978-1259317224 Chapter 1 Part 2

International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module 1

labor and labor standards

Lecture Outline and Notes:

A. What is globalization and what are the arguments for and against the globalization of business?

B. Globalization has implications across broad ranges of activity, such as political, social,

environmental, historical, geographic, cultural, technological, and political

C. Most common definition of globalization is economic globalization – the tendency toward an

international integration and interdependency of goods, technology, information, labor and capital,

life expectancy

c. Countries that have rejected globalization are among the most impoverished

countries in the world

will be lost, but trade creates new jobs and they tend to be better than the old ones

c. The key is not to block change but to manage the costs of trade adjustment and to

support the transition of workers to more competitive employment

F. Concerns with globalization

example, has not replicated Asia’s success despite efforts to liberalize, privatize and

deregulate its economies and sub-Saharan Africa has received only limited benefits.

c. The gap between rich and poor in the world has increased due to globalization,

according to critics, though the evidence is not clear in this regard.

International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module 1

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3. Globalization has had deleterious effects on labor and labor standards

a. Companies can more readily move to other nations with lower standards and costs,

in a “race to the bottom”

d. Multinationals investing in developing nations may contribute to higher wages,

improved standards, faster job creation, and enhanced R&D

e. Some host countries may feel that lower standards are necessary in order to enhance

competitiveness and improve prospects for investment and economic development

4. Globalization has contributed to a decline in environmental and health conditions.

a. Increased air, water and ground pollution along the Mexico-US border due to

production facilities built there and migration of workers to take jobs in these plants

b. Some rules on international trade may result in the weakening of environmental

standards in order to comply with these new rules, such as allowing higher polluting

Mexican trucks to haul freight on U.S. highways

c. Businesses may have an incentive to move their highest polluting activities to nations

with the least rigorous environmental regulations or lower risk of liability.

5. Economic growth fostered by globalization may help generate and distribute additional

resources for protecting the environment and better technologies and best practices for

use in developing nations.

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International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module 1

CONNECT TOOLS FOR CLASS PREPARATION

SmartBook

What is SmartBook?

SmartBook is a digital version of your course textbook. It contains the same content within the

ensures they are coming to class prepared.

• Proven to help students get a better grade. Studies show SmartBook technology can help

increase grades by a full letter.

• Save time. Study smarter. SmartBook makes sure students focus on the things you don’t

know so they can prioritize your study time wisely.

or finals. Know how well you understand the material now.

How to assign SmartBook to ensure students come to class prepared?

• On the Connect course homepage click “add assignment” > LearnSmart > Select the

chapter

• Decide what content you’d like your students to study, and how much time you’d like

are more likely to complete the assignment.

• The entire LearnSmart/SmartBook module is available to your student at all times,

however, assigning it will prompt students to try it. You are required to select a due date

for this assignment, however, this will not prevent the student from access to the tool; it

is designed to show you that the student has taken the LearnSmart/SmartBook

International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module 1

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document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

• The student’s LearnSmart/SmartBook score in the Connect reports is based on their

mastery of the material at the time the assignment is due. Mastery is an evaluation of

the number of learning objectives they completed via performance on answering

questions.

• Students may, and are encouraged, to continue to use LearnSmart/SmartBook

throughout the semester. After the assignment due date, they can continue to access

this tool. Continued use of LearnSmart will not affect their LearnSmart/SmartBook

assignment results in the Connect reports, but has shown to improve test scores by as

much as a full letter grade.

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International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module 1

ENGAGEMENT & APPLICATION (FACETOFACE & ONLINE & HYBRID)

BOXED TEXT DISCUSSION QUESTIONS WITH SUGGESTED ANSWERS

IB IN PRACTICE: Adapting Listerine to Meet the Different Requirements of

International Markets

adaptations of their product.

Online and Hybrid: Assign questions to be prepared in virtual teams and submitted as a

team assignment, or submitted individually and then discussed in a blog or group discussion site.

Face-to–Face: Students develop responses to the questions in class in teams/groups

1. What challenges might arise as the managers of consumer products such as Listerine

attempt to respond to the many differences of consumers from a variety of nations and

regions of the world?

2. How might these various challenges affect the different activities of a company, such as

manufacturing, marketing and sales, and logistics?

Different countries may have differences in the required packaging types (e.g., glass versus

plastic, recyclable versus non-recyclable), package sizes (e.g., what is affordable to a customer),

product formulation (e.g., what ingredients are allowed to be used), flavors or colors or scents,

International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module 1

a consistent image for marketing purposes, and there may need to be a broad range of

marketing and distribution channels and practices to meet the varying requirements of different

markets. Pricing may also be a challenge, since there may be challenges from such factors as

grey markets (where products are sold in one country and then moved, legally or illegally, to

other nations to exploit pricing or quality differences).

GLOBAL DEBATE: Is the “Bottom of the Pyramid” a Market Worth Serving?

Professor C.K. Prahalad popularized the term “Bottom of the Pyramid” to refer to the

number of such consumers might be large, critics questioned whether the economics associated

with serving these consumers would prove to be sufficiently compelling, and whether a profit–

oriented focus on the world’s most impoverished people was appropriate from an ethical

perspective, especially when marketing products that might be viewed as lower priority for

health and development, for example.

Face-to–Face: Students develop responses to the questions in class in teams/groups, or

else assign perspectives and conduct an in-class debate and discussion.

1. Do you think the base of the pyramid represents an attractive and appropriate market for

multinational corporations? Why or why not? For which products or services might this

market be most appropriate?

The answer to this question will vary, and it is intended to help people think through the issue.

International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module 1

2. If customers at the base of the pyramid could be convinced to allocate some of their

meager income to products such as cigarettes, alcoholic beverages, or cosmetics, would it be

socially responsible for multinationals to pursue such opportunities? Why or why not?

This question raises an issue that almost always generates strong opinions and a variety of

and their ability to understand and adapt to life in another culture, particularly one that is quite

different from one’s home culture. Share conclusions with class, either online or in face–to-face

setting.

Face-to–Face: Students evaluate their own career strategy in light of Holtzman’s advice.

1. What does Holtzman mean, “don’t be afraid to step out of your comfort zone when

you’re abroad”?

He acknowledges that moving outside of your comfort zone may be difficult, producing

uneasiness and stress. However, by undertaking such an effort, you can learn much more about

International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module 1

18

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2. If you were to immerse into a culture that was quite different from your own and

which had a language very different from your own, as Holtzman did, how effective do you

think his recommendations would be for enabling you to adjust effectively? How would you

assess the value of his recommendations, and what other approaches might you use to

1. Business is business, and every firm has to find ways to produce and market its goods.

Why, then, might managers be unable to successfully apply the techniques and concepts they

2. Give examples to show how an international business manager might manipulate one of

the controllable forces in answer to a change in the uncontrollable forces. 

Students will come up with any number of examples such as:

3. Although forces in the foreign environment are the same as those in the domestic

environment, they operate differently. Why is this so? 

The kinds of forces in the two environments are identical, but they operate differently because:

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International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module 1

d. Their values frequently differ widely and sometimes are diametrically opposed.

e. Changes are often difficult to assess. A manager from a country where laws are

vigorously enforced may take literally a new law passed where law enforcement is

less rigorous.

f. Many times, forces are interrelated so that even though the values of a force may be

the same in two markets, values of other forces may be different. The resulting

interactions then would not be similar.

4. 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? 

5. 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

6. “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 rationale.

The comparison of total sales to GNI is similar to comparing apples with oranges. The subsidiary

International Business

Geringer, McNett, Minor, Ball

Instructor Guide to Module 1

20

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document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

jobs available and the earning of foreign exchange if it is exporting from that country. The

important factor is that a firm with operations in various countries permits management to be

flexible in choosing where it wants to produce and supply other subsidiaries and markets. Sales

of the subsidiary, not the entire firm, could have some bearing if they indicate that the affiliate

is significant within the local economy.

7. What examples of globalization can you identify within your community? How would you

8. Why is there opposition to globalization of trade and integration of the world’s economy?

Is there a way the debate can move beyond a simplistic argument for or against globalization

and toward how best to strengthen the working of the global economy in order to enhance

the welfare of the world and its inhabitants? What might this require?

9. You have decided to take a job in your hometown after graduation. Why should you study

international business?

MINICASE: Are You Really Buying American?

This minicase explores the issue of the origin of products and brands, and the companies that

own them. From bumper stickers to tee shirts, the slogan “Buy American” has become a

common refrain from some American consumers. What does it mean to buy American? Is the

Honda Accord made in Marysville, Ohio, any less American than the Nike Air athletic shoe made

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