Schermerhorn Exploring Management 5th edition Instructor’s Manual
Multiple-Choice Questions
1. In addition to gaining new markets, businesses go international in the search for
____________.
2. When boot-maker Rocky Brands bought 70% ownership of a manufacturing company in the
Dominican -Republic, Rocky was engaging in which form of international business?
3. When Limited Brands buys cotton in Egypt and has pants sewn from it in Sri Lanka
according to designs made in Italy and then sells the pants in the United States, this is a form
of international business known as ____________.
4. When foreign investment creates new jobs that are filled by local domestic workers, some
call the result ____________ as opposed to the more controversial notion of outsourcing.
5. When a Hong Kong firm makes an agreement with the Walt Disney Company to use the
Disney logo and legally make jewelry in the shape of Disney cartoon characters, Disney is
engaging in a form of international business known as ____________.
6. One major difference between an international business and a transnational corporation is
that the transnational tries to operate ____________.
7. The Foreign Corrupt Practices Act makes it illegal for ____________.
(a) U.S. businesses to work with subcontractors running foreign sweatshop operations
8. The World Trade Organization, or WTO, would most likely become involved in disputes
between countries over ____________.
9. The athletic footwear maker New Balance discovered that exact copies of its running shoe
designs were on sale in China under the name “New Barlun.” This is an example of a/an
____________ problem in international business.
10. When the profits of large international businesses are disproportionately high relative to
those of smaller firms and even the economies of some countries, this is called
____________.
11. If a new government seizes all foreign assets of global firms operating in the country, the loss
to foreign firms is considered a ____________ risk of international business.
12. Who gains most when the dollar weakens versus a foreign currency such as the Brazilian
real?
13. Which of the following is identified by researchers as a universal inhibitor of leadership
success across cultures?
(a) Being positive.
19. What is the difference between currency risk and political risk in international business?
Currency risk in international business involves the rise and fall of currencies in relationship
with one another. For an American company operating in Japan, currency risk involves the
Integration and Application Questions:
Integration and Application Question
20. Picture yourself sitting in a discussion group at the local bookstore and proudly signing
copies of your newly published book, Business Transitions in the New Global Economy. A
book buyer invites a comment from you by stating: “I am interested in your point regarding
the emergence of transnational corporations. But, try as I might, a company like Ford or
Procter & Gamble will –always be ‘as American as Apple pie’ for me.”
Questions: How would you respond in a way that both (a) clarifies the difference between a
multinational and a transnational corporation, and (b) explains reasons why Ford or P&G
may wish not to operate as or be viewed as “American” companies?
Schermerhorn Exploring Management 5th edition Instructor’s Manual
Self-Assessment 17: Global Intelligence
Instructions
Use the following scale to rate yourself on these 10 items.
1= Very poor 2 = Poor 3 = Acceptable 4 = Good 5 = Very good
2. When someone presents me with a different point of view, I try to understand it rather than
attack it.
4. I am open to new situations and am always looking for new information and learning
opportunities.
6. I am always gathering information about other countries and cultures and trying to learn from
them.
8. I work hard to increase my understanding of people from other cultures.
10. I can recognize when cultural differences are influencing working relationships, and I adjust
my attitudes and behavior accordingly.
Interpretation
To be successful in the global economy, you must be comfortable with the cultural diversity that
it holds. This requires a global mindset that is receptive to and respectful of cultural differences,
global knowledge that includes the continuing quest to know and learn more about other nations
and cultures, and global work skills that allow you to work effectively across cultures.
Scoring
Class Exercise 17: American Football
Instructions
Form into groups as assigned by the instructor. In the group, do the following:
Team Project 17: Globalization Pros and Cons
Question
“Globalization” is frequently in the news. You can easily read or listen to both advocates and
opponents. What is the bottom line? Is globalization good or bad, and for whom?
Instructions
1. What does the term “globalization” mean? Review various definitions, and find the common
2. Read and study the scholarly arguments about globalization. Summarize what the scholars say
about the forces and consequences of globalization in the past, present, and future.
3. Examine current events relating to globalization. Summarize the issues and arguments. What
is the positive side of globalization? What are the negatives that some might call its “dark” side?
Practice Critical Thinking: Harley Davidson – Style and Strategy with a
Global Reach
Although the company had been exporting motorcycles ever since it was founded, it was not until
the late 1980s that Harley-Davidson management began to think seriously about international
Schermerhorn Exploring Management 5th edition Instructor’s Manual
• Competitors: Honda, Kawasaki, Ultra, Triumph, Viper, Polaris Industries.
Suggested Team Exercise for Chapter 17
International Business Research
Organize the class into teams of three or four. Assign each team a country to research in depth. I
recommend that you select major emerging economies such as India or China, as well as
countries that may be somewhat obscure to increase interest. Each team should have a different
country. (You could assign this as an individual assignment, as well).
Each team should prepare a presentation to the class on their assigned country.
Two excellent websites that you may refer the teams to use, among other resources, are:
and also NationMaster.com:
Each team should provide a thorough report to the rest of the class based on their research
including some of the following (much more could be added if you wish to make this an in-depth
project):
• Using a globe, show the country’s location
• How big is the country? Compare it to another country or state
• What is (are) the primary religion(s)?
• What is the primary language?
• What is the literacy rate (%) of the entire population?
• What type of government?
• What is the name of the capitol?
• What currency is used in the country.
• Provide an overview of the economy. What are the main industries, exports, imports?
• What is the GDP per capita? (This is a good relative indicator of a country’s wealth or
Schermerhorn Exploring Management 5th edition Instructor’s Manual
Assign each student (this may be an individual assignment, or you may prefer to use pairs or