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CHAPTER 11 • GLOBAL/INTERNATIONAL ISSUES 341

Issues for Review and Discussion

1. Explain why consumption patterns are becoming similar worldwide. What are the strategic
implications of this trend?
2. What are the advantages and disadvantages of beginning export operations in a foreign
country?
3. What are the major differences between U.S. and multinational operations that affect
strategic management?
4. Why is globalization of industries a common factor today?
5. Compare and contrast U.S. versus foreign cultures in terms of doing business.
6. List six reasons that strategic management is more complex in a multinational firm.
7. Do you feel that protectionism is good or bad for the world economy? Why?
8. Why are some industries more “global” than others? Discuss.
9. Wa, guanxi, and inhwa are important management terms in Japan, China, and South Korea,
respectively. What would be analogous terms to describe American management practices?
10. Why do many Europeans find the notion of “team spirit” in a work environment difficult
to grasp?
11. In China, feng shui is important in business, whereas in Japan, nemaswashio is important.
What are analogous American terms and practices?
12. Describe the business culture in Mexico.
13. Describe the business culture in Japan.
14. Compare tax rates in the United States versus other countries. What impact could these
differences have on “keeping jobs at home”?
15. Discuss requirements for doing business in India.

Notes

1. John Miller, “WTO Predicts Global Trade Will Slide 8. Marcus Walker, “Europe Competes for Investment with
9% This Year,” Wall Street Journal (March 24, Lower Corporate Tax Rates,” Wall Street Journal (April 17,
2009): A8. 2007): A12.
2. Frederick Gluck, “Global Competition in the 1990s,” 9. Eric Bellman and P. R. Venkat, “India’s Growth Raises
Journal of Business Strategy (Spring 1983): 22–24. Fears Rates May Rise,” Wall Street Journal (February 8,
3. David Lynch, “U.S. Complains to WTO on China,” USA 2007): A6; Dionne Searcey, “Verizon Targets Business in
Today (April 10, 2007): B1. India,” Wall Street Journal (February 6, 2007): A7; Peter
4. Jon Alston, “Wa, Guanxi, and Inhwa: Managerial Wonacott, “India Faces Dark Side of Its Boom,” Wall
Principles in Japan, China and Korea,” Business Horizons Street Journal (February 27, 2007): A10; Amy Chozick,
32, no. 2 (March–April 1989): 26. “Nissan Enters Venture to Build Indian Plant,” Wall Street
5. Rose Knotts, “Cross-Cultural Management: Journal (February 27, 2007): A4; Cassell Bryan and Eric
Transformations and Adaptations,” Business Horizons Bellman, “Vodafone, Reliance Gear Up for Battle in
(January–February 1989): 29–33. India,” Wall Street Journal (December 22, 2006): B4; Peter
6. Lalita Khosla, “You Say Tomato,” Forbes (May 21, Wonacott and Eric Bellman, “Foreign Firms Find Rough
2001): 36. Passage to India,” Wall Street Journal (February 1, 2007):
7. Stratford Sherman, “How to Beat the Japanese,” Fortune A6; Binny Sabharwal, “Hilton Expands in India as Market
(April 10, 1989): 145. Demand Soars,” Wall Street Journal (May 10, 2007): D6.

Current Readings

Brouthers, Keith D., Lance Eliot Brouthers, and Steve Werner. Desia, Mihir, A. “The Finance Function in a Global Corporation.”
“Resource-Based Advantages in an International Context.” Harvard Business Review (July–August 2008): 108.
Journal of Management 34, no. 2 (April 2008): 189. Feinberg, Susan, and Anil Gupta. “MNC Subsidiaries and
Brown, John Seely, Lang Davison, and John Hagel III. “Shaping County Risk: Internalization as a Safeguard Against Weak
Strategy in a World of Constant Disruption.” Harvard External Institutions.” Academy of Management Journal
Business Review (October 2008): 80. (April 2009): 381–399.
Butter, Den, A. G. Frank, and Kees A. Linse. “How Procurement Hitt, Michael A., and Xiaoming He. “Firm Strategies in a
Informs Strategy in the Era of Globalization.” MIT Sloan Changing Global Competitive Landscape.” Business
Management Review 50, no. 1 (Fall 2008): 76. Horizons 51, no. 5 (September–October 2008): 363.