International Management
Chapter 1
Q1. What are the differences between international, global, and multidomestic companies?
Multinational company : An organization with multi country affiliates, each of which formulates its own business strategy based on perceived market differences.
Global company : An organization that attempts to standardize and integrate operations worldwide in all functional areas.
International company : Either a global or a multi domestic company
Q2. 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.
Uncontrollable forces(External forces) :
Physical/political/Sociocultural/Competitive/Economic/Socioeconomic/Distributive/Financial/Legal
Manager can lobby for a changing a law and promoting a new product which requires changes in a cultural attitude.
Q3. "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." True or False? Explain.
False.
GNI is different from sales volume in terms of a calculation method. GNI is a measure of value added, not sales. And each subsidiary of global firms is also a local company that must comply with law in the country where it is located.
Q4. Discuss the forces that are leading international firms to the globalization of their sourcing, production, and marketing.
5 major forces : Political, Technological, Market, Cost, and Competitive
Followings are the five change-based drivers that are leading international firms to globalize their operations, with an example for each kind : (1)political-preferential trading agreements, (2)technological-advances in communications technology, (3)market-global firms become global customers, (4)cost-globalization of product line and production helps reduce costs by achieving economies of scale, and (5)competitive-firms are defending their home markets from foreign
Q1. What are the differences between international, global, and multidomestic companies?
Multinational company : An organization with multi country affiliates, each of which formulates its own business strategy based on perceived market differences.
Global company : An organization that attempts to standardize and integrate operations worldwide in all functional areas.
International company : Either a global or a multi domestic company
Q2. 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.
Uncontrollable forces(External forces) :
Physical/political/Sociocultural/Competitive/Economic/Socioeconomic/Distributive/Financial/Legal
Manager can lobby for a changing a law and promoting a new product which requires changes in a cultural attitude.
Q3. "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." True or False? Explain.
False.
GNI is different from sales volume in terms of a calculation method. GNI is a measure of value added, not sales. And each subsidiary of global firms is also a local company that must comply with law in the country where it is located.
Q4. Discuss the forces that are leading international firms to the globalization of their sourcing, production, and marketing.
5 major forces : Political, Technological, Market, Cost, and Competitive
Followings are the five change-based drivers that are leading international firms to globalize their operations, with an example for each kind : (1)political-preferential trading agreements, (2)technological-advances in communications technology, (3)market-global firms become global customers, (4)cost-globalization of product line and production helps reduce costs by achieving economies of scale, and (5)competitive-firms are defending their home markets from foreign