Overview
Case #1: Two Scenarios of the Global Economy in 2050 (Chapter 1, Page 16)
1. Which of the two scenarios is more plausible for the global economy in 2050? Why? How does that affect you as a consumer, as a professional, and as a citizen of your country?
2. From a resource-based view, what should firms do to better prepare for the two scenarios?
3. ON ETHICS: From an institution-based view, what should firms do to better prepare for the two scenarios? (Hint: For example, if they believe in “continued globalization,” they may be more interested in lobbying for reduced trade barriers. But if they believe in “de-globalization,” they may lobby for higher trade barriers.)
4. A classmate says: “Global business is relevant for top executives such as CEOs in large companies. I am just a lowly student who will struggle to gain an entry-level job, probably in a small domestic company. Why should I care about it?” How do you convince her that she should care about it?
5. On Ethics: What are some of the darker sides (in other words, costs) associated with globalization? How can business leaders make sure that the benefits of their various actions (such as outsourcing) outweigh their drawbacks (such as job losses in developed economies)?
Case #2: Carlsberg Confront Political Risk in Russia (Chapter 2, Page 33)
1. Why is investment in Russia considered politically risky?
2. Despite the risk, why are foreign multinationals such as Carlsberg eager to invest in Russia?
3. On Ethics: If you were a Carlsberg board member, would you vote “yes” or “no” for a new project to acquire a local brewery in Russia?
4. Identify the top three countries with the most significant change in political risk in the last five years. Why do you think so?
5. On Ethics: As a manager, you discover that your multinational’s products are counterfeited by small family firms that employ child labor in rural Bangladesh. You are aware of the corporate plan to phase out these products soon. You also realize that once you report to the authorities, these firms will be shut down, employees will be out of work, and families and children will be starving. How do you proceed?
Case #3: Monetizing the Maasai Tribal Name (Chapter 3, Page 50)
1. ON ETHICS: Assuming you can afford (and are interested in) some of the “Maasai” products, would you like to pay more for these products if royalties are paid to the Maasai? If so, how much more?
2. ON ETHICS: As CEO of one of the firms mentioned, how are you going to respond to the criticism that your firm is “ripping off,” or “stealing,” from the Maasai?
3. ON ETHICS: If you were a judge in the home country of any of these firms named, how would you proceed with the legal dispute (assuming MIPI can eventually represent the tribe and press legal charges)?
4. Can you find other examples where a group of people or a unique culture has been monetized for profit?
Case #4: FDI in the Indian Retail Industry (Chapter 6, Page 100)
1. What are the possible benefits of FDI in the Indian retail industry?
2. What are the possible drawbacks of FDI in this industry?
3. India is a tantalizing market with huge potential and with onerous restrictions. As an executive at Walmart, Tesco, or IKEA whose domestic growth at home is sluggish, how would you approach this market?
4. Identify the top five (or ten) source countries of FDI into your country. Then identify the top ten (or 20) foreign MNEs that have undertaken inbound FDI in your country. Why do these countries and companies provide the bulk of FDI into your country?
5. Worldwide, which ten countries were the largest recipient and source countries of FDI last year? Why? Will this situation change in five years? How about 20 years down the road? Why?
Case #5: Thai Union’s Foreign Market Entries (Chapter 10, Page 166)
1. Other than Thai Union, have you heard any firm based in Thailand that has become one of the world’s largest (in any industry)?
2. What are some of the unique resources and capabilities that Thai Union has?
3. How many foreign market entry modes does Thai Union use? What are their advantages and disadvantages?
4. During the 1990s, many North American, European, and Asian MNEs set up operations in Mexico, tapping into its location-specific advantages such as (1) proximity to the world’s largest economy (the United States), (2) market-opening policies associated with NAFTA membership, and (3) abundant, low-cost, and high-quality labor. None of these has changed much. Yet, by the 15th anniversary of NAFTA (2014), a significant number of MNEs were starting to curtail operations in Mexico and move to China. Use institution-based and resource-based views to explain why this was the case.
5. From institution-based and resource-based views, identify the obstacles confronting MNEs from emerging economies interested in expanding overseas. How can such firms overcome these obstacles?
Case #6: Moving Headquarters Overseas (Chapter 12, Page 198)
1. What are the drawbacks and benefits associated with moving business unit HQ and corporate HQ to another country?
2. ON ETHICS: If you were a CEO or a business unit head, under what conditions would you consider moving HQ?
3. If you were a government official in the MNE’s home country, what can you do to discourage such moves of multinational HQ out of the country?
4. In this age of globalization, some gurus argue that all industries are becoming global and that all firms need to adopt a global standardization strategy. Do you agree? Why, or why not?
5. On Ethics: Find a high-profile case of an MNE moving its headquarters out of its home country to a new country. Discuss the media and political outcry surrounding this move. If you were CEO, how would you defend the move at a press conference?
Case #7: Chicago versus Shanghai (Chapter 13, Page 217)
1. What questions should Wang ask the people at headquarters in Chicago? Please help him prepare a list.
2. Will Lily and the children be happy about this move? Why?
3. Should Wang accept or decline this opportunity? Why?
4. You have been offered a reasonably lucrative expatriate assignment for the next three years, and your boss will have a meeting about the assignment with you next week. How would you discuss the assignment with your boss?
5. In Ethics: If you were an HCN, do you think pay should be equal between HCNs and expatriates in equivalent positions? Suppose that you were president of a subsidiary in a host country, and as a PCN your pay is five times that of the highest paid HCN (your vice president). What do you think?