Reference no: EM133184726
Part 1.
1. How have changes in technology contributed to the globalization of markets and production? Would the globalization of production and markets have been possible without these technological changes?
2. How does the Internet affect international business activity and the globalization of the world economy?
3. Discuss why the culture of a country might influence the costs of doing business in that country. Illustrate your answer with country and company examples.
4. Can a company be good at corporate social responsibility but not be sustainability-oriented? Is it possible to focus on sustainability but not corporate social responsibility? Based on reading the Focus on Managerial Implications section, discuss how much CSR and sustainability are related and how much the concepts differ from each other.
5. A manager from a developing country is overseeing a multinational's operations in a country where drug trafficking and lawlessness are rife. One day, a representative of a local "big man" approaches the manager and asks for a "donation" to help the big man provide housing for the poor. The representative tells the manager that in return for the donation, the big man will make sure that the manager has a productive stay in his country. No threats are made, but the manager is well aware that the big man heads a criminal organization that is engaged in drug trafficking. He also knows that the big man does indeed help the poor in the rundown neighborhood of the city where he was born. What should the manager do?
Part 2.
1. Drawing upon the new trade theory and Porter's theory of national competitive advantage, outline the case for government policies that would build national competitive advantage in biotechnology. What kind of policies would you recommend that the government adopt? Are these policies at variance with the basic free trade philosophy?
2. In the last few decades, the auto industry has shifted from one in which a few, large companies primarily manufactured in their domestic markets and sold in their domestic markets, to one in which a few large companies serve the world market, manufacturing around the globe to capture competitive advantages wherever they can.
• Why do companies like Toyota and Nissan have large operations in the U.S. market? Why don't American companies have a large presence in Japan?
• Consider why BMW and Mercedes have established manufacturing operations in the U.S. market, while American companies are shifting their production to places like Mexico. Similarly, reflect on the new agreement between Toyota and Mazda whereby Mazda will produce cars at its plant in Mexico for Toyota to sell in the United States.
• Finally, use the theories presented in the chapter to explain the changes in the industry, and to predict what may occur in the next decade. How will the Chennai region of India, referred to as the Detroit of India because so many automakers and suppliers have established operations there, change the industry? What are the implications of Morocco's burgeoning auto industry? What will be the impact of the new trade agreement between Mexico, Canada, and the United States have on production? What are the implications of the move toward more electric vehicles by companies like Volkswagen?
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