Exam 8: Section 1: Global Management

In a multinational company, managers at company headquarters may value global consistency as a company policy because global consistency simplifies decision-making at corporate headquarters.

Coca-Cola In recent years, Georgia­based Coca­Cola attempted to reenter the Indian market. Coke was attracted to India's market because India's per capita consumption of carbonated beverages is less than half of Pakistan and about five percent of China's, yet India has the fastest­growing demand for consumer products in the world. Coke's first attempt to enter the Indian market a decade earlier was plagued by gross mismanagement, and the company lost 20 billion Indian rupies. In that first attempt, Coke purchased Thumbs Up, the leading India-based carbonated soft drink. The company hoped to replace Thumbs Up with Coke, while maintaining the Thumbs Up distribution strategy. For its return to the market, Coke built five plants, cut costly staff, revamped transport, and reduced the size and weight of bottles in order to increase a truck's carrying capacity. It also increased its number of distributors and dumped a global advertising campaign that proved irrelevant to the Indian market. -Refer to Coca-Cola. What kind of strategy has Coca-Cola used for its second entry into the Indian market?

Briefly explain the phase model of globalization and list its stages in their appropriate order.

Multinational companies typically have no difficulty determining the correct balance between global consistency and local adaptation.

Which of the following forms of organizing a global business help companies to avoid tariff and nontariff barriers to entry of a given foreign market?

__________is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of people from a particular country.

What are the strategies that can be used to minimize or adapt to the political risk inherent to global business?

As Malta got ready for its admittance into the European Union (EU), the EU removed all taxes on the importation of goods manufactured in Malta. In other words, the EU abolished ________for Malta-manufactured merchandise.

Uganda is one of only two countries in the world that produce a mineral required in the manufacturing of cellular phones. Several mining companies recently moved their operations out of the region due to a bloody civil war resulting from a change in rulers. This is an example of how __________can influence global business.

Multinational corporations are corporations that own businesses in two or more countries.

A country or region that has an attractive business climate for companies that want to go global has found an__________ .

The Japanese government decreed that Japanese snow was different from all others and required that all snow equipment marketed in the country be made in Japan for safety reasons. The elimination of non-Japanese companies from the market is an example of how __________can influence global business.

What are the basic provisions of the General Agreement on Tariffs and Trade (GATT)?. Give three examples of how it benefits U.S. industries.

What is the phase model of globalization? Identify the factors that have allowed companies to follow different paths to globalization. Then explain the nature of the global new venture. Comment on the extent to which it is likely that this latter approach to globalization will increase.

The primary disadvantage of using wholly owned affiliates as the means of entering a foreign market is__________ .

German chip manufacturer Infineon AG has joined with Motorola Inc. and Agere Systems Inc. to establish a new company to develop and license chip designs for cellphones. These three companies have created a__________ .

An expatriate is someone who__________ .

A married manager with two children has been offered the opportunity to go abroad on an expatriate assignment for the company in a foreign country for a period of three years. If the manager chooses to accept the assignment, he or she wants to perform very well in order to continue moving up the corporate ladder. What sorts of preparations should the manager expect the company to provide in order to ensure his or her success on the assignment? Comment on these training and preparatory expectations in an ideal world as well as the real world that the manager probably will face.

New companies with sales, employees, and financing in different countries that are found with an active global strategy are called__________ .

Ernst & Young, an international accounting and management consulting company, entered Hungary first by establishing a joint venture with a local firm. Ernst & Young later acquired the company with which it had the alliance. As a result Ernst & Young then had a(n)__________ in Hungary.