International Business: Competing in the Global Marketplace
12th Edition
ISBN: 9781259929441
Author: Charles W. L. Hill Dr, G. Tomas M. Hult
Publisher: McGraw-Hill Education
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Chapter 13, Problem 1CTD
Summary Introduction
To Discuss: The reasons on zero transportation costs, no trade barriers and significant similarities among countries with regard to factor conditions firms should increase internationally in order to survive.
Introduction: Transportation costs are the costs caused by a worker or independently employed taxpayers when far from home in a transportable status for business. Transportation costs are a subdivision of transportable costs, which are generally costs, related with business travel, for example, taxi charges, gasoline, parking expenses, phone charges that representatives may acquire and guarantee for repayment.
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Explain the two opposing forces—cost reduction and adaptation to local markets—that firms must deal with when they go global and explain the four basic strategies that may be used in relation to the pressure from each of the opposing forces
Specifically, this insert begins with the conjecture that at this juncture, opinions differ on the future of IB and globalization, but that three scenarios predominate, specifically:
Further globalization is inevitable.
IB will grow primarily along regional rather than global lines.
Powerful forces opposing further globalization and IB will slow their growth.
Against this backdrop, some observers feel that people who work for international institutions, such as the World Bank or WTO, cannot adequately manage the complexities of an interconnected world.
Based on this, one can reasonably conclude that these observers they anticipate that ________.
A) globalization will slow in the future
B) international business will grow primarily on a regional basis
C) private companies will replace international organizations in running the world's economy.
D) globalization is inarguably inevitable
The suggestion is that worldwide industries were transformed in the 1980s and 1990s from traditional multinational, international, and global firms into transnational firms. Explain why this was necessary and whether the intended purpose was achieved? You are required to address the special features and attributes of a typical transnational firm?
Chapter 13 Solutions
International Business: Competing in the Global Marketplace
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- Suppose DAK Corporation plans to open its factories in Brazil, where culture and socio-economic context isdramatically different from other countries. Critically examine the strategic options you will adopt as a Global StrategyHead of DAK Corporation if Brazil is considered as a Turbulent and High Velocity Market. Your answer should includeelaborate analysis of the moves DAK corporation needs to follow in order to succeed in such marketsarrow_forwardJanet has to make decisions as it relates to producing goods for sale in the international market. She has decided to use foreign suppliers and assemble the components at the parent company. The production strategy being utilized is _______________________ 2. All of the following are important to global managers except: a. The ability to network across borders b. Experience working in a foreign country c. Money d. Knowledge of your job role effectively 3. Reasons for international trade include all except: a. Increasing returns to scale b. No difference in the capital stock c. Differences in technology d. Difference in demandarrow_forwardYou are the CEO of Elegant Electronix and you are contemplating expanding in Japan .You have all the resources to start from scratch in that country .Discuss the many advantages to initiating , continuing and or expanding international operations. outline disadvantages alsoarrow_forward
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