Solution Manual for Global Business, 5th Edition by Peng
Mike, Verified Chapters 1 - 17, Complete Newest Version
Which of the following tasks should a shoe manufacturing company perform first if it
needs to assess the global market opportunity?
screen countries to identify foreign markets
assess the suitability of the company's shoes for foreign markets
choose foreign business partners
analyze the firm's readiness to internationalize - ANSWER: analyze the firm's
readiness to internationalize
Which of the following is true about global teams?
Operational global teams identify or implement initiatives that enhance the long-
term direction of the firm in its global industry.
Strategic global teams focus on the efficient and effective operation of the business
across the whole network.
To develop global strategies, the team should include culturally diverse managers
whose business activities span the globe.
It is a locally distributed group of employees charged with specific problem solving
that affects company operations at the domestic scale. - ANSWER: To develop global
strategies, the team should include culturally diverse managers whose business
activities span the globe.
Organizational culture is ________.
an organizational design in which all international activities are centralized within
one division in the firm, separate from domestic units
a reporting structure inside the firm that specifies the links between people,
functions, and processes
an approach in which a firm views international business as separate from, and
secondary to, its domestic business
the pattern of shared values, behavioral norms, systems, policies, and procedures
that employees learn and adopt - ANSWER: the pattern of shared values, behavioral
norms, systems, policies, and procedures that employees learn and adopt
,A culturally diverse team would ________.
follow country-specific ethical standards across the globe
use diverse languages for business communications across various teams across the
globe
create a global view inside the firm while remaining in touch with local realities
use local employees, for accountability, for all major company decisions - ANSWER:
create a global view inside the firm while remaining in touch with local realities
A favorable global market opportunity for a firm would most likely lead to ________.
the establishment of a production facility
the procurement of new distributors
the sale of corporate stock
a change in product packaging - ANSWER: the establishment of a production facility
Happy Pet Internationalization (Scenario)
Based in California, the Happy Pet Corporation has 45 pet supply stores across the
United States. Given the firm's success in the U.S. market, Happy Pet managers are
considering internationalizing their operations to the EU. The market research
conducted by the company identified several established pet product manufacturing
companies. Beth Schultz, the founder and CEO of Happy Pet, has expressed concerns
about expanding the firm's operations into the EU. She believes internationalizing in
the EU is not profitable because of the presence of these established competitors.
However, Edward O'Neal, the COO of Happy Pet, believes the corporation is ready
for the next step. Happy Pet executives and managers have gathered to discuss their
organization's readiness to internationalize.
Which of the following should most likely be considered in determining whether
Happy Pet is ready - ANSWER: What demands will internationalization make on
Happy Pet's financial resources?
________ refers to a cross-border business alliance whereby partnering firms pool
their resources and share costs and risks to undertake a new business venture.
International collaborative ventures
Acquisitions
, Turnkey operations
Greenfield investments - ANSWER: International collaborative ventures
CEO Hiring Interview (Scenario)
The Ace Children's Clothing Company is a mature MNE that has been manufacturing
and selling children's clothing in Ace stores around the world for 30 years. Ace has
seen a downturn in global sales recently due to trendy adult clothing companies
branching out into children's clothing. The Ace board of directors is interviewing
candidates to replace the outgoing CEO. The board wants a CEO who will take Ace
into the future and pull customers back into Ace stores. Two candidates are being
interviewed for the position: Dan Elizarde and Tanya Carson. Tanya and Dan have
comparable executive experience with retail clothing companies. Therefore, the
board will be basing its final decision on visionary leadership skills.
Which of the following characteristics should the winning candidate most likely
possess if Ace executives desire a CEO with a global mind-set?
subjective ethical standards
f - ANSWER: open-minded about diversity
A car rental agency that was planning to internationalize its operations would most
likely select a(n) ________.
intermediary
licensor
distributor
franchisor - ANSWER: franchisor
In which of the following are substantial autonomy and decision making authority
delegated to a firm's subsidiaries around the world?
nationalization
transnational strategy
decentralized approach
global strategy - ANSWER: decentralized approach
Which of the following factors is typically most important to firms considering FDI
entry?
Mike, Verified Chapters 1 - 17, Complete Newest Version
Which of the following tasks should a shoe manufacturing company perform first if it
needs to assess the global market opportunity?
screen countries to identify foreign markets
assess the suitability of the company's shoes for foreign markets
choose foreign business partners
analyze the firm's readiness to internationalize - ANSWER: analyze the firm's
readiness to internationalize
Which of the following is true about global teams?
Operational global teams identify or implement initiatives that enhance the long-
term direction of the firm in its global industry.
Strategic global teams focus on the efficient and effective operation of the business
across the whole network.
To develop global strategies, the team should include culturally diverse managers
whose business activities span the globe.
It is a locally distributed group of employees charged with specific problem solving
that affects company operations at the domestic scale. - ANSWER: To develop global
strategies, the team should include culturally diverse managers whose business
activities span the globe.
Organizational culture is ________.
an organizational design in which all international activities are centralized within
one division in the firm, separate from domestic units
a reporting structure inside the firm that specifies the links between people,
functions, and processes
an approach in which a firm views international business as separate from, and
secondary to, its domestic business
the pattern of shared values, behavioral norms, systems, policies, and procedures
that employees learn and adopt - ANSWER: the pattern of shared values, behavioral
norms, systems, policies, and procedures that employees learn and adopt
,A culturally diverse team would ________.
follow country-specific ethical standards across the globe
use diverse languages for business communications across various teams across the
globe
create a global view inside the firm while remaining in touch with local realities
use local employees, for accountability, for all major company decisions - ANSWER:
create a global view inside the firm while remaining in touch with local realities
A favorable global market opportunity for a firm would most likely lead to ________.
the establishment of a production facility
the procurement of new distributors
the sale of corporate stock
a change in product packaging - ANSWER: the establishment of a production facility
Happy Pet Internationalization (Scenario)
Based in California, the Happy Pet Corporation has 45 pet supply stores across the
United States. Given the firm's success in the U.S. market, Happy Pet managers are
considering internationalizing their operations to the EU. The market research
conducted by the company identified several established pet product manufacturing
companies. Beth Schultz, the founder and CEO of Happy Pet, has expressed concerns
about expanding the firm's operations into the EU. She believes internationalizing in
the EU is not profitable because of the presence of these established competitors.
However, Edward O'Neal, the COO of Happy Pet, believes the corporation is ready
for the next step. Happy Pet executives and managers have gathered to discuss their
organization's readiness to internationalize.
Which of the following should most likely be considered in determining whether
Happy Pet is ready - ANSWER: What demands will internationalization make on
Happy Pet's financial resources?
________ refers to a cross-border business alliance whereby partnering firms pool
their resources and share costs and risks to undertake a new business venture.
International collaborative ventures
Acquisitions
, Turnkey operations
Greenfield investments - ANSWER: International collaborative ventures
CEO Hiring Interview (Scenario)
The Ace Children's Clothing Company is a mature MNE that has been manufacturing
and selling children's clothing in Ace stores around the world for 30 years. Ace has
seen a downturn in global sales recently due to trendy adult clothing companies
branching out into children's clothing. The Ace board of directors is interviewing
candidates to replace the outgoing CEO. The board wants a CEO who will take Ace
into the future and pull customers back into Ace stores. Two candidates are being
interviewed for the position: Dan Elizarde and Tanya Carson. Tanya and Dan have
comparable executive experience with retail clothing companies. Therefore, the
board will be basing its final decision on visionary leadership skills.
Which of the following characteristics should the winning candidate most likely
possess if Ace executives desire a CEO with a global mind-set?
subjective ethical standards
f - ANSWER: open-minded about diversity
A car rental agency that was planning to internationalize its operations would most
likely select a(n) ________.
intermediary
licensor
distributor
franchisor - ANSWER: franchisor
In which of the following are substantial autonomy and decision making authority
delegated to a firm's subsidiaries around the world?
nationalization
transnational strategy
decentralized approach
global strategy - ANSWER: decentralized approach
Which of the following factors is typically most important to firms considering FDI
entry?
