BUSN 427 Final Exam (Devry)

BUSN 427 Final Exam (Devry)Click Here to Buy the Tutorialhttp://www.busn427.com/product-28-BUSN-427-Final-Exam-For more course tutorials visitwww.busn427busn427.com(TCO 1) Which are factors that move the world toward moreglobalization?(TCO 2) What is the difference between communists and socialdemocrats?(TCO 3) What is probably more important than culture in explainingthe differences in economic growth between countries?(TCO 3) Which theory deals with competitive advantage for countries?(TCO 4) FDI tends to flow(TCO 5) Which of the following is not a member of the Asia-PacificEconomic Cooperative?(TCO 6) What common good is used in most nations to create anindex for measuring purchase power parity in various nations?(TCO 8) What are the various types of countertrade available?(TCO 8) In distribution strategy, what are the four main differencesbetween countries?(TCO 3) When McDonald’s initially entered China, it was confidentthat its success in other parts of the world would facilitate its successin China, but they quickly found out that the relationships andconnections implied by guanxi are an essential to business success inChina. McDonald’s lost an attractive store location near Tiananmen

Square to a Hong Kong developer who, thanks to relationships andconnections developed over the years, was able to persuade cityofficials to overlook the lease McDonald’s held for the property.Explain the concept of guanxi. Why is it so important to businessesoperating in China? How did McDonald’s lack of guanxi raise itscosts of doing business in China?(TCO 3) In 2006, two Chinese journalists reported that the workingconditions at Hongfujin Precision Industries where Apple’s iPods areproduced were substandard. According to the report, not only wereworkers at the plant poorly paid, but they were also forced to workovertime. Apple immediately responded to the allegations and auditedthe factory in question. However, managers at the factory filed adefamation lawsuit against the two journalists. Despite the fact thatApple’s audit did indeed show substandard working conditions at thefactory, Hongfujin did not withdraw the lawsuit. Eventually theReporters Without Borders group took up the case for the tworeporters and the lawsuit was dropped.Should Apple be responsible for ensuring that its suppliers aresafeguarding the basic rights and dignity of its employees? How canApple be sure that its suppliers do not employ sweatshop labor?(TCO 3) Exports are largely responsible for China’s recent rapideconomic growth. The country, capitalizing on its cheap labor force,has focused on converting raw materials into products that areexported to developed countries such as the United States. In 2008,China’s trade surplus was a record $280 billion, and its holdings offoreign exchange reserves were over $1.95 trillion. Some critics havesuggested that China is following a neomercantilist policy.Are the claims that China is following a neomercantilist policy valid?Why or why not?

(TCO 4) For years, Japan has been relatively closed to significantforeign direct investment, but more recently the government haschanged its policy and actually now encourages inward investment.Wal-Mart, taking advantage of this shift in policy, acquired a largeJapanese retailer in 2002. Wal-Mart’s initial venture into Japan hasbeen challenging and has forced the company to change its approachto better compete with local retailers and meet the needs of Japaneseconsumers.Why did Japan change its position on inward foreign directinvestment? How will Wal-Mart’s investment benefit Japan?(TCO 7) Which of the following are true about the InternationalMonetary Fund?(TCO 5) Concerning European Union’s progress toward creating asingle financial market, the quest started in 1999 was to have beencompleted by 2005, however, progress has been slowed by variousfactors related to the tradition of each member country operatingautonomously. By 2007, significant progress had been made. Some41 measures designed to create a single market were in place andothers were in the pipeline. The current issue facing the EU revolvesaround the enforcement of the rules that have been established as law.Some experts believe that it will be at least another decade before thebenefits of the new rules become apparent. Discussion of this featurecan begin with the following questions.What are the benefits of creating a single financial market in theEuropean Union for companies? Does it make sense for consumers?(TCO 6) In the 1980s, Caterpillar was negatively affected by a strongdollar and lost significant market share to Japanese competitorKomatsu. The situation prompted Caterpillar to revise its globalstrategy and by the 2000s, the company was in a much better positionto deal with volatile currency values. More recently, a strong dollar

has actually helped boost Caterpillar’s bottom line.In the 1980s, a stronger dollar hurt Caterpillar’s competitive position,but in 2008 a stronger dollar did not seem to have the same effect.What had changed?(TCO 7) After joining the European Union in 2004, Latvia establisheda currency board system that pegged the value of its currency to theeuro. This system came under significant pressure when the effects ofthe financial crisis that began in the United States in 2008 spilled overinto the country. Latvia was eventually forced to ask the InternationalMonetary Fund and the European Union for assistance in order to getits financial system and economy back on track. As part of theassistance package, Latvia was required to make significant changesin its economic policy.Why did the initial effort by Latvia’s government to stabilize thecountry’s currency fail? Was the government attempting to stop abanking crisis or a foreign debt crisis?(TCO 8) Vellus Products is a small company that produces personalcare products for dogs. Vellus Products initially began exportingwhen a Taiwanese business placed an order for its dog shampoo.Since then, Vellus Products has expanded its export business andtoday, international sales account for about half its total sales. VellusProducts now sells in 28 countries around the world.Can other small companies learn from the experiences of VellusProducts? Reflect on the tips of Vellus Products’ founder SharonDoherty for beginning the export process.(TCO 8) By 2012, India is expected to export half a million vehicles ayear. South Korea’s Hyundai is leading the charge, exporting overone third of its Indian production. Suzuki and Nissan have both

entered the Indian market more recently. Both companies see theIndian market as an important component in their future productionand marketing strategies.Why did Hyundai and other global automakers choose India as aproduction location? What makes India attractive to auto producers?(TCO 8) Microsoft is meeting the challenges of expanding into thepotentially lucrative Indian market, a market where currently mostpeople cannot afford a computer nor the Microsoft programs to run it.Microsoft has changed its highly standardized approach to markets todevelop products specifically designed to meet the needs of the Indianmarket. In addition, the company has established local R & Doperations that it hopes will generate new products for the market.How does Microsoft vary the marketing mix of its existing productofferings to gain traction with Indian customers? What else hasMicrosoft done to make headway in India?