Final exam questions – International Business_Fall 2013 (18.01.2014) 1. What are the economic and political arguments for regional economic integration and impediments to integration? Describe each argument and impediment shortly. The economic and political arguments for Regional Economic Integration are trade diversion and geography. This would exclude third world countries from being exposed to trade tariffs in the international market. Other than that because of being close to each other‚ the
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EPRG Framework A firm needs to an appropriate orientation for the world market. While looking for orientation‚ it is important to understand the EPRG framework. Ethnocentric (E) orientation refers to home country organization. Here the firm ’s reference point is the home market. Generally‚ when the firm is ethnocentric‚ it looks for foreign markets to sell its currents products and surpluses. There is hardly any or minimal product adaptation for the foreign markets. Maybe some minor changes are
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served b. size of the firm c. strategy of the firm (moderate‚ page 390) d. management philosophy of the firm 2. Firms using the ____________ approach to staffing fill key managerial positions with persons from headquarters. a. polycentric b. regiocentric c. global d. ethnocentric (moderate‚ page 391) 3. What does PCN stand for? a. personnel coordinating networks b. personnel certifying networks c. parent-country nationals (moderate‚ page 391) d. projected certified needs 4. When a company suffers
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The company wishes to start its operations abroad ought to choose the character of this subsidiary and the way it is going to be managed. Perlmutter (1969) comes out with the concept of four styles of managing abroad. Ethnocentric subsidiary is managed mainly by home country nationals‚ with the home country language and culture. Therefore‚ the recruitment for majority management positions takes place in home country (Muijen et al 2000). For example‚ the unwritten policy of Ikea is that CEO of any
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Management. The term IHRM refers to the development and deployment of human resource capabilities within an international framework. Companies have several techniques at their disposal when faced with staffing decisions. The first approach is called ethnocentric. It is based on the occupation of a key position by employees from headquarters (i.e. expatriates or parent country nationals PCN). It is assumed that subsidiaries can be managed more efficiently by expatriates. This is because expatriates are
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EPRG framework in international marketing Dr. Howard V. Perlmutter is a world authority on globalisation and pioneer on the internationalisation of firms‚ cities and other institutions. Trained as a mechanical engineer and as a social psychologist‚ Perlmutter joined Wharton’s faculty in 1969. He specialised in the evolution of multinational corporations (MNCs) making predictions to how their viability and legitimacy would change. Perlmutter is the first academic who identified distinctive managerial
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Seminar Global Marketing Exam Questions from Textbook 1 case Day 1 - World is far from globalized‚ not thaaat many multi-national firms (100‚000 firms) according to the UN Global Marketing Can compare market - How to firms differ in actions (Swiss vs. French‚ etc) - Relationship between business behavior in different countries International Trading Trading firms usually not producers Buy stuff locally‚ sell it internationally - Oil‚ minerals‚ etc - Trading is raw materials‚ product
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CHAPTER 1 INTRODUCTION TO GLOBAL MARKETING SUMMARY A company that engages in global marketing focuses resources on global market opportunities and threats. Successful global marketers such as Nestle‚ Coca-Cola‚ and Honda use familiar marketing mix elements – the four Ps – to create global marketing programs. Marketing‚ R&D‚ manufacturing‚ and other activities comprise a firm’s value chain; firms configure activities to create superior customer value on a global basis. Global companies
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Charles Martin in Uganda Charles Martin‚ a 29-year-old American who had worked for Hydro Generation (HG) for 2 years before embarking on the Ugandan damn project. Martins’ educational experience‚ a degree in African Studies from the University of Wisconsin as well as a MBA from the University of Maryland coupled with his experience working through the Peace Corps made Martin uniquely qualified to work for HG in their new venture in Africa‚ a hydro-electric damn in Uganda. During Martins tenure
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economic and socio – cultural factors. Other factors include trust and personal moral merits. There are three approaches to staffing policy which a multinational firm can adopt. These are the ethnocentric approach‚ polycentric approach and the geocentric approach (Hill‚ 2011). A firm using the ethnocentric approach fills all key management positions with parent country nationals; this approach is often used when operations are carried out in less developed countries (Hills‚ 2011). Although this
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