Global Business Strategies In Tutorial Library

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TITLE: Global Business Strategies

CLASS / COURSE: International Business


1.               Describe the two major drivers to globalization and two examples of ‘reasons to go global’. (Please note that the drivers of globalization not the same as the ‘reasons to go global.’) (0.5 points for each correct answer, total = 2)


2.         What are two disadvantages of using a wholly owned subsidiary mode of entry when entering a foreign market? (1 point for each correct answer, total =2)


3. Pick the correct answer from the choices below. (0.5 points)


The ______ exchange rate is the rate at which a dealer converts currency on a particular day


a)     Forward

b)     Speculative

c)      Fair

d)     Spot


4. Pick the correct answer from the choices below. (0.5 points)


_____are the costs of exchange


a) Transfer fees

b) Transaction costs

c) Fronting Loans

d) Taxes

e) Royalties


5. The cost of capital in the global capital market is generally higher than the cost of capital in domestic markets? (0.5 points)


True or False? _____________________________



6. Expatriate failure is the premature return of an expatriate manager to his or her home country.  Expatriate failures impact the company, as do near-failures. (0.5 points)


True or False? _____________________________



 7. Describe one reason why a firm would want to use a localization strategy?

 Describe one reason why a firm would want to use an international strategy? (2 points total)


 8. What are three distinct examples of countertrade?  (1 point)


9. Which organization structure best supports international horizontal differentiation? (0.5 points)


a) Functional

b) Hybrid

c) Informal Matrix

d) Geographical

e) Worldwide product division




10. Why would a firm want to implement a geocentric staffing policy? Describe a real world example of a company you think employs a geocentric staffing policy and tell me why you think it does so? (1.5 points)






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