Deck 4: Managing in a Global Environment

Question 1

International organisations are export-oriented, adopt a multi-domestic approach and appreciate the fact that cultural sensitivity is very important especially since they are at the stage of competitive positioning.

Answer 1

True

Question 2

One of the ways a manager can expand globally is learning by doing which requires a genuine curiosity about other people and culture, an interest in and study of world affairs and international business, and the ability to open your mind and appreciate different viewpoints.

Answer 2

False

Question 3

An MNC is ultimately controlled by multiple independent management authorities that make key strategic decisions relating to their host countries.

Answer 3

False

Question 4

Political instability has experienced by countries such Indonesia, Afghanistan, Libya, Syria, in recent decades increases uncertainty which impacts international management.

Question 5

Some of the major legal-political concerns affecting international business are political risk, political instability, exchange rates and laws and regulations.

Question 6

Stability and a solid, growing economy are two key factors that major companies look for in their global search for countries in which to locate their business.

Question 7

In international business the economic environment represents the economic conditions in the country where the international organisation operates and includes factors such as economic development, exchange rate and interest rates.

Question 8

In a high-context culture communication is used to build personal relationships whereas in a low-context culture communication is used to exchange facts and information.

Question 9

The goal of the EU is to create a powerful single-market system for Europe's millions of consumers, allowing people, goods, and services to move freely.

Question 10

Which of the following statement regarding the three strategies for entering business international is true?

A) Global outsourcing has a high cost to enter for foreign operations than do partnerships.
B) Exporting has more risk involved than does global outsourcing and partnerships.
C) Global outsourcing has the lowest level of ownership of foreign operations.
D) Partnerships have the highest level of ownership of foreign operations.
E) Partnerships have the lowest cost to enter foreign operations.

Question 11

_________________________________ are the various tactics such as exporting, licensing and direct investing used by managers to enter foreign markets.

Question 12

A ______________________________ is often the fastest, cheapest and least risky way to get into the global game.

Question 13

In international management the economic, legal-political and ____________________ sectors present the greatest difficulties for managers of stateless organisations.

Question 14

Social values and communication differences are factors within the _________________________ that influence international management.

Question 15

___________________________ is the rate at which a country's currency is exchanged for that of another country, whereas ____________________ measures the cost of borrowing money.

Question 16

A country's transportation, energy-producing and communication facilities constitute its ___________________________.

Question 17

What is serving the bottom of the pyramid (BOP)?

Question 18

Define market entry strategies and list the three strategies used by organisations to enter new international markets.

Question 19

Discuss the concept 'multinational corporations'.

Question 20

TT Brothers is a manufacturing firm that produces winter clothing for kids. The firm wishes to go grow their business by moving overseas with their products. As a management consultant, discuss the various market entry strategies that TT Brothers can adopt to realise this goal.

Question 21

Understanding the social values of other countries is essential in international management. A research conducted by Geert Hofstede identified four dimensions of national value systems that influence organisational and employee working relationships. Briefly explain these four dimensions, and expound on how the GLOBE research extended Hofstede's idea.

Question 22

Today's global economic is borderless, hence globalisation is the order of the day. Describe the various stages that the process of globalisation passes through.

Question 23

Communication differences are one of the factors within the sociocultural environment that influence the international management of organisations. Differentiate between high-context culture and low-context culture and identify two countries that have each culture.

Question 24

Describe the Association of South East Asian Nations (ASEAN) highlighting the major developments since its inception.