Question: Discuss President Trump’s position on trade.

> What drove Starbucks to start expanding internationally? How is the company creating value for its shareholders by pursuing an international expansion strategy?

> Where did the original idea for the Starbucks’ format come from? What lesson for international business can be drawn from this?

> Why are African countries more likely to trade with Europe and America than they are with each other?

> In addition to its reputation for being a good partner, what other assets do you think GE brings to the table, making it an attractive joint venture partner?

> The case mentions that GE has a well-earned reputation for being a good partner. What are the likely benefits of this reputation to GE? If GE were to tarnish its reputation by, for example, opportunistically taking advantage of a partner, how might this

> What are the risks that GE must assume when it enters into a joint venture? Is there any way for GE to reduce these risks?

> Why do you think that GE has come to prefer joint ventures in recent years? Do you think that the global economic crisis of 2008-2009 might have impacted this preference in any way? If so, how?

> GE used to have a preference for acquisitions or greenfield ventures as an entry mode, rather than joint ventures. Why do you think this was the case?

> What is the source of IKEA’s success today? Can you see any weaknesses in the company? What might it do to correct these?

> What is IKEA’s strategy toward its suppliers? How important is this strategy to IKEA’s success?

> How would you characterize IKEA’s strategy prior to its missteps in North America? How would you characterize its strategy today?

> Many of Russian oil giant Gazprom’s strategic alliances are with companies in foreign countries. Do you see any disadvantages to these companies of partnering with a government-owned Russian company?

> Some 80 percent of Woolworths’ suppliers have partnered with the organization for more than a decade. Discuss the importance of relationships like to Woolworths’ competitive advantage. How can firms encourage this type of loyalty?

> Was terminating the Japanese licensing agreement and opening wholly-owned stores the correct strategic move for Burberry? What are the risks here?

> Woolworths Group has interests across multiple industry sectors and across multiple countries. Rather than following norms of corporate behavior in each market, Woolworths has chosen to set its own initiatives to follow in each market. What can other fir

> Discuss social responsibility at Woolworths. What makes the People, Planet, and Prosperity framework so appealing to the company?

> With 400 brands and a presence in countries around the world, Unilever is a complex organization. How can the company minimize duplication of effort across its product lines and divisions?

> Consider organizational culture at Unilever. Given its dual-nationality along with its size, what norms and values would be important to the company?

> Unilever owns 400 brands, but counts just 13 as being the core of its business. Based on this information, what type decision making strategy would you expect Unilever to follow and why?

> Sony is currently exploring opportunities in a variety of new areas including Life Space UX, Sports Entertainment, and Sony Computer Science Laboratories. Discuss the importance of being a leader in innovation and why Sony pursues these new strategic ini

> Sony has organized itself into 12 distinct core business segments. How does the company integrate these segments to create a meaningful overall strategy? What is the advantage of incorporating an integrating mechanism instead of letting the core business

> How would you describe Sony’s strategy? What give the company an edge over its rivals?

> How does the geographic location of Swatch’s headquarters impact the company and its product line?

> What were the causes of the surge in inflation in Russia during the early 1990s? Could this have been avoided? How?

> What limitations of the licensing strategy became apparent over time? Should Burberry have expected these drawbacks to arise?

> In late 1997, the IMF stepped in with a rescue package that included $55 billion in emergency loans to support the currency. These loans had the effect of stabilizing the won and over the next few years South Korea enjoyed a strong recovery. If the IMF h

> Why was the Korean central bank unable to stop the decline in the value of the won?

> What role did Korean enterprises play in creating the 1997 crisis?

> What role did the Korean government play in creating the 1997 crisis?

> Discuss accounting regulations and Saudi Aramco. Do you see any issues related to Saudi Aramco’s state ownership? How might things change for Saudi Aramco if it sells its shares on the NYSE?

> What are the benefits of listing Saudi Aramco on a larger exchange like the NYSE rather than the local exchange?

> Do you own a Swatch? What attracted you to the watch you chose? Discuss the appeal of Swatch. How has the company managed to bridge age, gender, national, and other differences?

> How has Swatch capitalized on cultural diversity in its product line?

> Explain the difference between transaction exposure and translation exposure using the material in the Caterpillar case to illustrate your answer.

> How did Caterpillar use strategy as a “real hedge” to reduce its exposure to foreign exchange risk? What is the downside of its approach?

> Who is harmed by this action? Who might benefit?

> In the 1980s a stronger dollar hurt Caterpillar’s competitive position, but in 2008 a stronger dollar did not seem to have the same effect. What had changed?

> In the early 2000s Russia cut tax rates for individuals and corporations, and government tax revenues surged. Why? Does this result suggest that the IMF policy prescriptions were wrong?

> During the mid-1990s, the IMF wanted Russia to raise tax rates, close loopholes in the tax system, and cut public spending. Russia was unable to do this. Why?

> Why has the government of Saudi Arabia decided to sell shares of Saudi Aramco? What benefits does the decision offer the country?

> Discuss the IMF’s approach to shore up Egypt’s economy via austerity measures. What are the expected effects of such measures? Are they likely to lead to economic growth?

> How did the IMF help Egypt? What impact did it have on the country’s economy and prospects for future growth?

> What is the role of the IMF in the global economy? Why was it important for the IMF to step in to help Egypt?

> What should Nintendo do now? How should the company react to the continued pressure on the peso?

> Following the election of Donald Trump, the value of the Mexican peso has fallen relative to the U.S. dollar. Why do you think this happened? What do you expect will happen to the dollar/peso relationship going forward?

> Why is it so important for managers to understand how the foreign exchange market works? What is the role of the U.S. dollar in the relationship between the yen and the peso?

> Absent of any response from other nations, how long can China pursue this policy?

> Donald Trump won the 2016 presidential election with promises to bring back blue-collar jobs in manufacturing and coal. Reflect on job losses in these areas. Is trade the only reason or even the main reason for these job losses? Are there other factors t

> For the last 70 years, the United States has been a global economic and political leader working with countries to open borders and promote foreign investment. Trump has promised a more isolationist, America-first administration. If America turns inward,

> As CEO of an auto company with manufacturing facilities in Mexico, what do Trump’s promises on NAFTA mean to you?

> As an American consumer looking for a new car, what does NAFTA mean to you? Does your response change if you are a consumer from Mexico or Canada?

> Discuss NAFTA in the Trump era. What changes in the agreement would he like to see?

> As part of its loosening of regulations for foreign companies, India allows 100 percent ownership of online retail marketplaces. Why do you think these are permitted, while traditional retailers still face restrictions?

> For years, India prevented foreign retailers from developing a presence in the country. In 2012, regulations were changed to allow foreign retailers to enter the market as long as they sourced 30 percent of their inventory locally. IKEA made the decision

> What benefits could foreign retailers like Tesco and IKEA bring to India? Do you see any drawbacks?

> Boeing is expected to benefit from some $5.7 billion in tax breaks from the state of Washington. Why is the state of Washington willing to provide these tax breaks to Boeing?

> Does the evidence suggest to you that China is dumping excess steel production on world markets?

> What is the role of customer satisfaction in Shoprite’s financial management strategy?

> In its early years, Airbus received subsidies for 100 percent of its development costs. Discuss this situation. Is there a time when subsidies should be considered acceptable? Why or why not?

> According to WTO rulings, both Airbus and Boeing have been recipients of government assistance at one point or another. Discuss the nature of aircraft manufacturing and why subsidies are seemingly part of the industry practice.

> A democratic political system is an essential condition for sustained economic progress. Discuss.

> Free market economies stimulate greater economic growth, whereas state-directed economies stifle growth. Discuss.

> Read the Management Focus feature titled Did Walmart Violate the Foreign Corrupt Practices Act? What is your opinion? If you think it did, what do you think the consequences will be for Walmart?

> You are the CEO of a company that has to choose between making a $100 million investment in Russia or Poland. Both investments promise the same long-run return, so your choice is driven by risk considerations. Assess the various risks of doing business i

> What is the relationship between corruption in a country (i.e., bribe-taking by government officials) and economic growth? Is corruption always bad?

> Vietnam now has an economy that is growing strongly with low unemployment and rising living standards. What changes in economic policy have been responsible for this economic transformation?

> Why did Vietnam experience a low economic growth rate in the decade after the end of the Vietnam War in 1976?

> How do you think a shift toward more democratic institutions will affect economic progress in Vietnam?

> Can you think of any unintended consequences that might occur as the result of the imposition of antidumping duties on Chinese steel imports by the United States and the EU?

> The level of public corruption in Vietnam is high. Why is this the case? How do you think this affects Vietnam’s economic performance? What should the government do about this?

> Describe the shifts in the world economy over the last 30 years. What are the implications of these shifts for international businesses based in Great Britain? North America? Hong Kong?

> If a firm is changing its strategy from an international to a transnational strategy, what are the most important challenges it is likely to face in implementing this change? How can the firm overcome these challenges?

> What is the most appropriate organizational architecture for a firm that is competing in an industry where a global strategy is most appropriate?

> Describe the organizational architecture a transnational firm might adopt to reduce the costs of control.

> Discuss this statement: “An understanding of the causes and consequences of performance ambiguity is central to the issue of organizational design in multinational firms.”

> 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 section on Implications for Business Practice, discuss ho

> Milton Friedman stated in his famous article in the New York Times in 1970 that “the social responsibility of business is to increase profits.” Do you agree? If not, do you prefer that multinational corporations adopt a focus on corporate social responsi

> 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 m

> Do you think facilitating payments (speed payments) should be ethical? Does it matter in which country, or part of the world, such payments are made?

> Are the EU and the United States correct to impose significant antidumping duties on imports of Chinese steel? What will the benefits of such policy be? Are there any drawbacks?

> Under what conditions is it ethically defensible to outsource production to the developing world where labor costs are lower when such actions also involve laying off long-term employees in the firm’s home country?

> Drawing upon John Rawls’s concept of the veil of ignorance, develop an ethical code that will (a) guide the decisions of a large oil multinational toward environmental protection, and (b) influence the policies of a clothing company in the potential deci

> The choice of strategy for a multinational firm must depend on a comparison of the benefits of that strategy (in terms of value creation) with the costs of implementing that strategy (as defined by organizational architecture necessary for implementation

> What do you see as the main organizational problems that are likely to be associated with implementation of a transnational strategy?

> Reread the Management Focus on Procter & Gamble, and then answer the following questions: a. What strategy was Procter & Gamble pursuing when it first entered foreign markets in the period up until the early 1980s? b. Why do you think this strategy becam

> In what kind of industries does a localization strategy make sense? When does a global standardization strategy make most sense?

> Plot the position of the following firms on Figure 13.6: Procter & Gamble, IBM, Apple, Coca Cola, Dow Chemical, Intel, and McDonald’s. In each case justify your answer.

> In a world of zero transportation costs, no trade barriers, and significant differences between nations with regard to factor conditions, firms must expand internationally if they are to survive. Discuss.

> Reread the Country Focus on Secularism in Turkey, then answer the following questions: a. Can you see anything in the values and norms of Islam that is hostile to business? b. What does the experience of the region around Kayseri teach about the relation

> Choose two countries that appear to be culturally diverse. Compare the culture of those countries and then indicate how cultural differences influence (a) the costs of doing business in each country, (b) the likely future economic development of that cou

> What alternative policy might China pursue? What are the costs and benefits of this alternative policy to China?

> Do you think that business practices in an Islamic country are likely to differ from business practices in a Christian country? If so how?

> Outline why the culture of a country might influence the cost of doing business in that country. Illustrate your answer with examples.

> Reread the Management Focus on China and Its Guanxi, then answer the following questions a. Why do you think that it is so important to cultivate guanxi and guanxiwang in China? b. What does the experience of DMG tell us about the way things work in Chin

> Happy Company wants to raise $2 million with debt financing. The funds are needed to finance working capital, and the firm will repay them with interest in one year. Happy Company’s treasurer is considering three options: a. Borrowing U.S. dollars from S

> A firm based in Mexico has found that its growth is restricted by the limited liquidity of the Mexican capital market. List the firm’s options for raising money on the global capital market. Discuss the pros and cons of each option, and make a recommenda

> In 2008‒2009, the world economy retrenched in the wake of a global financial crisis. Did the globalization of capital markets contribute to this crisis? If so, what can be done to stop global financial contagion in the future?

> Why has the global capital market grown so rapidly in recent decades? Do you think this growth will continue throughout the next decade? Why?

> Reread the Country Focus on the U.S. dollar, oil prices, and recycling petrodollars, then answer the following questions: a. What will happen to the value of the U.S. dollar if oil producers decide to invest most of their earnings from oil sales in domes

> Imagine that Canada, the United States, and Mexico decide to adopt a fixed exchange rate system. What would be the likely consequences of such a system for (a) international businesses, and (b) the flow of trade and investment among the three countries?