商务英语课后答案

商务英语

第一章

1. Why do some industries become global while others remain local or regional?

There are a number of factors that play a role in determining which industries become global, which become regional, and which remain local. The airline industry, for example, is considered a global industry. One of the main reasons for this status is the cost of developing and producing large aircraft, combined with market size. The industry is “forced” to be global because it must sell aircraft to a marketplace that i s big enough to justify the costs of developing and building new jets. No single country has a market big enough to justify such costs, thus companies must seek customers around the globe. On the other hand, the bakery industry tends to be regional or local because its products tend to perish very easily. While improvements in transportation and shipping have created a larger marketplace, for the most part, firms in this industry cater to local customers. From this brief discussion, it is clear that factors such as cost, market size, and product life all play a role in determining which industries will be global and which will not. However, it is important to recognize that many other factors (for example, resource availability, government regulations, and similarity of customer taste) also play a role in this determination.

2. What is the impact of the Internet on international business? Which companies and which countries will gain as Internet usage increases throughout the world? Which will lose?

The Internet has had a significant impact on international business in at least three ways. First, the Internet facilitates international trade in services (e.g., banking, education, and retailing). Second, it has helped level the playing field between large and small firms entering a foreign market, since even small firms can sell their products internationally on the Web. Third, the Internet can make business to business transactions (e.g., bringing together suppliers and buyers) much easier and more efficient.

3. Which markets are more important to international business – the traditional markets of North America, the European Union, and Japan or the emerging markets? Defend your answer.

Clearly the volume of business in the traditional markets is much greater than the volume in emerging markets. However, as the traditional markets become saturated opportunities for growth will increasingly shift toward emerging markets.

4. Does your college or university have any international programs? Does this make the institution an international organization? Why or why not?

Students who attend a college or university that has international programs will probably find this question interesting. Students who do not have international programs available to them can still find the question worth considering if they use a little imagination. The text defines international organizations to include public sector organizations that cross national borders. With this definition in mind, a college or university could very well be considered an international organization. However, it is important to consider the type of international programs an institution has to offer. For example, one could argue that a university that simply offers several courses that deal with international business is not an international organization because the institution at that point does not cross borders (see definition above). In contrast, it could be argued that a university that offers courses in international business and also offers a student exchange program is an international organization because the missing element in the previous example (of crossing borders) is fulfilled because of the exchange program. The key point in this question therefore is to determine exactly when international programs make a college or university an international organization.

5. What are some of the differences in skills that may exist between managers in a domestic firm and those in an international firm?

When compared to domestic managers, international managers, by definition, are more likely to consider business from a global perspective. In doing so, international managers should consider such variables as exchange rates, cultural differences, differences in the political and economic environments, trade barriers, and so forth. In contrast, the domestic manager is not likely to be concerned with any of these variables and will instead focus on the marketplace. The international manager will probably see the world as the marketplace and in doing so, develop a keen awareness of the differences between markets, while the domestic manager will not.

6. Would you want to work for a foreign-owned firm? Why or why not?

The answer to this question is, of course, based on a student?s opinion and therefore can generate a lot of Some students may already work for a foreign-owned firm; some may work for a foreign-owned firm and not it. Students who work for foreign-owned companies can be asked to contrast their experiences in the company with positions they may have held elsewhere (or can be asked to simply comment on their experiences if they have not held other positions). This can set the stage for a discussion of the merits of working for or not working for foreign-owned companies.

第二章

1. Regional trading blocs, such as the EU and NAFTA, are growing in importance. What are the implications of these trading blocs for international business? Are they helpful or harmful? How may they affect a firm’s investment decisions?

Trading blocs such as the North American Free Trade Agreement and the European Union stand to have a great impact on international business because they change the rules of trade and in some cases, investment, presenting new opportunities but also new threats to both foreign and domestic companies. Whether they are harmful or helpful is difficult to state in just a paragraph or two, but will depend on the perspective of the particular company (or individual). For companies inside a trading bloc, such agreements can be seen as helpful since they can have the effect of keeping nonmember companies out, thus providing a degree of protection to member companies. Moreover, member companies are helped by the increase in effective market size that is a result of such an agreement. On the other hand, since trading agreements essentially create one large market, member companies may find that they face increased competition within the bloc. For companies outside a trading bloc, particularly those that have had a strong trading relationship with a member country, trade agreements can be devastating. Companies may find that they face high tariff and nontariff barriers that prevent them from exporting to the companies within trade bloc. This situation may lead firms to invest in a member country and essentially become an insider.

2. Many American and European business people argue that the keiretsu system in Japan acts as a barrier to foreign companies’ entering the Japanese market. Why do you think they believe this?

The fact that the Japanese market is closed to foreign companies is a popular, and some would argue mistaken, belief among American and European executives. The Japanese keiretsu is a family of interrelated firms in which each firm takes a small ownership position in each of the other companies. The strong ties among keiretsu members may lead to buyer-supplier relationships (if the keiretsu is a vertical one) and may allow firms to take on high-risk investments. Many American and European executives believe that such relationships make it difficult for them to supply their products to Japanese firms, and even break into the market itself. Furthermore, they believe that the keiretsu puts European and American firms at a distinct competitive disadvantage when dealing

with the Japanese. Others, however, will argue that with patience and hard work, companies (for example, Toys “R” Us) can enjoy success in the Japanese market.

3.Ethnic ties, old colonial alliances, and shared languages appear to affect international trade. Why might this be so? If true, how does this affect international businesses’strategies regarding which markets to enter?

Ethnic ties, old colonial alliances, and shared languages affect international trade because they may provide the basis from which a nation emerged. For example, although the United States, a former colony of Great Britain, declared its independence centuries ago, it still shares with its former ruler the same language, cultural heritage, and many beliefs about issues such as democratic rule. These ties with Britain have helped to shape the United States into the country it is today. For American companies, this relationship is beneficial because not only do American companies have easy access to the British market (and British firms to the American market), but they may also find it easier to enter other markets where, for example, English is the spoken language. In addition, if the countries in question have maintained strong ties, it is likely that they will share enemy countries, a factor that could further impact the strategy of an international firm.

4. What can African countries do to encourage more foreign investment in their economies?

A: The nations of Africa are in a difficult situation. Years of political unrest and civil war have labeled the region as a high risk one. If Africa expects foreign firms to invest in the region, it must try to lose the label. The process has already been started with the implementation of new market-oriented policies, and the region is beginning to attract the attention of international firms. To continue the process, Africa can develop more tax-free zones such as the one located in Mauritius, and provide other incentives to attract foreign companies.In addition, efforts must be made to contain any remaining civil unrest, particularly attacks against foreigners.

第三章

1. What options do firms have when caught in conflicts between home country and host country laws? Firms caught between home and host country laws face a difficult situation. If they comply with home country laws, they may find that their activities in the host country are severely limited. Yet, if firms comply with host country regulations they may find themselves under fire in the home country. Depending on the particular situation, firms may find that the best option is to simply choose another location for business. However, in cases where the stakes are high, negotiation with the appropriate party (home or host country government) may be the best option.

2.What is the impact of vigorous enforcement of intellectual property rights on the world economy? Who gains and who loses from strict enforcement of these laws?

The protection of international property rights is the subject of ongoing debate between countries and firms. Firms with patents, copyrights, trademarks, and/or brand names favor strict enforcement of intellectual property rights on a global basis. If such protection is granted, “copycat” firms stand to lose. One might argue that consumers also stand to lose if intellectual property rights are strictly enforced because they will probably pay higher prices. However, some may say that the “copycat” products are inferior to the “real”products. Finally, since most innovation originates in developed countries, and many of the current “copycat” firms are residents of developing countries, one might argue that if intellectual property rights are strictly enforced, developing countries will be hurt by a loss in export sales. It should be noted that it will be difficult to enforce intellectual property rights until the controversy over “first to invent” and “first to file” is ended.

3. Do you agree with the U.S. government’s policies restricting the export of dual-use goods? Why or why not? (You may wish to check out the Bureau of Export Administration’s Web site, which details how the bureau operates.)

The U.S. government restricts the export of dual use goods on the grounds that they may be used for military applications which could threaten the safety of the U.S. and its allies. However, the decision is not a popular one with some industries. By forbidding U.S. firms to export aircraft construction equipment that could be used militarily, American firms lose sales that are filled by European firms. The third country gets the goods anyway, and American firms are cut out of the opportunity to profit from the transaction. In the end, whether the U.S. restricts the export of the goods or not may make little difference, since those who want the technology will simply purchase it elsewhere. Accordingly, some students may feel that the U.S. policy is nothing more than a burden to U.S. firms that will lose sales to foreign companies.

4. Map 3.2 presents the relative political riskiness of countries in 200

5. For which countries has political risk changed significantly since then?

Most students will probably focus on the Middle Eastern countries and those of the former Eastern Bloc and China when answering this question. Certainly, it could be argued that tension has intensified in parts of the Middle East, particularly Iraq, Afghanistan, and Iran. On the other hand, one might argue that much of the former Eastern Bloc has become less risky, and that as China has opened its doors to international trade, it, too, could be considered to be more stable.

第四章

1. How can international businesspeople avoid relying on the self-reference criterion when dealing with people from other cultures?

Reliance on the self-reference criterion refers to the unconscious use of one’s own culture to help assess new surroundings. International businesspeople who rely on their self-reference criterion when dealing with people from other cultures run the risk of creating ill will. It is important for an individual doing business in another country to remember that he/she is the foreigner and must adapt to the culture of the other country. One should attempt to achieve cross-cultural literacy and become familiar with the other culture either directly through personal experience or indirectly via training programs and publications.

Teaching Note:

This concept can be illustrated directly if there are foreign students in a class. Instructors can ask foreign students in their classes about any cross-cultural preparation they received prior to moving to this country, and on the basis of that response, raise the question of what would have made the adjustment process easier.

2. U.S. law protects women from job discrimination, but many countries do not offer women such protection. Suppose several important job opportunities arise at overseas factories owned by your firm. These factories, however, are located in countries that severely restrict the working rights of women. You fear that female managers will be ineffective there. Should you adopt gender-blind selection policies for these positions? Does it make a difference if you have good reason to fear for the physical safety of your female managers? Does it make a difference if the restrictions are cultural rather than legal in nature?

This is a difficult question to answer and instructors may wish to simply raise the issue rather than suggest a correct or incorrect response. From a U.S. manager’s perspective, the correct response would be to take a gender-blind approach to the selection process for these positions; however, from an international business perspective it is important to recall the saying “when in Rome, do as the Romans do.” The U.S. manager’s task

may be made easier if the restrictions are legal rather than cultural because the manager would have a tangible reason for not using a gender-blind selection process. While some students will probably argue that females should not be selected if they could be at risk physically, others will probably point out that women can be taught to protect themselves. This latter concept is reminiscent of the question of whether women in the U.S. Armed Forces should be permitted to engage in combat.

3. Under what circumstances should international businesspeople impose the values of their culture on foreigners with whom they do business? Does it make a difference if the activity is conducted in the home or host country?

Acceptable behavior in one country may not be acceptable in another. International businesspeople must be cautious about relying on their self-reference criterion when doing business with foreigners and adapt their perspectives as much as possible to fit with the foreign culture. In some cases, however, legal restrictions can force international businesspeople to impose the ethics of their culture on foreigners. For example, the Foreign Corrupt Practices Act (discussed in Chapter Eight) prohibits U.S. companies from using bribes when dealing with foreigners. Thus, the ethics of the U.S. culture is imposed on foreigners. In general, though, if business is conducted in the host country, the rules of the host country should be followed, while if business is conducted in the home country, home country rules should be followed.

4. How would you evaluate yourself on each of Hofstede’s dimensions?

Students will probably have a fairly good idea where they stand on each of Hofstede’s dimensions, and they may choose to confirm their beliefs by exploring some of the maps, tables, and figures presented in the section discussing Hofstede’s work. This question can be particularly interesting in a clas s with students from a range of countries and cultures.

5. Assume you have just been transferred by your firm to a new facility in a foreign location. How would you go about assessing the country’s culture along Hofstede’s dimensions? How would you incor porate your findings into conducting business there?

Most students will probably suggest that examining the dimensional maps that identify where different countries lie on each of the dimensions would be a good starting point in assessing the culture of a foreign location. Students might then suggest that managers attempt to translate that knowledge into specific ideas about how business might be conducted. For example, students considering a highly individualistic culture might suggest that reward systems should provide incentives for individual performance rather than group performance.

第五章

1. While people from the same culture are likely to have similar views of what constitutes ethical versus unethical behavior, what factor or factors would account for differences within a culture?

The chapter suggests differences may be the result of individual rationalization, specific circumstances surrounding an event, religious formation, and an individual’s personal values (which may vary somewhat within a culture).

2. Is it valid to describe someone as having “no ethics”? Why or why not?

Students will probably answer “no.” Those who answer “yes” often confuse “no ethics” with“unethical.” We all have individual values (which shape our ethics) –even a value of “there are no moral absolutes” is still a value and one’s ethical system would reflect that premise.

3. People from which countries would likely have similar ethical beliefs as people from England? Why?

This question offers a great opportunity to integrate the material from Chapter Four with the material in Chapter Five. To the extent that individual ethics is affected by culture, people with ethical beliefs most similar to those of the U.K. would be the citizens of the countries with the least “cultural distance” from the U.K. For example, one could re-examine Figure 4.4 and suggest that, in some ways, countries in the lower left quadrant (such as the United States, Netherlands, and Australia, would be the closest to the U.K. on certain ethical norms.

4. Under what circumstances is a code of ethics most and least likely to be effective? Why?

It will be most effective when the units of a company operate within similar parameters

across the globe. When subsidiaries are required to adapt their operations extensively

across different national environments, enforcement of a standardized code of ethics will be more problematic.

5. What do you think is most likely to happen if the ethical behaviors and decisions of a new team of top managers of a firm are inconsis tent with the firm’s long-entrenched corporate culture?

This will create confusion among the rank-and-file employees as to what is considered appropriate behavior. As various forms of behavior are adopted and practiced, ethical standards will become unclear and unenforceable.

6. Do you think social responsibility for a multinational corporation is something best managed locally or globally?

Students will be able to present a case either way. One possible way of addressing this question is to offer a small preview of Chapter Eleven. Firms in global industries may manage social responsibility in a standardized, centralized fashion, while firms in

multidomestic industries may take a decentralized, localized approach.

7. Do multinational businesses ever do socially responsible things that are clearly of no benefit whatsoever to themselves?

Being socially responsible will always benefit some of the organization’s stakeholders. It may not necessarily (or in the short run) benefit shareholders, but it may benefit the local community (or some other group) in a country where the MNC operates. Socially

responsible behavior, almost by definition, benefits someone. In that case, it should at least enhance the firm’s reputation in certain circles.

8. What are the dangers or pitfalls that might be encountered if a multinational business attempts to be socially responsible, but only in ways that provide direct benefits to its profitability?

Such an approach may signal to other stakeholders that the MNC is driven entirely by its commitment to shareholders (at the expense of other stakeholder groups). Its reputation among other stakeholders could be damaged.

9. Under what circumstances, if any, might you see yourself as a whistle-blower? Under what circumstances, if any, might you keep quiet about illegal acts by your employer?

Answers to this question will vary widely across students. It is an excellent way to

encourage class discussion and is probably best used in class discussion to help drive home the issues faced by whistle-blowers and the different reactions a firm’s top

management might display.

10. Do you think there should be more or fewer attempts to regulate international ethics and social responsibility? Why?

This question seeks students’ opinions and has no right or wrong answer. At the heart of this question is the issue of who gets to set the rules. Some students may argue that rules developed by the United Nations are good – some may argue that rules, if developed by the WTO would not be good. Students who lean heavily toward cultural relativism may be more prone to oppose ethics regulation, while students with a more absolutist view of right and wrong may favor international standards (as long as the codes reflect the “right” values).

11.Consider the plight of Mary, the Filipino woman discussed in this chapter. In response to the inquiries of Fortune’s reporter, Motorola issued a statement saying it “has a strict policy of adherence to the laws and labor practices in the countries where it operates, in addition to a rigorous code of conduct.” Is this an adequate response?In your opinion, what responsibility does Motorola have to workers like Mary? Defend your answer.

Students’ answers will vary widely, though almost all will likely feel that Motorola’s response is inadequate. Nailing down what Motorola’s responsibility should be, however, is much more difficult. Motorola can apply pressure on its subcontractor, but to what purpose? Here is where students face the real challenge of defending their position and grappling with the difficulties associated with social responsibility in an international context. 12. Consider the following scenarios:

To assist the sale of your products in a particular foreign market, it is suggested that you pay a 10 percent commission to a “go-between” who has access to high-ranking government officials in that market. You suspect, but do not know, that the go-between will split the commission with the government officials who decide which goods to buy. Should you do it? Does it make a difference if your competitors routinely pay such commissions?

You have a long-standing client in a country that imposes foreign exchange controls. The client asks you to pad your invoices by 25 percent. For example, you would ship the client $100,000 worth of goods but would invoice the client for $125,000. On the basis of your invoice, the client would obtain the $125,000 from the country’s central bank. The client then would pay you $100,000 and have you put the remaining $25,000 in a Swiss bank account in the client’s name. Should you do it? Would it make a difference if your client is a member of a politically unpopular minority and may have to flee the country at a moment’s notice?

Both these questions will force students to wrestle with their own code of ethics. They are good ways to force students to “go deeper” and personalize the content of Chapter Five. Both scenarios most likely describe unethical behavior, though the first one allows students more “wiggle room” (since it is unclear whether any b ribery is truly taking place). The second scenario is clearly wrong (falsifying invoices, diverting funds) and almost all students will recognize it as such.

第六章

1. What are the basic differences between a domestic strategy and an international strategy?

Strategic planners answer many of the same questions regardless of whether they are developing strategies for international markets or for domestic markets. However,

international strategy development is more complex because planners must contend with cultural, political, language, economic, governmental, and geographic differences. Students may wish to refer to Table 10.1 for a summary of common differences between domestic and international operations that affect strategic management.

2. Should the same managers be involved in both formulating and implementing international strategy, or should each part of the process be handled by different managers? Why?

In most cases, strategy formulation and strategy implementation will be handled by different managers. The process of developing an international strategy, or strategic planning, is typically the responsibility of top-level executives at corporate headquarters and senior managers in subsidiaries. In contrast, tactics, the development of specific tactical goals and plans, typically involves middle mangers.

3. Successful implementation of the global and transnational approaches requires high levels of coordination and rapid information flows between corporate headquarters and subsidiaries. Accordingly, would you expect to find many companies adopting either of these approaches in the nineteenth century? Prior to World War II? Prior to the advent of personal computers?

Home replication and multidomestic strategies allow subsidiaries to operate with more

autonomy than the global and transnational strategies do. The day-to-day control and

coordination of subsidiary activities was impossible without good communication technology. Thus, global and transnational strategies were impossible up until World War II. Even after WWII, when international phone calls and telegrams came into more widespread use, it was still nearly impossible for such strategies to be implemented. With direct dial international calls, fax technology, and satellite communications, firms began pursuing such strategies in the 1960s and 1970s. The personal computer, email, teleconferencing (1980s and beyond) made such strategies viable options for almost any company.

4. Study mission statements from several international businesses. How do they differ, and how are they similar?

Depending on which companies are studied, students may find many differences in mission statements, or just a few. Some factors that should be analyzed include target customers and markets, principal products or services, geographical domain, core technologies, concerns for survival, plans for growth and profitability, basic philosophy, and desired public image.

5.How can a poor SWOT analysis affect strategic planning?

The purpose of a SWOT analysis is to identify a firm’s s trengths, weaknesses, opportunities, and threats. The SWOT then becomes a basis from which a company’s strategy is built.Therefore, a SWOT analysis that failed to correctly identify a company’s strengths, weaknesses, opportunities, and threats would potentially have a negative impact on the company’s competitiveness.

6. Why do relatively few international firms pursue a single-product strategy?

Companies that pursue a single-business strategy are more vulnerable to competition and to changes in the external environment than firms following a diversification strategy. A strategy of related diversification, however, allows a firm to leverage a distinctive competency in one market and increase its competitiveness in others. In addition, a firm pursuing a strategy of related diversification may be able to achieve scale economies. A firm following a strategy of unrelated diversification may have an advantage in raising capital, and may be less vulnerable to fluctuations in business cycles and competitive threats.

7. How are the components of international strategy (scope of operations, resource deployment, distinctive competence, and synergy) likely to vary across different types of corporate strategy (single-business, related diversification, and unrelated diversification)?

A company that follows a single-business strategy will probably have a narrower scope of operations than firms following either of the other two strategies. In addition, because a single-business firm is focused on just one area, it can use all of its resources to strengthen that particular business and improve its distinctive competence. Companies following a single-business strategy will probably have fewer opportunities for synergy than a firm following a strategy of related diversification. Firms following strategies of either related diversification or unrelated diversification will probably have to make tradeoffs between units when deploying resources and developing sustainable competitive advantages.

8. The new Disney theme park in Hong Kong opened in 2006. Develop a list of at least five ways other units of the Disney Corporation could have helped promote and publicize the park’s grand opening.

Students will probably have a range of ideas as to how Disney could have promoted its new venture. Many students will probably focus on efforts at existing Asian operations as a starting point, and then explore options for promoting the Hong Kong park within the company’s U.S. parks, stores, and TV station.

9. Is a firm with a corporate strategy of related diversification more or less likely than a firm with a corporate strategy of unrelated diversification to use the same business strategy for all SBUs? Why or why not?

Both firms that are pursuing strategies of related diversification and firms that are pursuing strategies of unrelated diversification tend to group businesses into SBUs. In the former situation, the products and services of each SBU are alike in some ways, while in the latter case, the products and services of each SBU are not alike. The type of strategy, differentiation, overall low-cost producer, or focus chosen for each SBU will reflect theenvironment within which the SBU operates. In some cases, the same basic strategy is chosen for all SBUs; in other cases, strategies will differ.

10. Identify products you use regularly that are made by international firms that use the three different business strategies.

Responses to this question will vary according to the products and companies chosen by students. However, some common products and associated strategies include Bic pens (overall low-cost leadership), Levi's jeans (differentiation), and Honda Accord station wagons (focus).

11. Related and unrelated diversification represent extremes on a continuum. Discuss why a firm might want to take a mid-range approach to diversification, as opposed to being purely one or the other.

Firms may take a mid-range approach to diversification in an effort to capitalize on the

benefits of both strategies, while minimizing the disadvantages. For example, firms often pursue related diversification strategies in an effort to gain economies of scale, or profit from a firm-specific advantage. However, a firm may find its operations in jeopardy if economic conditions change. In contrast, a strategy of unrelated diversification would protect a firm to some extent from this sort of situation. Hence, a mid-range strategy may be a good option for some MNCs.

12. What are some of the issues a firm might need to address if it decides to change its corporate or business strategy? For example, how would an MNC go about changing from a strategy of related diversification to a strategy of unrelated diversification?

There are a wealth of issues to consider when changing strategy. For example, a firm that changes its strategy from related diversification to unrelated diversification would have to consider whether it had the resources (capital and

human) to operate its new ventures. It would also need to consider coordination and organizational structure issues.

第七章

1. Do you think it is possible for someone to make a decision about entering a particular foreign market without having visited that market? Why or why not?

The response to this question probably depends in part on the market in question and the degree of risk one is willing to assume. Typically, managers will not be able to obtain all of the information needed to make a decision about a foreign market from secondary sources. Thus, managers have two options: they can visit the market in person and obtain information directly from local experts, embassy staff, and chamber of commerce officials, or, hire consulting firms to provide the necessary information.

2. How difficult or easy do you think it is for managers to gauge the costs, benefits, and risks of a particular foreign market?

In general, it is probably easier to gauge the costs, benefits, and risks of developed country markets than it is to gauge the same variables in a developing economy. However, there is a fair amount of subjectivity involved regardless of the market In question. For example, managers must estimate not only the costs involved in establishing a foreign operation, but also opportunity costs. In addition, future benefits and risks must be estimated.

3. How does each advantage in Dunning’s eclectic theory specifically affect a firm’s decision regarding entry mode?

Dunning’s eclectic theory considers three factors: ownership advantages, location advantages, and internalization advantages. Ownership advantages affect a firm’s decision regar ding entry mode in that certain types of advantages are more easily transferred through certain modes than others. For example, imbedded technologies are best transferred through equity modes, while simple technology is more suited to a licensing mode. In addition, ownership advantages will affect a firm’s bargaining power, and therefore the outcome of entry mode negotiations. Location advantages affect a firm’s decision regarding entry mode because they affect the desirability of host country production relative to home country production. For example, if home country production is more desirable, perhaps because of low wage rates, a firm will probably choose exporting as an entry mode. Finally, internalization advantages affect a firm’s decision regarding entry mode because they affect the desirability of producing a good or service in-house versus farming it out to another firm. For example, when transaction costs are low, and the firm believes that it can farm out production without jeopardizing its interests, the firm may use licensing as an entry mode.

4. Why is exporting the most popular initial entry mode?

Exporting is the most popular initial entry mode because of its simplicity and its low risk relative to other types of entry modes. Exporting typically requires little or no capital investment, and the dollar amount of risk is limited to the value of a particular transaction. Exporting also allows a firm to enter a foreign market on a gradual basis, and gain experience in the market.

5. What specific factors could cause a firm to reject exporting as an entry mode?

There are several factors that could cause firms to reject exporting as an entry mode, including the presence of trade barriers, logistical Issues, and distribution issues. Firms facing high tariff or nontariff barriers may find host country production preferable to home country production. Logistical considerations may also affect the

desirability of exporting. For example, the higher transportation costs associated with exporting, and the longer supply channel and difficulty communicating with customers may encourage a firm to choose an alternative entry method. Finally, firms that face difficulty finding appropriate distributors may turn to one of the other entry modes.

6. What conditions must exist for an intracorporate transfer to be cost-effective?

An intracorporate transfer occurs when one firm sells goods to an affiliate in another country. Firms engage in intracorporate transfers to lower their production costs and use their facilities more effectively. Therefore, for an intracorporate transfer to be cost-effective, it must be cheaper to buy the product in question from the affiliate firm than from an alternative source, and the affiliate firm must have the capacity necessary to produce the product in question, while the buying firm does not.

7. Your firm is about to begin exporting. In selecting an export intermediary, what characteristics would you look for?

Export intermediaries are third parties that specialize in the facilitation of trade. Depending on the particular circumstances of a firm, employing certain types of intermediaries is more appropriate than employing others. For example, a small firm may select an export management company because it will essentially act as the fi rm’s export department. However, a larger firm that has an in-house export department might engage a freight forwarder on a product-by-product basis.

8. Do you think trading companies like Japan’s sogo sosha will ever become common in the United States? Why or why not?

Sogo soshas acquire goods either by importing them or having them produced, and then resell them in both domestic and foreign markets. Most students will probably agree that sogo soshas will never become common in the United States, in part because of antitrust laws in effect, and in part because the close relationships with other firms that the sogo soshas imply go against the individualistic culture of the United States, Other students, however, may point to export trading companies in the United States that provide many of the same services as a sogo sosha, and suggest that a form of sogo sosha is already common in the United States.

9. What factors could cause you to reject an offer from a potential licensee to make and market your firm’s products in a foreign market?

There are several reasons why a firm might reject the offer of a potential licensee to make and market the firm’s product in a foreign market. First, such an arrangement would limit the market opportunities for the firm, and create a situation of mutual dependency. Second, if the licensee violated the licensing agreement, the licensing firm could face costly and time-consuming litigation. Third, the firm would face a risk of problems and misunderstandings related to the agreement, which could affect the speed of entry into the foreign market. Finally, the firm may be concerned that if it licensed its proprietary information, it may create a future competitor.

10. Under what conditions should a firm consider a greenfield strategy for FDI? An

acquisition strategy?

A greenfield strategy involves setting up an operation from scratch It is attractive to firms because it allows them to select the site that is most appropriate for their needs, start with a clean slate, and acclimate to the local environment at a gradual pace. However, because successful implementation takes time and patience, firms that are facing time constraints should probably select an alternative option. In addition, firms using this method of expansion may find that the desired location is too expensive, or even unavailable; that workforces must be hired

and trained; and that various governmental regulations must be complied with. Finally, greenfield investment is probably not appropriate in cases where it is important for a firm to be perceived as a local firm. Under an acquisition strategy, a firm acquires an existing firm doing business in a foreign country. This strategy makes sense when the purchaser needs to generate revenues from its expansion immediately. Through acquisition, a purchasing firm has an immediate market presence, a distribution system in place, as well as trained employees, brand names, and technology. This strategy would not make sense for a company that is short of capital since it requires substantial sums up front.

第八章

1. What are the relative advantages and disadvantages of joint ventures compared to other types of strategic alliances?

A joint venture is a special type of strategic alliance in that a new business entity is created that is legally separate and distinct from its parents. A primary advantage of a joint venture is that the venture can have a broader purpose, scope, and duration compared to other types of strategic alliances. Moreover, joint ventures tend to be more stable than non-joint venture strategic alliances. Joint ventures in which there is shared management or that are managed by one parent may have difficulties because there may be a tendency to try to please management from the founding companies rather than focusing on what is best for the joint venture. In contrast, non-joint venture strategic alliances are useful because they allow participants to focus on a particular project, yet do so without creating a new entity. Furthermore, nonjoint venture strategic alliances can help firms overcome short-term hurdles.

2. Assume you are a manager for a large international firm, which has decided to enlist a foreign partner in

a strategic alliance and has asked you to be involved in the collaboration. What effects, if any, might the decision to structure the collaboration as a joint venture have on you personally and on your career? Students will probably approach this question in different ways. Some students will take the perspective that if they are assigned to work for the joint venture they will have more exposure to different issues and situations than if they were to continue to work within the large international firm or for a less structured strategic alliance. Students taking this perspective are likely to argue that being a big fish in a small pond is better for their careers than working as a little fish in a big pond. Other students are likely to point out that they may be “left out of the loop” if the alliance is structured as a joint venture because they will n ot be working directly with the parent company on a day-to-day basis as they would if the venture were structured more informally. Finally, other students will point out that having experience working within the environment of a strategic alliance is good experience regardless of whether it is a joint venture or some other type of strategic alliance.

3. What factors could conceivably cause a sharp decline in the number of new strategic alliances formed? The number of strategic alliances being formed has been skyrocketing. Firms are turning to strategic alliances because they are an effective way to compete in international markets. There are several factors that could cause a sharp decline in the number of new strategic alliances, however. For example, war typically alters trade and investment patterns, and therefore one could surmise that it might also affect the number of alliances being formed. Similarly, a sudden increase in protectionism might cause a decline in the number of new cross-border alliances being formed. In addition, antitrust regulation has the potential to affect the number of new strategic alliances being formed.

4. Could a firm conceivably undertake too many strategic alliances at one time? Why or why not?

A number of companies today operate within a web of strategic alliances. The text points out, for example, that IBM has over 40 active strategic alliances. However, it is important to recognize that strategic alliances require strong commitment on the part of a firm if they are to succeed. Therefore, it is conceivable that a firm could spread itself too thin by forming too many alliances. However, the real issue is commitment to alliances rather than sheer numbers.

5. Can you think of any foreign products you use that may have been marketed in this country as a result of

a strategic alliance? What are they?

Students will probably identify a number of products that have been marketed in the U.S. as a result of a strategic alliance. Two of the more common products that might be identified are automobiles and computers.

6. What are some of the issues involved in a firm’s trying to learn from a strategic alliance partner without giving out too much valuable information of its own?

One of the primary benefits of a strategic alliance is the opportunity it provides for cross- learning. However, with this benefit comes one of the primary disadvantages of strategic alliances, the risk of giving away proprietary information. A firm should assess the value of its own information and avoid giving away information that could result in a competitive disadvantage if the strategic alliance is dissolved. In addition, care should be taken to create a “learning objective” so that the opportunity to learn from a partner is not wasted.

7. Why would a firm decide to enter a new market on its own rather than using a strategic alliance?

There are numerous reasons why a firm might decide to enter a new market on its own rather than using a strategic alliance. Some of the more common reasons are protection of proprietary information, distribution of earnings, and strategic autonomy. A firm may want to protect proprietary information and consequently might internalize its expansion effort rather than use a strategic alliance. A firm might want to capitalize on the full potential of a market rather than share profits with a strategic alliance partner. A firm may want to maintain its strategic autonomy and would therefore enter a new market on its own rather than in conjunction with a partner.

8. What are some of the similarities and differences between forming a strategic alliance with a firm from the same country and forming one with a firm from a foreign country?

Many of the issues involved with forming strategic alliances apply to both within-border and cross-border agreements. For example, regardless of whether an alliance is formed within borders or across borders, care should be taken in selecting partners and decisions must be made regarding the form of venture and how it is to be managed. However, cross-border alliances may be more complex than within-border alliances because of physical and physic distance. Firms involved in cross-border alliances may have to adapt to new cultures, political systems, and economic systems, and may have fewer face-to-face work opportunities.

9. Slimline Ltd. is a joint venture among three companies – a local Sri Lankan firm, a British firm, and a U.S. firm. What are the benefits of this joint venture to each of these companies? Why did each choose to form a joint venture, rather than operate its own wholly owned subsidiary? From the perspective of each of the partners, are there any potential pitfalls to joining this joint venture?

The joint venture format allows the British firm (Courtaulds Textiles PLC) and the U.S. firm (Mast Industries Inc.) to capitalize on the local expertise of MAS, the Sri Lankan partner. MAS is able to handle hiring and firing and other functions that require an in-depth understanding of local culture and Sri Lankan law. MAS benefits by having a guaranteed market for its products with Courtaulds and Mast, who supply Marks & Spencer and

Victoria's Secret, respectively. MAS also benefits from the capital invested by the foreign firms, which allows Slimline to automate its accounting and production systems and improve productivity.

All partners must split the profits and split control over the operations. Consequently, each partner is unable to make unilateral decisions. For MAS, the security of built-in buyers limits its flexibility to sell garments produced by Slimline to other potential customers. There is always a danger that MAS could produce comparable garments at other factories and sell them to other British and U.S. distributors. If this were done, the products sold at Marks & Spencer and Victoria's Secret would be less unique.

10. Otis Elevator has sought to obtain first-mover advantages by quickly entering emerging markets with the help of local partners. This strategy has proved very successful for Otis. Should all firms adopt this strategy? Under what conditions is this strategy likely to be successful?

Most students will probably agree that there is no “one-size-fits-all” strategy, and that therefore, all firms should not hasten to adopt Otis Elevator’s strategy of being a first move r without carefully assessing their situations. This strategy is likely to be most successful when local partners are strong competitors in the host market. By linking operations with a company that already enjoys brand recognition, has strong ties with local suppliers and distributors, and possesses a firm grasp of the local business landscape, a firm can quickly capitalize on the opportunities in new markets. However, as Otis has found out, finding partners with these credentials is not always easy. In addition, many students may suggest that firms approach new alliances with a degree of caution so that they do not “spread themselves too thin.”

第九章

1. If a new organization starts out with a global perspective, will it necessarily experience any of the initial impacts of international activity on organization design? Why or why not?

A company that starts out with a truly global perspective will probably not experience any of the initial impacts of international activity on organization design because these impacts are typically experienced by firms as they begin their international involvement, usually with indirect exports, later with limited direct exports, and still later with strong export sales. An organization with a global perspective is the next step in this evolutionary process, one in which a global organization design is employed to take advantage of synergies among international operations.

2. Do managers of international firms need to approach organization design differently from their counterparts in domestic firms? Why or why not?

Most students will probably suggest that managers of international firms must approach organization design differently from their counterparts in domestic firms mainly because of the complexity involved in operating an MNC as compared to a domestic firm. In particular, students will probably point to coordination and communication issues that make the process more difficult, as well as the differences in the operating environments that occur as a result of differing legal, economic, political, and cultural factors.

3. How do the global product, area, functional, and customer approaches to organization design differ? How are they similar?

The global product structure is appropriate for firms that have diverse product lines or product lines sold in diverse countries because it assigns responsibility for specific products or product groups to separate divisions within the organization. In contrast, the global area design is appropriate for firms whose products are not readily transferable across regions because it centers the firm’s activities around specific areas or regions of the world. The global functional design is appropriate for firms that have relatively few products or customers because it requires a firm to create departments or divisions that have worldwide responsibility for the common organizational functions.

Finally, the global customer design is useful for firms that serve different customers or customer groups, each with special needs that call for special expertise because it involves establishing separate departments that are dedicated exclusively to servicing a particular account. Thus, the focus of each structure is quite different, and as such each structure has different implications for communications and control.

4. Why is a global matrix design almost always transitional in nature?

A global matrix design involves superimposing one form of organization structure on top of an existing, different form. A firm using the design attempts to capitalize on both the functional and the product expertise of its employees by forming product groups made up of members from existing functional departments. The design is almost always transitional in nature because after a product development task is completed, the product group may be disbanded. Employees are then reassigned to another task.

5. Why is control an important management function in international business?

Control is the process of monitoring and regulating activities in a firm so that some targeted measure of performance is achieved or maintained. It is an important management function in international business because it allows a company to limit actions that could be detrimental to the success of the organization, and encourage actions that ar e beneficial to the firm. As this chapter’s “Going Global” box points out, it was a lack of such control that led to the downfall of one of Britain oldest banks, Baring Brothers. The three key levels of control in an international business are strategic, operational, and organizational.

6. Do you think the three common types of international organizational control are mutually exclusive? Why or why not?

The three types of international organizational control are strategic, organizational, and operational. Strategic control involves monitoring the development and implementation of strategy, organizational control involves adopting the most appropriate organizational design, and operational control involves focusing on the operating processes and systems within a firm. Most students will probably agree that these types of control are not mutually exclusive. For example, strategic control and organizational control are interrelated in that certain organizational designs facilitate the implementation of certain strategies better than others do. Similarly, students may suggest that operations control could be viewed as a subset of strategic control in that operations control focuses on specific performance issues that may be a part of a broader strategic control system.

7. Which form of control system would you most and least prefer for your own work? Why?

Many students may respond to this question by suggesting that all three control systems are formally present in their organizations. Other students may suggest that some of the control systems are present in their organizations in an informal way only. For example, students that work at small companies may find that strategic and operational controls are clearly present, but that organizational control is less obvious.

8. Which control techniques are most likely to be tailored to international settings? Which can be merely extensions of domestic operations?

Firms use many control techniques. Some of the more common ones include accounting systems, procedures, and performance ratios. Many students will probably suggest that all of these control techniques should be tailored (at least to some degree) to international settings. For example, a firm may allow a subsidiary to use the locally accepted accounting system so that it satisfies local officials and banks, but require that the information also be compiled using the headquarters’ accounting system so that the firm can control and monitor the entire firm in a

meaningful manner. Similarly, while some procedures may be organization wide, others may be adapted to the local culture. Moreover, a firm must recognize differences between its operations that could affect performance ratios, even if the same ratios are used on an organization wide basis.

第十章

1. Which do you think is a more powerful determinant of human behavior, cultural factors or individual differences?

Students will naturally respond to this question in one of two ways. Some students will argue that individual differences are at the root of human behavior, and are, therefore, a more powerful determinant of how an individual differences will be influenced by and reflect the local culture. Students taking this perspective will argue that cultural factors are a more

powerful predictor of human behavior.

2.Think of two or three personality traits that you believe are especially strong in your culture,and two or three that are especially weak . Relate these to Hofstede’s cultural dimensions.

Most U.S. students will probably identify individualism and personal achievement as particularly strong traits in the U.S. culture. Responses by foreign students are likely to be different.

3. Assume you have just been transferred by your company to a new facility in a foreign location. Which of your own personal dimensions do you think will be most effective in helping you deal with this new situation? Does your answer depend on which country you are sent to?

Most students will probably suggest that the best way to assess the foreign country’s culture is through either direct or indirect research. Depending on which country students analyze, most will propose that depending on their findings, their behavior should be modified when negotiating, leading, motivating, and so forth, to adapt to the new culture. Students may also note that being transferred to a fairly similar culture will require less adaptation than being sent to a very different culture.

4. How might perception affect motivation in different cultures?

Perception is the set of processes by which an individual becomes aware of and interprets information about the environment. An individual's cultural background will play a role in how a person interprets their environment. Thus, for example, while an American may see money as a clear way to motivate employees, people from other cultures that do not value money in the same way an American does, may see a raise as a poor way to motivate workers.

5. How might organizations in different cultures go about trying to enhance leadership capabilities?

Good leadership skills will vary by culture. In collectivistic cultures, the group is important, therefore an organization trying to enhance leadership capabilities might emphasize the development of skills that preserve group harmony. In contrast, in a culture that is individualistic, organizations might focus on developing leaders that are skilled in allowing employees to set their own goals. Similarly, in power-oriented cultures, organizations may identify individuals that show direct, structured behaviors and place a lesser value on the development of caring and interpersonally oriented behaviors.

6. Do you think it will ever be possible to develop a motivation framework that is applicable to all cultures? Why or why not?

Most students will probably agree that it would be difficult to develop a motivation framework that is applicable to all cultures simply because cultures place different values on different things. Americans, for example, are usually motivated by money: consequently, companies will frequently use pay raises as a means of motivating employees. However, this type of motivating factor would not succeed in a culture that does not place a high value on money.

7. How do motivation and leadership affect corporate culture?

Corporate culture refers to the idea of “ the way we do things around here” Two critical dimensions of corporate culture are motivation and leadership. To fully understand the role of these two dimensions, students may want to develop a chart depicting different types of cultures (individualistic versus collectivistic. and so on), and then identify what types of motivation and leadership one would find in an organization in each type of culture. discussion (and usually laughter) if they are acted out in class rather than simply discussed. For example, instructors can ask students to play the roles of the Japanese, Australian, and Italian managers who are being transferred to the U.S.

8. What advice would you give to a Japanese, an Australian, and an Italian manager just transferred to the United States?

Most students will probably focus on identifying the differences that Hofstede has suggested exist among the Japanese, Australian, Italian, and U.S. cultures. Students will probably use se differences to make specific suggestions relating to leadership, negotiating, motivating, and so forth.

9. Assume you are leading a team composed of representatives from British, Mexican, Brazilian, and Egyptian subsidiaries of your firm. The team must make a number of major decisions.

a. What guidelines might you develop for yourself for leading the team through its decision-making process? Most students will probably focus on the idea that if they can learn as much as possible about the other cultures, they will be better prepared to handle each individual in the appropriate manner. Thus, many students will in effect suggest treating the foreign managers individually rather than as a group so that the leader can modify his or her behavior according to each situation. However, other students will probably point out that these individuals are meant to be part of a team, and that the idea of teamwork should be stressed.

b. What steps might you take to enhance the team’s cohesiveness? How successful do you think such an effort would be?

Most students will probably recognize that a team made up of British, Mexican, Brazilian, and Egyptian members will be a heterogeneous one, and one that may have conf lid, poor communication, and so forth. Students may suggest that making team members aware of the cultural differences that may impact their behavior would be a start to enhancing the tea m’s cohesiveness, but will probably conclude that such an effort will be difficult to manage.