Question: 1-1: Professional athlete A is a star, and professional athlete B is an average player.

How has
the globalization of professional sports affected each of these both positively and negatively?
Answer: Today, in this world of globalization fans expect to see the worlds best players & teams, the search for
talent has become worldwide. U.S. & European professional players scouts in remote areas of Africa looking for tall
high-potential youngsters. Professional athlete A will get the opportunity where as professional athlete B will stay
behind.
Most of todays top-quality athletes are willing to follow money wherever it may take them. Many best
Brazilian soccer players are with European teams that offer higher payrolls. Englands professional soccer league
(Premiership) includes players from about 70 countries, which helps improve the quality of play and increase the TV
fan base outside England. Professional athlete A will get the opportunity where as professional athlete B will stay
behind.
Top players are global brands because of their sports success & usually because of good looks and pleasing
personalities as well. Companies within & outside the sports industry are willing to pay professional athlete A,
millions of dollars for endorsing clothing, equipment, and other products.
Question: 1-2: As you read the chapter, identify and show an example of each international mode of
operations that is illustrated in the globalization of professional sports.
Answer:
Topic: The study of International business: Like the NBA teams, which search globally for talent and additional
markets?
Topic: Increase in and application of Technology: Innovations allow individual athletes and teams to go head
to head at venues around the world and sports media to broadcast competitions to fans everywhere. If it werent for
modern means of transportation and communications, a tennis pro couldnt play in Morocco right after finishing a
tournament in Miami, and advertising wouldnt generate enough prize money to induce the pro to do all that
traveling.
Topic: Increase in global competition: The early success of foreign-born baseball players in U.S. leagues
undoubtedly spurred U.S. basketball and football organizations to look for and develop talent abroad.
Topic: The Question of cultural homogeneity: Despite countries designation of national sports to maintain
tradition, some are losing out to imported sports anyway.
Topic: Why companies engage In International business: Expanding sales: Televising sports competitions to
multiple countries generates advertising revenue in excess of the increased transmission costs.
Topic: Tourism and Transportation: Regional legislation and diplomatic relations affect the work of Dubai Ports
World.
Topic: Direct Investment: U.S. investors bought the Liverpool Football Club, it became a U.S. FDI (foreign direct
investment) in the United Kingdom.
Topic: Legal policies: Strong bilateral agreements and good legalese is an important part of the trade flow that
allows unhindered movement of Dubai Ports Worlds ships across the seas.
Topic: Behavioral factors: Although professional sports are spreading internationally, the popularity of specific
sports differs among countries.
Topic: Economic forces: Percentage of non-U.S.-born players on major-league rosters has been on the rise.

Question:1-3: What global factors have contributed to the growth of the transportation and logistics
industry? How have they contributed to this growth?
Answer: Several factors have led to the growth in the transportation and logistics industry
The separation of raw materials,
Labor and Production,
Decline in tariffs,
Import restrictions and
Exchange rate controls
These factors have resulted in an increased demand for transporting raw materials, unfinished goods, and
finished goods in the global economy. These trends have increased the demand for global transportation and
logistics services. Ports play an important role in the transportation and logistics industry. They provide quality
services, advanced technologies, and skilled labor that lead to increased productivity.
Question:1-4: What steps has Dubai Ports World taken to benefit from global economic changes?
Answer:
Developing Logistics clusters are known to have high transportation services, low transportation costs, and an
efficient flow of goods.
Excellence and innovation are two values the company embodies in its commitment to customers, profitable global
growth, and responsible corporate and personal behavior.
Provide the best customer experience to its customers. It heavily invests in its people and technology to provide
better customer service worldwide.
This customer-oriented approach has resulted in strong relationships with customers and superior customer service
levels. Dubai Ports World Jebel Ali facility has been voted as the Best Seaport in the Middle East for 19
consecutive years.

Dubai Ports World operates in more than 65 terminals across 6 continents: North America, Europe, Asia, Africa,
Australasia, and South America. In 2012, it handled more than 56 million TEU representing a market share of
around 8 percent and its capacity is expected to rise to more than 100 million TEU by 2020.
Question:1-5: What economic factors influence the success of the international transportation and
logistics industry?
Answer: Logistics clusters: are geographically concentrated sets of logistics-related activities.
Logistics clusters are known to have,
High transportation services,
Low transportation costs, and
Efficient flow of goods.
The advantages of such clusters are,
Economies of scope,
Economies of scale,
Economies of density,
Better service, and
Price stability
They also bring value by generating other business activities and bring in new jobs. These benefits create a
positive feedback loop attracting more companies to them, resulting in further cost reduction and better efficiency.

Question:1-6: How can logistics companies increase business with countries in Europe, Asia, or Africa?
Answer:

By developing logistics clusters which requires investment in seaports, airports, railways, & highways;
which helps in overall improvement in the infrastructure of a state.

By global expansion to these countries.

Question: 1-7: What threats exist for Dubai Ports World? How would you overcome these threats?
Answer: The supply chain is an expensive and time-consuming activity. Transportation costs comprise up to 75
percent of the retail price in markets such as Malawi, Rwanda, and Uganda. For example, transporting a car from
China to Tanzania could cost around $5,000 while transporting the same car from China to Uganda would cost
$9,000.
Finding the Right Skills
The logistics industry is primarily a peoples business. Around 25 percent of the costs of logistics
are labor costs. Thus, it becomes essential to attract, train, and motivate qualified people at all levels.
Risk Issues
Supply chain risk can be caused due to,
Environmental risk such as natural disasters
Geopolitical risk such as threat of attacks and terrorism
Economic risk such as currency fluctuations, demand shocks and supplier failings

Technological risk such as outage in IT and telecommunication systems, etc.

Risk can be controlled by conducting scenario analyses, collaborating with the different players by sharing
information, identifying vulnerabilities & synchronizing back-up plans.
Technology in Business
Using advanced I.T tools to facilitate business. It has been using mobile technology to make life easier for
customers by saving time & money.
They also use mobile technology for their employees. Labor deployment, vessel arrival and gate
appointments are communicated via mobile devices. These devices are linked to the HR department which assigns
labor to points of work & results in more efficient & efficient work.
Environmental Considerations
The presence of logistics companies may result in air pollution. This increases the health hazards around
those clusters. There are green innovations in logistics operations and processes that are ultimately minimizing
the negative effects of logistics operations on the environment.
Question:1-8: Discuss some of the legal issues that have faced Dubai Ports World? How has this
affected their operations in the United States and other places?
Answer: Local or domestic policies affect the logistics operations in various markets. Some of these policies may
raise costs, reduce efficiency, give preferential treatment for local or public owned corporations, and put limitations
on investment in certain activities. These policies can significantly impact the supply chain, which may add costs to
a firm and also affect the business activity. Foreign countries may introduce restrictive policies such as importing
raw material as opposed to processed products where the processing might be more efficient. Other restrictions
include bilateral agreements that distort competition, embargoes, business visa restrictions, and security
requirements.