1) Your company is thinking of investing in East Asia. What cultural issues would you expect to crop up before the FDI begins and after it becomes operational? Which functions in a firm are most affected by culture? (10 points)
What dimensions of culture are useful to managers in analyzing cross-cultural differences? Rank and explain the top five dimensions of culture in order of importance to MNE management according to you. (10 points)
2) International executives working in foreign subsidiaries are often confronted with conflicting demands in their jobs. Headquarters (HQ) is keen on integrating key functions and activities whereas local governments have their own national economic development and social objectives. Identify three major areas of conflict facing subsidiary managers in their jobs in trying to balance HQ demands and local government policies and explain how they might deal with them. (20 points)
3) Strategic alliances and international joint ventures are becoming the norm for firms engaged in international business. At the same time, more and more industries are becoming global in nature. a) How can Multinational Enterprises (MNEs) execute a global strategy that by definition requires total control keeping in mind they have dozens of foreign partners that demand shared decision-making? b) Normally an MNE with a global strategy would have a worldwide product structure but if it has many alliance partners what is the appropriate organizational structure and what kind of adjustments should be made? (20 points)
4)) Why does an international manager need to understand regional economic integration and other forms of cross-national cooperation? If your firm has plans to expand in an EU country what kinds of opportunities and threats do you perceive? (12 points) Visit https://en.wikipedia.org/wiki/International_business for more details.
Is the proliferation of such agreements (free trade areas, customs unions, etc.) good for world trade in general? Which type of trade agreements is better for world trade: regional agreements like NAFTA, EU or the worldwide WTO? (8 points)
5) MNEs have a lot options regarding modes of entry (MOE) into a foreign market (e.g. exporting, licensing, foreign direct investment, international joint ventures/strategic alliances, etc.). Why do MNEs struggle in figuring out the right MOE? Is MOE a one-time decision or can MNEs change their entry strategy? Which amongst all of the MOE options are easy to change and which are the not? (20 points)
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