Solution Manual for Global Business, 5th Edition by Peng Mike,
b b b b b b b b b b
Whichbofbthebfollowingbtasksbshouldbabshoebmanufacturingbcompanybperformbfirstbifbitb
needsbtobassessbthebglobalbmarketbopportunity?
screenbcountriesbtobidentifybforeignbmarkets
assessbthebsuitabilitybofbthebcompany'sbshoesbforbforeignbmarkets
choosebforeignbbusinessbpartners
analyzebthebfirm'sbreadinessbtobinternationalizeb-
bANSWER:banalyzebthebfirm'sbreadinessbtobinternationalize
Whichbofbthebfollowingbisbtruebaboutbglobalbteams?
Operationalbglobalbteamsbidentifyborbimplementbinitiativesbthatbenhancebtheblong-
termbdirectionbofbthebfirmbinbitsbglobalbindustry.
Strategicbglobalbteamsbfocusbonbthebefficientbandbeffectiveboperationbofbthebbusinessba
crossbthebwholebnetwork.
Tobdevelopbglobalbstrategies,bthebteambshouldbincludebculturallybdiversebmanagersbw
b
hosebbusinessbactivitiesbspanbthebglobe.
Itbisbablocallybdistributedbgroupbofbemployeesbchargedbwithbspecificbproblembsolvingbth
atbaffectsbcompanyboperationsbatbthebdomesticbscale.b-
bANSWER:bTobdevelopbglobalbstrategies,bthebteambshouldbincludebculturallybdiversebma
nagersbwhosebbusinessbactivitiesbspanbthebglobe.
Organizationalbculturebisb________.
anborganizationalbdesignbinbwhichballbinternationalbactivitiesbarebcentralizedbwithinbon
ebdivisionbinbthebfirm,bseparatebfrombdomesticbunits
abreportingbstructurebinsidebthebfirmbthatbspecifiesbtheblinksbbetweenbpeople,bfunction
s,bandbprocesses
anbapproachbinbwhichbabfirmbviewsbinternationalbbusinessbasbseparatebfrom,bandbsecon
darybto,bitsbdomesticbbusiness
thebpatternbofbsharedbvalues,bbehavioralbnorms,bsystems,bpolicies,bandbproceduresbth
atbemployeesblearnbandbadoptb-
bANSWER:bthebpatternbofbsharedbvalues,bbehavioralbnorms,bsystems,bpolicies,bandbpro
ceduresbthatbemployeesblearnbandbadopt
,Abculturallybdiversebteambwouldb________.
followbcountry-specificbethicalbstandardsbacrossbthebglobe
usebdiverseblanguagesbforbbusinessbcommunicationsbacrossbvariousbteamsbacrossbtheb
globe
createbabglobalbviewbinsidebthebfirmbwhilebremainingbinbtouchbwithblocalbrealities
useblocalbemployees,bforbaccountability,bforballbmajorbcompanybdecisionsb-
bANSWER:bcreatebabglobalbviewbinsidebthebfirmbwhilebremainingbinbtouchbwithblocalbrea
lities
Abfavorablebglobalbmarketbopportunitybforbabfirmbwouldbmostblikelybleadbtob________.
thebestablishmentbofbabproductionbfacility
thebprocurementbofbnewbdistributors
thebsalebofbcorporatebstock
abchangebinbproductbpackagingb-bANSWER:bthebestablishmentbofbabproductionbfacility
HappybPetbInternationalizationb(Scenario)
BasedbinbCalifornia,bthebHappybPetbCorporationbhasb45bpetbsupplybstoresbacrossbthebUn
itedbStates.bGivenbthebfirm'sbsuccessbinbthebU.S.bmarket,bHappybPetbmanagersbarebcons
ideringbinternationalizingbtheirboperationsbtobthebEU.bThebmarketbresearchbconductedb
bybthebcompanybidentifiedbseveralbestablishedbpetbproductbmanufacturingbcompanies
.bBethbSchultz,bthebfounderbandbCEObofbHappybPet,bhasbexpressedbconcernsbaboutbexp
andingbthebfirm'sboperationsbintobthebEU.bShebbelievesbinternationalizingbinbthebEUbisbn
otbprofitablebbecausebofbthebpresencebofbthesebestablishedbcompetitors.bHowever,bEd
wardbO'Neal,bthebCOObofbHappybPet,bbelievesbthebcorporationbisbreadybforbthebnextbste
p.bHappybPetbexecutivesbandbmanagersbhavebgatheredbtobdiscussbtheirborganization'sbr
eadinessbtobinternationalize.
WhichbofbthebfollowingbshouldbmostblikelybbebconsideredbinbdeterminingbwhetherbHap
pybPetbisbreadyb-
bANSWER:bWhatbdemandsbwillbinternationalizationbmakebonbHappybPet'sbfinancialbres
ources?
________brefersbtobabcross-
borderbbusinessballiancebwherebybpartneringbfirmsbpoolbtheirbresourcesbandbsharebcos
tsbandbrisksbtobundertakebabnewbbusinessbventure.
Internationalbcollaborativebventures
, Acquisitions
Turnkeyboperations
Greenfieldbinvestmentsb-bANSWER:bInternationalbcollaborativebventures
CEObHiringbInterviewb(Scenario)
ThebAcebChildren'sbClothingbCompanybisbabmaturebMNEbthatbhasbbeenbmanufacturingb
andbsellingbchildren'sbclothingbinbAcebstoresbaroundbthebworldbforb30byears.bAcebhasbse
enbabdownturnbinbglobalbsalesbrecentlybduebtobtrendybadultbclothingbcompaniesbbranch
ingboutbintobchildren'sbclothing.bThebAcebboardbofbdirectorsbisbinterviewingbcandidatesb
tobreplacebtheboutgoingbCEO.bThebboardbwantsbabCEObwhobwillbtakebAcebintobthebfutur
ebandbpullbcustomersbbackbintobAcebstores.bTwobcandidatesbarebbeingbinterviewedbforb
thebposition:bDanbElizardebandbTanyabCarson.bTanyabandbDanbhavebcomparablebexecut
ivebexperiencebwithbretailbclothingbcompanies.bTherefore,bthebboardbwillbbebbasingbitsb
finalbdecisionbonbvisionarybleadershipbskills.
Whichbofbthebfollowingbcharacteristicsbshouldbthebwinningbcandidatebmostblikelybposse
ssbifbAcebexecutivesbdesirebabCEObwithbabglobalbmind-set?
subjectivebethicalbstandards
fb-bANSWER:bopen-mindedbaboutbdiversity
Abcarbrentalbagencybthatbwasbplanningbtobinternationalizebitsboperationsbwouldbmostbli
kelybselectba(n)b________.
intermediary
licensor
distributor
franchisorb-bANSWER:bfranchisor
Inbwhichbofbthebfollowingbarebsubstantialbautonomybandbdecisionbmakingbauthoritybdel
egatedbtobabfirm'sbsubsidiariesbaroundbthebworld?
nationalization
transnationalbstrategy
decentralizedbapproach
globalbstrategyb-bANSWER:bdecentralizedbapproach
b b b b b b b b b b
Whichbofbthebfollowingbtasksbshouldbabshoebmanufacturingbcompanybperformbfirstbifbitb
needsbtobassessbthebglobalbmarketbopportunity?
screenbcountriesbtobidentifybforeignbmarkets
assessbthebsuitabilitybofbthebcompany'sbshoesbforbforeignbmarkets
choosebforeignbbusinessbpartners
analyzebthebfirm'sbreadinessbtobinternationalizeb-
bANSWER:banalyzebthebfirm'sbreadinessbtobinternationalize
Whichbofbthebfollowingbisbtruebaboutbglobalbteams?
Operationalbglobalbteamsbidentifyborbimplementbinitiativesbthatbenhancebtheblong-
termbdirectionbofbthebfirmbinbitsbglobalbindustry.
Strategicbglobalbteamsbfocusbonbthebefficientbandbeffectiveboperationbofbthebbusinessba
crossbthebwholebnetwork.
Tobdevelopbglobalbstrategies,bthebteambshouldbincludebculturallybdiversebmanagersbw
b
hosebbusinessbactivitiesbspanbthebglobe.
Itbisbablocallybdistributedbgroupbofbemployeesbchargedbwithbspecificbproblembsolvingbth
atbaffectsbcompanyboperationsbatbthebdomesticbscale.b-
bANSWER:bTobdevelopbglobalbstrategies,bthebteambshouldbincludebculturallybdiversebma
nagersbwhosebbusinessbactivitiesbspanbthebglobe.
Organizationalbculturebisb________.
anborganizationalbdesignbinbwhichballbinternationalbactivitiesbarebcentralizedbwithinbon
ebdivisionbinbthebfirm,bseparatebfrombdomesticbunits
abreportingbstructurebinsidebthebfirmbthatbspecifiesbtheblinksbbetweenbpeople,bfunction
s,bandbprocesses
anbapproachbinbwhichbabfirmbviewsbinternationalbbusinessbasbseparatebfrom,bandbsecon
darybto,bitsbdomesticbbusiness
thebpatternbofbsharedbvalues,bbehavioralbnorms,bsystems,bpolicies,bandbproceduresbth
atbemployeesblearnbandbadoptb-
bANSWER:bthebpatternbofbsharedbvalues,bbehavioralbnorms,bsystems,bpolicies,bandbpro
ceduresbthatbemployeesblearnbandbadopt
,Abculturallybdiversebteambwouldb________.
followbcountry-specificbethicalbstandardsbacrossbthebglobe
usebdiverseblanguagesbforbbusinessbcommunicationsbacrossbvariousbteamsbacrossbtheb
globe
createbabglobalbviewbinsidebthebfirmbwhilebremainingbinbtouchbwithblocalbrealities
useblocalbemployees,bforbaccountability,bforballbmajorbcompanybdecisionsb-
bANSWER:bcreatebabglobalbviewbinsidebthebfirmbwhilebremainingbinbtouchbwithblocalbrea
lities
Abfavorablebglobalbmarketbopportunitybforbabfirmbwouldbmostblikelybleadbtob________.
thebestablishmentbofbabproductionbfacility
thebprocurementbofbnewbdistributors
thebsalebofbcorporatebstock
abchangebinbproductbpackagingb-bANSWER:bthebestablishmentbofbabproductionbfacility
HappybPetbInternationalizationb(Scenario)
BasedbinbCalifornia,bthebHappybPetbCorporationbhasb45bpetbsupplybstoresbacrossbthebUn
itedbStates.bGivenbthebfirm'sbsuccessbinbthebU.S.bmarket,bHappybPetbmanagersbarebcons
ideringbinternationalizingbtheirboperationsbtobthebEU.bThebmarketbresearchbconductedb
bybthebcompanybidentifiedbseveralbestablishedbpetbproductbmanufacturingbcompanies
.bBethbSchultz,bthebfounderbandbCEObofbHappybPet,bhasbexpressedbconcernsbaboutbexp
andingbthebfirm'sboperationsbintobthebEU.bShebbelievesbinternationalizingbinbthebEUbisbn
otbprofitablebbecausebofbthebpresencebofbthesebestablishedbcompetitors.bHowever,bEd
wardbO'Neal,bthebCOObofbHappybPet,bbelievesbthebcorporationbisbreadybforbthebnextbste
p.bHappybPetbexecutivesbandbmanagersbhavebgatheredbtobdiscussbtheirborganization'sbr
eadinessbtobinternationalize.
WhichbofbthebfollowingbshouldbmostblikelybbebconsideredbinbdeterminingbwhetherbHap
pybPetbisbreadyb-
bANSWER:bWhatbdemandsbwillbinternationalizationbmakebonbHappybPet'sbfinancialbres
ources?
________brefersbtobabcross-
borderbbusinessballiancebwherebybpartneringbfirmsbpoolbtheirbresourcesbandbsharebcos
tsbandbrisksbtobundertakebabnewbbusinessbventure.
Internationalbcollaborativebventures
, Acquisitions
Turnkeyboperations
Greenfieldbinvestmentsb-bANSWER:bInternationalbcollaborativebventures
CEObHiringbInterviewb(Scenario)
ThebAcebChildren'sbClothingbCompanybisbabmaturebMNEbthatbhasbbeenbmanufacturingb
andbsellingbchildren'sbclothingbinbAcebstoresbaroundbthebworldbforb30byears.bAcebhasbse
enbabdownturnbinbglobalbsalesbrecentlybduebtobtrendybadultbclothingbcompaniesbbranch
ingboutbintobchildren'sbclothing.bThebAcebboardbofbdirectorsbisbinterviewingbcandidatesb
tobreplacebtheboutgoingbCEO.bThebboardbwantsbabCEObwhobwillbtakebAcebintobthebfutur
ebandbpullbcustomersbbackbintobAcebstores.bTwobcandidatesbarebbeingbinterviewedbforb
thebposition:bDanbElizardebandbTanyabCarson.bTanyabandbDanbhavebcomparablebexecut
ivebexperiencebwithbretailbclothingbcompanies.bTherefore,bthebboardbwillbbebbasingbitsb
finalbdecisionbonbvisionarybleadershipbskills.
Whichbofbthebfollowingbcharacteristicsbshouldbthebwinningbcandidatebmostblikelybposse
ssbifbAcebexecutivesbdesirebabCEObwithbabglobalbmind-set?
subjectivebethicalbstandards
fb-bANSWER:bopen-mindedbaboutbdiversity
Abcarbrentalbagencybthatbwasbplanningbtobinternationalizebitsboperationsbwouldbmostbli
kelybselectba(n)b________.
intermediary
licensor
distributor
franchisorb-bANSWER:bfranchisor
Inbwhichbofbthebfollowingbarebsubstantialbautonomybandbdecisionbmakingbauthoritybdel
egatedbtobabfirm'sbsubsidiariesbaroundbthebworld?
nationalization
transnationalbstrategy
decentralizedbapproach
globalbstrategyb-bANSWER:bdecentralizedbapproach
