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Question 2: Some cultures tend to adopt new products more quickly than others, based on several factors:

Modernity: The extent to which the culture is receptive to new things. In some countries, such as Britain and Saudi Arabia, tradition is greatly valuedthus, new products often dont fare too well. The United States, in contrast, tends to value progress. Homophily: The more similar to each other that members of a culture are, the more likely an innovation is to spreadpeople are more likely to imitate similar than different models. The two most rapidly adopting countries in the World are the U.S. and Japan. While the U.S. interestingly scores very low, Japan scores high. Physical distance: The greater the distance between people, the less likely innovation is to spread. Opinion leadership: The more opinion leaders are valued and respected, the more likely an innovation is to spread. The style of opinion leaders moderates this influence, however. In less innovative countries, opinion leaders tend to be more conservative, i.e., to reflect the local norms of resistance.

The first is region-specific (e.g., government regulations, stage of economic development, maturation and nature of distribution channels, culture, demographic variables, competition). The second is product-specific (e.g., brand, width of product line, composition, country of origin, historical reputation). The third is company-specific (e.g., culture in regards to decentralization of authority, how attractive it perceives a market, its core strengths and weaknesses, etc.) 1. Influence of culture 2. Influence of international politics and government policy 3. Country on label versus country of origin 4. Economics 5. Other region-specific factors Secondly, global diffusion patterns for two branded products (Nestls Omega Plus and Danones Actimel) are investigated both quantitatively and qualitatively. 1. Brands 2. Country of origin 3. Product composition, brand identity and standardization 4. Company-specific factors: Management to culture 5. Local vs. global brands 6. Organizational structure and brand/product management Question 3: Conducting and managing international advertising operations is more complex than undertaking advertising. Differences in the nationality of parties involved, relatively less mobility of factors of production, customer heterogeneity across markets, variations in business practices and political systems, varied business regulations and policies, use of different currencies are the key aspects that differentiate international businesses from domestic business. These, moreover, are the factors that make international business much more complex and a difficult activity.

Question 5: A prominent issue in the international staffing literature is expatriate failure, defined as the premature return of an expatriate manager to his or her home country. The costs of expatriate failure can be substantial. Expatriate failure can be reduced by selection procedures that screen out inappropriate candidates. The most successful expatriates seem to be those who have high self-esteem and self-confidence, get along well with others, are willing to attempt to communicate in a foreign language, and can empathize with people of other cultures. Training can lower the probability of expatriate failure. It should include cultural training, language training, and practical training, and it should be provided to both the expatriate manager and the spouse. Management development programs attempt to increase the overall skill levels of managers through a mix of ongoing management education and rotation of managers through different jobs within the firm to give them varied experiences. Management development is often used as a strategic tool to build a strong unifying culture and informal management network, both of which support transnational and global strategies. It can be difficult to evaluate the performance of expatriate managers objectively because of unintentional bias. A number of steps can be taken to reduce this bias.

Question 6 : Human resource management (HRM) refers to the activities an organization carries out to utilize its human resources effectively. These activities include determining the firm's human resource strategy, staffing, performance evaluation, management development, compensation, and labor relations. The role of HRM is complex enough in a purely domestic firm, but it is more complex in an international business, where staffing, management development, performance evaluation, and compensation activities are complicated by the profound differences between countries in labor markets, culture, legal systems, economic systems, and the like. The HRM function must also deal with a host of issues related to expatriate managers (citizens of one country working abroad). Staffing policy is concerned with the selection of employees who have the skills required to perform a particular job. Staffing policy can be viewed as a major tool for developing and promoting a corporate culture (the organizations norms and value systems). Types of Staffing Polices

Research has identified three main approaches to staffing policy within international businesses. These have been characterized as an ethnocentric approach, a polycentric approach and a geocentric approach. The Ethnocentric Approach An ethnocentric approach to staffing policy is one in which key management positions in an international business are filled by parent-country nationals. The policy makes most sense for firms pursuing an international strategy. Firms pursue an ethnocentric staffing policy for three reasons: First, the firm may believe there is a lack of qualified individuals in the host country to fill senior management positions. Second, the firm may see an ethnocentric staffing policy as the best way to maintain a unified corporate culture. Third, if the firm is trying to create value by transferring core competencies to a foreign operation, as firms pursuing an international strategy are, it may believe that the best way to do this is to transfer parent country nationals who have knowledge of that competency to the foreign operation. Despite the rationale for pursing an ethnocentric staffing policy, the policy is now on the wane in most international businesses. There are two reasons for this. First, an ethnocentric staffing policy limits advancement opportunities for host country nationals. Second, an ethnocentric policy can lead to cultural myopia (a failure to understand host-country cultural differences that require different approaches to marketing and management). The Polycentric Approach A polycentric staffing policy is one in which host country nationals are recruited to manage subsidiaries in their own country, while parent country nationals occupy the key positions at corporate headquarters. While this approach may minimize the dangers of cultural myopia, it may also help create a gap between home and host country operations. The policy is best suited to firms pursuing a localization strategy. There are two advantages of the polycentric approach. First, the firm is less likely to suffer from cultural myopia, and second, this staffing approach may be less expensive to implement than an ethnocentric policy. There are two important disadvantages to polycentric staffing approach however. First, host country nationals have limited opportunities to gain experience outside their own country and thus cannot progress beyond senior positions in their own subsidiaries. Second, a gap can form between host country managers and parent country managers. The Geocentric Approach A geocentric staffing policy is one in which the best people are sought for key jobs throughout the organization, regardless of nationality. This approach is consistent with building a strong unifying culture and informal management network. It is well suited to firms pursuing either a global or transnational strategy. The immigration policies of national governments may limit the ability of a firm to pursue this policy. The advantages of a geocentric approach to staffing include enabling the firm to make the best use of its human resources and build a cadre of international executives who feel at home working in a number of different cultures. The disadvantages of geocentric approach include difficulties with immigration laws and costs associated with implementing the strategy. The managers of today's internationalized companies are increasing their efforts to find new ways of minimizing the costs of their global expansions by questioning the costs of their expatriates in terms of adjustments of expatriate compensation packages and increased use of younger and more globalized employees. Most companies are in addition increasingly questioning whether they should continue to send costly expatriates to run foreign operations or to take advantage of the local workforce. However, going through the HR-literature it has become obvious to our group that there is no fully developed theoretical framework for

weighing the exact challenges and benefits of employing local talent versus expatriate employees. But with background in our disperse HR-readings we suggest to summarize an approach to such weighing. However, not comment on each of the parameters in the model, but use the model as point of departure for further discussion, instead. Managers should determine the advantages of both types of employees (expatriates or locals) with regard to the general strategic goals, costs and productivity of their companies. Different strategic objectives of a company will typical dictate when to send expatriates and when to localize the business, so it is therefore crucial to determine whether expatriates can meet these objectives most effectively or whether local nationals can accomplish them as well. That a manager in such situations could solve this dilemma by comparing each of the company's assignment situations with four most common reasons for using expatriates: 1) to establish a corporate culture (communicating and translating the corporate vision), and in addition, if the company is setting up a new business, it only has the expertise to establish it through expatriate transferees; 2) to transfer knowledge (locals as a choice, but expatriates to transfer technology to three or four locals at one time, which can be a major cost advantage); 3) to fill a skills gap (providing skills that are not available in the local marketplace); and 4) to develop the individual worker for future assignments (which has long-term implications for a company and continued understanding of the global market). If the manager looks at the value of each of the above four reasons for sending someone from the home office, then the business case should become more clear because of the fact that if the assignment fits into all of these four common reasons, then the price of an expatriate might be worth paying. We recognize, however, that even if the above reasons speak for expatriation, there surely are abundant difficulties as well, when choosing to expatriate. From the expense of moving an individual or family overseas to dual-career concerns to the downtime that it takes for expatriates to adjust to culture and life abroad, expatriates can be "high maintenance" and present a raft of complications in administration. Also according to the literature there are even more concerns when expatriates after a longer assignment return to the home location and face readjusting back to life at headquarters. On the other hand, if a company already has a strong global mindset, it will most likely be able to find talent anywhere around the world and assign them based on expertise - and not on geography - and then the company should consider using local talents as soon as possible, as local staff brings its own set of benefits: 1) understanding the local business environment and how to transact business most effectively; 2) knowing the local culture and the nuances that are important in that country; 3) grasping the marketplace from an insider's perspective and being more in-tune with the quickly changing market; 4) providing insight into local marketing, sales and product development. However, using local staff also has its challenges - from availability of talent to training so they understand the corporate culture of the home office. Though, choosing locals are not without costs as practical evidence (www.kmpg.co.uk) shows that when managers discuss staffing overseas, they often see local employees as cheaper, as they do not actually stop to consider the real costs of bringing a local on board (as these costs can be considerably higher than the cost of a expatriate employee because of a

wide range of regulations regarding overtime, mandatory time off, and severance benefits). Further, some local laws (i.e. Germany) require a thirteenth month pay, and there can be enormous issues surrounding retirement and social security, so a company's labor costs can therefore skyrocket depending upon the location that the company chooses. In short, this group will not recommend any final solution whether companies should use expatriates or locals, as we recognize that both choices seem to present an array of benefits and challenges dependent on the companies' specific assignment situations. Instead, we therefore argue that most companies might be better off finding their own best combination of expatriates and locals, as the time it takes to "nationalize" an operation (from expatriates to host country individuals) is as unique as each company. Question 7: International Logistics is the process of planning, implementing, and controlling the flow and storage of goods, services, and related information from a point of origin to a point of consumption located in a different country. Logistics has gained importance due to the following trends: Raise in transportation cost. Production efficiency is reaching a peak Fundamental change in inventory philosophy Product line proliferated Computer technology Increased use or computers Increased public concern of products Growth of several new, large retail chains or mass merchandise with large demands & very sophisticated logistics services, by pass traditional channel & distribution. Reduction in economic regulation Growing power of retailers Globalization Furthermore, Logistics has gained importance in the international marketing with the following reasons: 1.Transform in the customers attitude towards the total cost approach rather than direct cost approach . 2.Technological advancement in the fields of information processing and communication. 3.Technological development in transportation and material handling. 4.Companies are centralizing production to gain economies of scale. 5.Most of the MNC organizations are restructuring their production facilities on a global basis. 6.In many industries, the value added by manufacturing is declining as the cost of materials and distribution climbs. 7.High volume data processing and transmission is revolutionizing logistics control systems. International logistic become more important because 1. When a firm becomes heavily involved in international business, logistics is seen as a critical part of the strategic planning process. An effective international logistics strategy not only offers significant cost savings but also can help firms penetrate new foreign markets. Indeed, international logistics is recognized as an integral part of the marketing mix that furthers the global marketing process.

2. With the assistance of an efficiently managed international logistics function, firms can gain economies of scale from increased production, obtain technological advantages from other countries, and expand their markets. 3. As logistics activities become a substantial part of a firm's international operations, the role played by international logistics managers also increases in importance. As the global marketplace continues to expand, efficient management of resources and strategic alliances become essential for maintaining a competitive edge. With the tendency toward internationalism comes the growth of factories and centralized inventories. Managers juggling the complex logistics to support company growth know that the landscape is constantly evolving. Organizing for international logistics with an attention to special areas such as layering and tiering, the evolving role of individual plants, and multiple freight modes are just three areas of special importance when developing logistic strategies to maximize company profits including : 1. Targeting and tiering 2. Evolving role of individual plants 3. Reconfiduring processes 4. Question 8: Here are the main means of transport: rail, marine, inland, waterways (river), automobile, air, and pipeline. Each of the modes of transport has specific characteristics in terms of logistics management, strengths and weaknesses, determine the possibilities of its use in the logistics system. 1. Rail: Advantages: high throughput, and the freight, regardless of climatic conditions, time of year and day, high frequency of traffic, the ability to effectively organize the implementation of loading and unloading operations; relatively low rates and significant discounts for transit shipments, high speed delivery of goods over long distances. Disadvantages: limited number of carriers, large capital investments in industrial and technology base, high material and energy intensity of transport, low accessibility to the final point of sales (consumption), high enough of the cargo. 2. Naval: Advantages: possibility of intercontinental transport, low cost of transport over long distances, the freight and high throughput, low capital intensity of transport. Disadvantages: limited traffic, low speed of delivery (large transit time),depending on geographical, navigational and weather conditions, the need for complex email infrastructure, stringent requirements for packaging and stowage of cargo, the low frequency of shipments. 3. Inland waterways (river): Maritime transportation: Because of the physical properties of water conferring buoyancy and limited friction, maritime transportation is the most effective mode to move large quantities of cargo over long distances. Main maritime routes are composed of oceans, coasts, seas, lakes, rivers and channels Advantages: high carrying capacity in the deep rivers and reservoirs, low transportation costs, low capital intensity. Disadvantages: limited traffic, low speed of delivery of goods; dependence on the uneven depth of rivers and reservoirs, navigation conditions, seasonality, low reliability of transport and cargo safety. 4. Road transport: Advantages: high availability, possibility of delivery of cargo from door to door; high agility, flexibility, agility, ability to use different routes and delivery schemes, high safety of the cargo, the possibility of sending the goods in small batches; great opportunity to select the most suitable carrier.

Disadvantages: low productivity, dependence on weather and road conditions, the relatively high cost of transport over long distances, lack of environmental cleanliness, punctuality of discharge, a relatively small payload. 5. Air transport: Advantages: the highest speed of delivery, high reliability, the highest integrity; the possibility of reaching remote areas. Disadvantages: high cost of transportation, the highest rates among the other modes of transport, high capital intensity, material and energy transport, the dependence on weather conditions. 6. Pipeline: Advantages: low cost, high capacity, high safety of the cargo, low capital intensity. Disadvantages: limited types of cargo (gas, oil, emulsions and raw materials), low availability of small volumes of transported cargo. 7. Intermodal transportation: Concerns a variety of modes used in combination so that the respective advantages of each mode are better exploited. Although intermodal transportation applies for passenger movements, such as the usage of the different, but interconnected modes of a public transit system, it is over freight transportation that the most significant impacts have been observed. Containerization has been a powerful vector of intermodal integration, enabling maritime and land transportation modes to more effectively interconnect. 8. Telecommunications: Cover a grey area in terms of if they can be considered as a transport mode since unlike true transportation, telecommunications often does not have a physicality. Yet, they are structured as networks with a practically unlimited capacity with very low constraints, which may include the physiography and oceanic masses that may impair the setting of cables. They provide for the instantaneous movement of information (speed of light in theory). Wave transmissions, because of their limited coverage, often require substations, such as for cellular phone networks. Satellites are often using a geostationary orbit which is getting crowded. High network costs and low distribution costs characterize many telecommunication networks, which are linked to the tertiary and quaternary sectors (stock markets, business to business information networks, etc.). Telecommunications can provide a substitution for personal movements in some economic sectors. What initially began as improving the productivity of shipping evolved into an integrated supply chain management system across modes and the development of intermodal transportation networks. Intermodal transportation network. A logistically linked system using two or more transport modes with a single rate. Modes are having common handling characteristics, permitting freight (or people) to be transferred between modes during a movement between an origin and a destination. For freight, it also implies that the cargo does not need to be handled, just the load unit such as a pallet or a container. This involves the use of at least two different modes in a trip from an origin to a destination through an intermodal transport chain, which permit the integration of several transportation networks. Intermodality enhances the economic performance of a transport chain by using modes in the most productive manner. Thus, the line-haul economies of rail may be exploited for long distances, with the efficiencies of trucks providing flexible local pick up and deliveries. The key is that the entire trip is seen as a whole, rather than as a series of legs, each marked by an individual operation with separate sets of documentation and rates. This is organized around the followings concepts:

1. The nature and quantity of the transported cargo. Intermodal transportation is usually suitable for intermediate and finished goods in load units of less than 25 tons. 2. The modes of transportation being used. Intermodal transportation is organized as a sequence of modes, often known as an intermodal transport chain. The dominant modes supporting intermodalism are trucking, rail, barges and maritime. Air transportation usually only require intermodalism (trucking) for its "first and last miles" and not used in combination with other modes. Additionally, load units used by air transportation are not readily convertible with other modes. 3. The origins and destinations. Distances play an important role as the longer the distance, the more likely an intermodal transport chain will be used. Distances above 500 km (longer than one day of trucking) usually require intermodal transportation. 4. Transportation time and costs. Intermodalism tries to use each mode according to their respective time and cost advantages so that total transport costs are minimized. 5. The value of the cargo. Suitable for intermediate cargo values. Low and high value shipments are usually less suitable for intermodal transportation. High value shipments will tend to use the most direct options (such as air cargo) while low value shipments are usually point to point and relying on one mode such as rail or maritime. 6. The frequency of shipments. Intermodalism functions well when cargo flows need to be continuous and in similar quantities. Question 9: Businesses like strategic sourcing for three reasons: 1. Strategic sourcing is based on repeatable best practices. Instead of each department trying to figure out how to go about conducting competitive bidding for its own categories, strategic sourcing is a formalized process with a defined sequence of steps that have taken into consideration the most effective methods of competitive bidding. This maximizes both the efficiency and the effectiveness of the sourcing process. 2. Strategic sourcing is led by experts in the sourcing process. There are many challenges to strategic sourcing. Many mistakes can be made if the process is managed by someone without deep experience. Having the strategic sourcing process led by someone who has experienced all of the veritable landmines of sourcing leads to higher quality results. 3. Most important, strategic sourcing has proven to be very effective at reducing costs. Cost reductions of 20% or more in a category of goods or services are common. The main sourcing strategies available to a business is following: 1. Comprehensive BPO this is the most complex, strategic, long term, and demanding relationship you can have with a supplier. A comprehensive outsourcing deal means that you are engaging with a training partner for a multi-year period to strategically manage a comprehensive set of processes across all four functional process areas of your training organization. Both parties are willing to commit dedicated resources to the deal which means you are both committing people and financials over an extended period of time. Comprehensive does not imply that the supplier does everything associated with training for your company. Even in a comprehensive engagement, you as the buyer still must manage some processes like client relationship management or strategic planning. The idea

that you give away all responsibility to the supplier is actually a myth, and NEVER happens in real life. BPO contracts are consist of a master services agreement (MSA), multiple service level agreements (SLA), and many statements of work (SOW). 2. Selective BPO this is also a very complex engagement, but somewhat less than a comprehensive deal because of the reduced integration of functional processes. In selective outsourcing, you engage a training partner to manage multiple processes within one functional area of training (administration, content, delivery, or technology) but not processes across functional areas. Here you may contract with a supplier for the next three years to manage all custom content development activities for product e-learning courses. But the supplier would not deliver any courses, manage registration or admin services related to this training, nor host or support the courses online. Contracts for selective BPO deals are similar in that there is an MSA, SLA, and SOWs, but they are somewhat less complicated because there are fewer processes involved. 3. Licensing Agreement these engagements are forms of out-tasking and used when sourcing a tangible asset, such as a technology or real estate for training. Licensing agreements for technology usually take the form of software as a service (SaaS) contracts. When the cost of implementation and set-up are high, these deals are often times multi-year. This allows the client to amortize costs over longer periods of time. When these costs are low, deals often take the shape of month to month. For example, licensing agreements for an LMS/LCMS tends to be multi-year because of the integration required in set-up, where licenses for authoring and delivery platforms tend to be month to month. Contracts for license agreements are generally purchase orders with defined terms and a unit price in the form of price per time. 4. Contracting the second form of out-tasking engagements, and the most common form of outsourcing in the training industry. Some refer to it as a labor for hire engagement. Its where we pay a contractor by the hour/day/week/month to perform a task. Contracting is commonly used when we source a supplier to manage a project, and we compensate them when the project is complete. The project can be consulting, instructional design, delivery of a course, etc. It is a tactical engagement when your objective is to limit the complexity and breadth of processes you expect the supplier to manage. It is transactional, which means the relationship ends when the activity is complete. It is the most flexible, least risky and easiest to manage relationship for the buyer. It limits your obligations to a supplier and allows you to easily terminate a contract when things are not going well. Contracts are generally purchase orders with defined terms of activities for a unit price for each deliverable. Unit prices are usually in price per time or price per project terms.