also, discuss a logical geographical

pattern of expansion for each type of operation. Conclude the discussion by examining the list to

determine if there are any particular types of firms that seem to lend themselves (or not) to global

operations and strategies. Have the students explain why this might be so. (LO: 2, Learning

Outcome: To understand why companies engage in international business and why international

business growth has accelerated, AACSB: Dynamics of the Global Economy.)

Exercise 1.2. Ask students why they think the world’s largest theme park operator, the Walt

Disney Co., was motivated to establish parks in Tokyo, Paris, and Hong Kong. What particular

market characteristics of each of those sites were especially attractive? Conclude the discussion by

asking students if they believe that Disney should establish additional foreign parks, and if so, when,

where, why, and how? (LO: 4, Learning Outcome: To become familiar with different ways in which

a company can accomplish its global objectives, AACSB: Analytical Skills.)

Exercise 1.3. Divide students into small groups and ask them to explore the costs of the

globalization process. What are the major issues? What companies seem to promote corporate

responsibility in all aspects of their businesses? What can and/or should be done to encourage

seemingly less-than-responsible businesses and governments to change their ways? (LO: 4,

Learning Outcome: To become familiar with different ways in which a company can accomplish its

global objectives, AACSB: Analytical Skills.)