ITM - Tutorial Unit 4 - Global Environment - STUDENT Revised

UNIVERSITY OF TECHNOLOGY, JAMAICA
SCHOOL OF BUSINESS ADMINISTRATION
MODULE NAME: INTRODUCTION TO MANAGEMENT (MAN1006)

PRINCIPLES OF MANAGEMENT (MAN1001)
Unit 4 – Managing in the Global Environment
Review Questions
1. In your own words, explain the term “borderless”. If large companies are “stateless”,
what is the impetus for a company to choose becoming global?
 Borderless means limitless or unconfined

2. Define the terms internationalization and international management. Identify and

describe the unique characteristics of each stage of globalization.
 INTERNATIONALIZATION is a corporate strategy that involves making products
and services as adaptable as possible so they can easily enter international markets.
 International management is the global management of business operations.
Stages of globalization
 The domestic stage is where the market potential is limited to the home country, all
facilities are at home base
 The international stage is where the company adopts a multi domestic approach to
operations, which means that each country independently handles competition
 The multinational stage is where companies operate from multiple countries,
focusing on delivering a similar product to multiple countries. These companies
usually have more than a third of their sales being international
 The global or stateless stage is where international development transcends any
single home country
3. Define Multinational Corporation. Identify two multinational companies operating in

Jamaica – one manufacturing and one service. In what other countries do they do business?
4. Identify two Jamaican companies that are multi-national. What are their characteristics?
Would you describe them as being successful? Why do you say so?
5. Explain the various market entry strategies that are available to managers wishing to do
business internationally or globally. What are their advantages and disadvantages?
6. Identify two Jamaican companies that are doing business overseas. How long have they
been overseas? Why do you think they chose to do business in those specific countries?
What market entry strategy did they use? Why do you think they chose that particular
strategy?
7. What are the three key dimensions in the international environment that international
firms face? Identify the factors within each. Explain each in relation to the Jamaican
environment.
1 Revised Aug. 2018 - CH

True or False
1. __F___ The reality of today's borderless companies also means that consumers can easily
identify from which country they are buying.
2. _F___ ABC Manufacturing is in the domestic stage. It has its market potential open to
the countries that border its home country.
3. __T___ Whether a company operates domestically or internationally, the management

functions of planning, organizing, leading, and controlling are the same.
4. __T___ The belief in the right to vote, the right of choice and equal rights is part of the
beliefs, values and ways of thinking that defines a society's culture.
5. __F___ The multinational stage of corporate international development transcends any

single home country. The ownership, control, and top management tend to be
dispersed among several nationalities.
6. __F___ Multinational corporations typically receive more than 55 percent of its total sales
revenues from operations outside the parent’s home country
7. __T___ Changes in the exchange rates can have major implications for the profitability of
international operations.
8. __F___ Theodore and Stefany sometimes have a tendency to regard their own Jamaican
culture as superior and to downgrade other cultures; this reflects an attitude called
geocentricism.
9. __T___ An example of global sourcing is when Nordia and Sanjay from Gap, Inc use low-
cost Caribbean labor to cheaply produce their clothing, and then finish off and sell
their clothing in the United States.
10. _F___ An organization developed for the purpose of eliminating tariffs in trading
between Canada and the United States is called The North American Freedom of
Tariffs Administration (NAFTA).
Fill in the Blanks
11. _Per capita income is the criterion traditionally used to classify countries as developed or
developing.
12. Global Outsourcing__ means engaging in the international division of labor so that
manufacturing can be done in countries with the cheapest sources of labor and supplies.
13. List the three examples of direct investing mentioned in your text.
joint ventures, green field ventures, Direct acquisition
_____________________________________________________

Multiple Choice
14. Companies that think __________ have a competitive edge.
a. globally
b. regionally
c. nationally
d. strategically
e. “customers first”
15. The process of globalization typically passes through all of the following stages EXCEPT
a. domestic stage.
b. global stage.
c. international stage.
d. inter-domestic stage.
e. multinational stage.
16. If you built a computer company in Africa and then found that your product was having
difficulty being distributed to customers because of the road system, your problem would
be related to
a. an economy incapable of supporting growth.

b. an inadequate infrastructure.
c. a poor resource market.
d. a poor product market.
e. none of the above.
17. Although the challenge in unstable countries is great, often the biggest area of
__________ is also there.
a. opportunity
b. consumer shopping
c. economic improvement
d. leadership
e. low governmental control
18. Color Copiers operates in a true global fashion, making sales and acquiring resources in
whatever country offers the best opportunities and lowest cost, what stage of international
development is it in?
a. Stateless stage
b. Multinational stage
c. International stage
d. Domestic stage
e. Multidomestic stage

DISCUSSION QUESTIONS
1. What policies or actions would you recommend to an e-commerce company wanting to do

business internationally?
2. Compare the advantages associated with the foreign market entry strategies of exporting,
licensing, and wholly owned subsidiaries.
3. What steps could a company take to avoid making product design and marketing mistakes
when introducing new products into a foreign country?
4. Should a multinational corporation operate as an integrated, worldwide business system, or

would it be more effective to let each national subsidiary operate autonomously?
5. What might managers do to avoid making mistakes concerning control and decision-making
when operating in a foreign culture?

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UNIVERSITY OF TECHNOLOGY, JAMAICA

SCHOOL OF BUSINESS ADMINISTRATION

MODULE NAME: INTRODUCTION TO MANAGEMENT (MAN1006)

Unit 4 – Managing in the Global Environment

2. Define the terms internationalization and international management. Identify and

3. Define Multinational Corporation. Identify two multinational companies operating in

1 Revised Aug. 2018 - CH

3. T_ Whether a company operates domestically or internationally, the management

5. F_ The multinational stage of corporate international development transcends any

Fill in the Blanks

2 Revised Aug. 2018 - CH

14. Companies that think __________ have a competitive edge.

a. an economy incapable of supporting growth.

3 Revised Aug. 2018 - CH

1. What policies or actions would you recommend to an e-commerce company wanting to do

4. Should a multinational corporation operate as an integrated, worldwide business system, or

4 Revised Aug. 2018 - CH

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