7.FDI-based explanations of international business evolved over time. Describe the evolution of these explanations from monopolistic advantage theory, through internalization theory, to the eclectic paradigm.
.
4. Given growth rates and other characteristics of emerging markets, what markets should TAMO target for sales of Nano cars? What country-level factors should TAMO consider as it evaluates the potential of various emerging markets?
.
2. Do you believe U.S. military contracts with Boeing amount to subsidies? Have these types of payments provided Boeing with unfair advantages? Justify your answer.
.
5. Consistent with Dunning’s Eclectic Paradigm, describe the ownership-specific advantages, location-specific advantages, and internalization advantages held by Hyundai. Which of these advantages do you believe has been most instrumental to the firm’s success? Justify your answer.
.
1. What is a regional economic integration bloc (also called an economic bloc)?
2. Differentiate between a free trade area and a customs union. Differentiate between a customs unions and a common market.
.
2. What are the advantages and disadvantages of DR-CAFTA to Honduran firms? To Honduras as a nation? Should free trade be extended throughout Latin America through the proposed FTAA?
.
3. Discuss Hyundai and its position in the global car industry in terms of Porter’s Diamond Model. What is the role of demand conditions, factor conditions; related and supporting industries, and firm strategy, structure, and rivalry to Hyundai’s international success?
.
2. Most countries lack adequate laws or enforcement to deal with bribery and other forms of corruption. Why is this? How do countries benefit from a strong rule of law that minimizes corruption?
.
6.Describe the internationalization process of the firm? Review the background of major MNEs by visiting their websites. What is the nature of internationalization in these firms? What is the nature of internationalization in born-global firms?
.
3. Consult www.phrma.org, The Pharmaceutical Research and Manufacturers of America. What steps is the branded industry taking to address the various ethical issues it faces, such as providing affordable drugs to poor countries?
.
4. Some argue that because ethical standards are lax in many countries, Siemens and other firms must pay bribes in order to obtain new business. Do you agree with this view? Stated differently, when doing business around the world, is it generally better to emphasize normativism or relativism? Justify your.
3. Do you think Siemens was penalized enough for its corruption? Why or why not? What can governments or other organizations do to discourage firms and others from engaging in corrupt behavior?
.
1. Specify the types of country risks that pharmaceutical firms face in international business. How do the political and legal systems of countries affect the global pharmaceutical industry?
2. People need medications, but the poor often cannot afford them. Governments may not provide subsidies for health care and medications. Meanwhile, pharmaceutical.
4. The Korean government has been instrumental to Hyundai’s success. In terms of national industrial policy, what has the government done to support Hyundai? What can the government do to encourage future success at Hyundai? What can the government in your country to do support development or maintenance of a.
3. What is the relationship between trade barriers, bureaucracy, country risk, and the emergence of Tata as a major player in world trade? What is the role of declining government intervention in Tata’s success in India and its ability to internationalize? What should Tata do to manage country risk in.
1. Distinguish between ethics and corruption in international business.
2. What is the Corruption Perceptions Index and how can a manager use it to assess international risk?
.
2. In terms of Factor Proportions Theory, what abundant factors does Hyundai leverage in its worldwide operations? Provide examples and explain how Hyundai exemplifies the theory. In what ways does Hyundai’s success contradict the theory? Justify your answer.
.
5. Recommend a strategy that management at a large pharmaceutical firm should employ to reduce the likelihood of political and legal risks that such firms face. What steps should management take to minimize its exposure to such risks?
.
5. As it prepares to expand abroad, how can TAMO improve its corporate social responsibility toward future customers in emerging markets? What can TAMO do to minimize the impact of its operations on the natural environment in Asia and elsewhere?
.
4. Consult the TRIPS agreement at the WTO portal (www.wto.org). What are the latest developments regarding this treaty? What types of protection does this treaty provide to pharmaceutical firms? What enforcement mechanisms does TRIPS provide for ensuring that these protections will be carried out?
.
3. Assuming that Airbus cannot compete without subsidies and loans, is it likely that the EU will discontinue its financial support of Airbus? Is it in the EU’s interests to continue supporting Airbus? Justify your answer.
4. In the event the WTO rules against Airbus and tells it to stop providing.
3. Honduras is a poor country that faces job losses in its apparel sector from growing foreign competition. What can the Honduran government do to help keep jobs in Honduras? Should the government try to attract more foreign investment into Honduras? What steps could the government take to attract.
6. What is an ethical dilemma? Give an example of an ethical dilemma that MNEs encounter abroad.
7. What is corporate social responsibility (CSR)? How does it differ from general ethical behavior?
.
1. What are the roles of comparative and competitive advantages in Hyundai’s success? Illustrate your answers by providing specific examples of natural and acquired advantages that Hyundai employs to succeed in the global car industry.
.
1. China has the most comparative advantages in producing apparel. Free trade theory implies that retailers should import clothing from the most efficient country. Given this, and potential drawbacks of regional integration, would it be better to allow free trade to take its natural course? That is, should DR-CAFTA be.
2. What makes emerging markets attractive for international business? Discuss emerging markets as target markets, as platforms for manufacturing, and as sourcing destinations.
.
1. Where do you stand? Do you think EU subsidies and soft loans to Airbus are fair? Why or why not? What advantages does Airbus gain from free financial support from the EU governments? Are complaints about the EU’s government intervention fair in light of Europe’s long history of democratic.
1. Describe the various advantages that firms like Tata employ to become large industrial conglomerates. How can Tata use these same advantages to succeed in foreign markets?
.
2.What is the difference between the concepts of absolute advantage and comparative advantage?
3.Summarize factor proportions theory. What factors are most abundant in the following countries: China, Japan, Germany, Saudi Arabia, and United States? Visit globalEDGE™ for helpful information.
.
4. Russell Corporation is smaller than Adidas and Nike. What should Russell do to counter these firms? What should Russell do to counter the flood of low-cost athletic apparel now entering the United States from China? What can Russell do to ensure its future survival and success?
.
