International Business Final Essay Exam
Answer each question thoroughly. The essay questions should minimally be 1.25 single-spaced pages each. Incorporate references from text, class notes, and online discussions wherever possible. Unless otherwise indicated, questions have a 10 point value.
Today we take for granted the globalization of markets and the factors of production. Macro factors contributing to this shift include: development of the third world countries; fall of communism; decline in trade and investment barriers; and advances in technology and transportation. Discuss each of these and provide specific examples to illustrate your points. What are the implications of these shifts for multinational businesses based in the US? If you were born outside the US, you are welcomed to respond instead to the implications for businesses in your home country.
International offshoring (outsourcing) is a trend in business today. First, develop an overview / introduction to the topic (major issues, risks/benefits, reasons for outsourcing, risks/benefits, criteria for site selection) and the industry, focusing on US outsourcing to India and/or China. Discuss the issue from both a “pro” and a “con” perspective. What do you think about this issue? And, if you were running for President of the US today, what would you recommend as strategies to address this contentious issue?
Your company creates software for the manufacturing industry. The CEO of your firm is considering making a $100M investment in China. She has asked you to assess the risks of going forward with this venture. Prepare a China-specific risk assessment (political, economic, legal, socio-cultural) of doing this type of business in China and your recommendations for expansion.
Describe the five levels of economic integration and give at least one example of a country(ies) trading at that level (5 pts.).
Firms use two basic strategies to compete in the international environment: international/global and multi-domestic. Define/differentiate among these strategies. For each strategy, give an example of a company operating according to this model and justify why it makes sense for them to do so (5 pts.).
Using the US and another culturally-diverse country (choose your home country if you were born outside US), compare the cultures of the countries using the Hofstede cultural dimensions. Indicate how cultural differences influence doing business in/with each country with respect to: a) the risks of doing business in that country; c) communication or business etiquette practices; and d) business ethics.