Management 12Th Edition Griffin Solutions Manual Full Chapter PDF

Management 12e by Ricky W.
Griffin
MANAGEMENT 12TH EDITION GRIFFIN

SOLUTIONS MANUAL
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CHAPTER 5
Navigating the Global Environment
CHAPTER SUMMARY
This chapter focuses on international issues in management. After introducing students to the nature of
international business, the chapter discusses the structure of the global economy. Various challenges
regarding the economic, political/legal, and cultural environment of international business are described.
The chapter continues with a discussion of how firms compete in a global economy. Finally, the chapter
concludes by characterizing the managerial functions of planning and decision making, organizing,
leading, and controlling as management challenges in a global economy.
It is important to remember it is no longer feasible to segregate a discussion of “international”
management from a discussion of “domestic” management as if they were unrelated activities. Though
this chapter highlights the central issues of international management, global issues, examples,
opportunities, and challenges appear throughout the text.
LEARNING OBJECTIVES
After covering this chapter, students should be able to:
1. Describe the nature of international business, including its meaning, recent trends, management of
globalization, and competition in a global market.
2. Discuss the structure of the global economy and describe the GATT and the WTO.
3. Identify and discuss the environmental challenges inherent in international management.
4. Describe the basic issues involved in competing in a global economy, including organization size
and the management challenges in a global economy.
MANAGEMENT IN ACTION
Into Africa
The opening case covers the rise of the middle class in Africa and the accompanying rise in the demand
for American brand names. Harley Davidson is a popular brand. Harley began to target Africa’s rising
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Chapter 5: Navigating the Global Environment
middle class in 1996 and began Africa Bike Week in South Africa, a Harley-sponsored annual event
drawing 110,000 enthusiasts in 2014. The Elephant’s Bikers club, based in the Ivory Coast, draws people
from each small town they pass through. One club member says people respond positively to them
because they are sharing a pleasure, a dream and people identify with that.
Management Update: According to a December 2014 report by The Freedonia Group, a
market research group, world demand for motorcycles will rise 5.9 percent yearly to
132.4 million units in 2018, valued at $119.5 billion. The report also predicts that E-
bikes and other electric motorcycles will capture market share from internal combustion
engine models in most countries. Harley-Davidson has an electric motorcycle. The bike
is not yet for sale but the company is touring the U.S, Canada, and Europe, letting riders
try out the bike and provide feedback.
LECTURE OUTLINE
I. THE NATURE OF INTERNATIONAL BUSINESS
International business is a pervasive process that touches virtually every sector of the economy and
every business in the world.
People around the world use products on a daily basis that are imported from countries thousands of
miles away.
Group Exercise: Have students generate a list of the ten products they use most
frequently. Then have them research the national origin of the companies that make them.
Discussion Starter: Ask students to predict which products made in the United States are
most likely and least likely to be successful abroad.
A. The Meaning of International Business
There are four forms of international business.
1. A domestic business acquires essentially all of its resources and sells all of its products
or services within a single country.
2. An international business is primarily based in a single country but acquires some
meaningful share of its resources or revenues (or both) from other countries.
3. A multinational business has a worldwide marketplace from which it can buy raw
materials, borrow money, and manufacture products and to which it subsequently sells its
products. Such companies are often called multinational corporations, or MNC’s.
4. A global business transcends national boundaries and is not committed to a single home
country.
Teaching Tip: Stress for students that these four categories of international business fall
along a continuum.
B. Trends in International Business
After World War II, U.S. firms dominated the markets for automobiles, electronic equipment,
machine tools, and most other industrial products.
Increased population spurred by the baby boom and increased affluence resulting from the
postwar economic boom greatly raised the average person’s standard of living and
expectations. U.S. consumers wanted new and better products while U.S. companies failed to
meet those expectations.
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Management 12e by Ricky W. Griffin
However, after war-torn Germany and Japan rebuilt their factories, they began to invade the
U.S. markets. U.S. firms are now finding that to be competitive, they must think globally.
Extra Example: The text identifies countries and the number of Global 500 companies
located within their borders. The text uses numbers from 2011. To show the difference,
here are 2015 numbers: 128 of the world’s largest 500 businesses were U.S. firms, 54 in
Japan, 31 in France, 28 in Germany, and 98 in China. While the other countries have
fewer corporations on the list, China has more than doubled its number. (Fortune’s
Global 500 List, available at www.fortune.com)
Extra Example: Wal-Mart Stores was the world’s biggest firm in 2015, with revenues in
excess of $485 billion.
C. Managing the Process of Globalization
Firms that plan to increase their international business activity must plan their expansion
into foreign markets very carefully. Several alternative approaches are possible.
1. Importing and/or exporting is usually the first type of international business in which a
firm gets involved.
Exporting involves making the product in the firm’s domestic marketplace and selling it
in another country.
Importing means that a good, service, or capital is brought into the home country from
abroad.
Teaching Tip: Stress that the difference in exporting versus importing is point-of-view.
When Rolex markets its watches and ships them to U.S. jewelers, Rolex is exporting, but
the stores who buy the watches for sale in the United States are importing them.
Teaching Tip: Although the U.S. steel industry has declined greatly since the 1970s,
today it is experiencing a revival by importing raw steel from Brazil and other makers
and transforming it into value-added customized products for American manufacturers.
2. Licensing is an arrangement whereby one company allows another to use its brand
name, trademark, technology, patent, copyright, or other assets in exchange for a royalty
based on sales.
3. Strategic alliances occur when two or more firms jointly cooperate for mutual gain. A
joint venture is a special type of strategic alliance in which the partners share ownership
in a new enterprise.
4. Direct investment occurs when a firm headquartered in one country builds or purchases
operating facilities or subsidiaries in a foreign country.
Maquiladoras are light-assembly plants built in northern Mexico close to the U.S.
border. These plants receive tax breaks from the Mexican government, and there is a
large population of workers willing to work for low wages.
Global Connection: The passage of the North American Free Trade Agreement has
increased the importance of maquiladoras to firms doing business in Mexico.
Teaching Tip: Stress the fact that large firms use multiple methods of international
business. For example, Ford ships cars made in the United States to Canada (exporting),
contracts with Mazda to manufacture part of the Ford Escort (licensing), jointly develops
the Mercury Villager minivan with Nissan (strategic alliance), and owns several
manufacturing plants in other countries (direct investment).
Teaching Tip: Use Table 5.1 to describe the advantages and disadvantages of the four
different approaches to internationalization.
D. Competing in a Global Market
The functions performed by a firm are the same, whatever the level of international
involvement. However, the complexity is greater for international firms.
The key question is whether to operate as one global, integrated firm, or to allow each regional
branch to operate more independently with little regard for the overall organization. Most
MNC’s use both global and local activities as they search for the optimal answer.
II. THE STRUCTURE OF THE GLOBAL ECONOMY
A. Mature Market Economies and Systems

A market economy is based on the private ownership of business and allows market factors
such as supply and demand to determine business strategy. The United States, Japan, and
France, among others, have a market economy.
Market systems are clusters of countries that engage in high levels of trade with each other.
The North American Free Trade Agreement (NAFTA) is an agreement made by the U.S.,
Canada, and Mexico to promote trade with one another, is one example of a mature market.
The European Union (EU) is the first and most important international market system.
Group Exercise: Have students sketch a world map from memory with no aids. Have
them mark approximate locations of each market system discussed in the text.
Discussion Starter: Ask students for their opinion of NAFTA. For example, ask whether
they think it is generally a good or a bad thing for each of the three major partners.
Still another mature market system located in Southeast Asia is Pacific Asia (Japan, China,
Thailand, Malaysia, Singapore, Indonesia, South Korea, Taiwan, the Philippines, and
Australia).
Discussion Starter: Ask students which countries in Europe and Asia they have visited.
Then ask how similar to or different from the United States each country was.
B. High Potential/High Growth Economies
High potential/high growth economies are found in countries whose economies are just now
beginning to emerge as important business centers. They are generally characterized as
recently having weak industry, weak currency, and relatively poor consumers, but they are
currently experiencing strong development and growth. China and India fall into this category
today. Additional developing countries include: Brazil, Vietnam, Russia, and South Africa.
Global Connection: Although China and India represent the world’s two largest
countries in terms of population, American firms experience a significant risk in moving
into those markets based on political, economic, and cultural differences.
C. Other Economies
The Middle East defies classification as a market or developing economy due to their mixed
models of resource allocation, property ownership, and development of an infrastructure.
These countries hold tremendous wealth but political instability and tremendous cultural
differences combine to make doing business in many parts of the Middle East both very risky
and very difficult.
Additionally, the countries that are involved in political or ethnic violence (including Peru, El
Salvador, Turkey, Columbia, and Northern Ireland) are poor business risks.
Cuba presents special challenges due to their long insulation from the outside world. Now that
the U.S. and Cuba have taken steps to normalize their relationship, Cuba may quickly become
an important business center.
D. The Role of the GATT and the WTO
The General Agreement on Tariffs and Trade (GATT) is a trade agreement intended to
promote international trade by reducing trade barriers and making it easier for all nations to
compete in international markets. GATT arose after WW II in an effort to avoid trade wars
that would benefit rich nations and harm poorer ones.
One key component of the GATT was the identification of the so-called most favored nation
(MFN) principle. If a country extends preferential treatment to any nation that signed the
agreement, they must offer the same treatment to any other nation who signed the agreement.
The World Trade Organization (WTO) currently includes 140 member nations and 32
observer countries and requires members to open their markets to international trade and
follow WTO rules. Began in 1995, the WTO replaced the GATT and absorbed its mission.
The WTO has three basic goals:
1. To promote trade flows by encouraging nations to adopt nondiscriminatory and
predictable trade policies.
2. To reduce remaining trade barriers through multilateral negotiations.
3. To establish impartial procedures for resolving trade disputes among its members.
III. ENVIRONMENTAL CHALLENGES OF INTERNATIONAL MANAGEMENT
As illustrated in Figure 5.3, three environmental challenges in particular warrant additional

exploration – the economic environment, the political/legal environment, and the cultural
environment of international management.
A. The Economic Environment – three aspects present particular challenges.
1. Economic system—Most countries are moving toward a market economy allowing firms
and customers to decide what products and services to provide. This allows supply and
demand to determine which firms and products will be available.
A related characteristic of market economies is the nature of property ownership. Most
countries have a mix of publicly and privately owned businesses.
Cross-Reference: Point out that the principles of economics classes your students
probably took as sophomores should have provided them with an in-depth understanding
of the material introduced here.
2. Natural resources—Countries vary in the degree to which they have natural resources
available for production purposes or for selling. Japan, for example, has relatively no
natural resources, while the United States has a great variety of natural resources.
Other issues include access to natural resources, especially oil, and the ways in which
other countries use their natural resources. An example is South America clearing the
rain forests to grow crops.
Extra Example: Oil has been the foundation of the economies of the Middle Eastern
countries for decades. In the U.S., wood, minerals, and oil are key natural resources.
3. Infrastructure—Countries also vary in the degree to which they have developed their
infrastructures: the schools, hospitals, power plants, railroads, highways, ports,
communication systems, airfields, and commercial distribution systems.
Extra Example: Alcoa had to build a school and a sewage treatment plant adjacent to a
manufacturing plant it was constructing in Peru.
Extra Example: Following its victory in Baghdad, American and coalition forces teamed
up with local citizens to begin the task of rebuilding Iraq’s infrastructure.
B. The Political/Legal Environment
Four important aspects are government stability, incentives for multinational trade, controls on
international trade, and the influence of economic communities on international trade.
1. Government stability can be viewed in two ways: as the ability of a given government to
stay in power against other opposing factions in the country or as the permanence of
government policies toward business.
The more instability in the government, the riskier it is to do business with a country. In
some very unstable economies, foreign businesses have been nationalized—taken over
by the host country government.
Extra Example: The political turmoil in African countries such as Somalia and Angola
provide vivid examples of the resultant uncertainties that can affect the business
community. Similar problems, albeit to a lesser degree, characterized much of Eastern
Europe during the fall of communism.
Extra Example: Although the government of Cuba has been relatively stable for years
(under the regime of Fidel Castro first and now his brother, Raul), many observers
believe that communism will eventually collapse in that country. Fidel Castro is getting
on in years and there is no evidence of a strong second tier of leadership who will have
the same impact as did Fidel Castro. Following a period of turmoil, Cuba is eventually
expected to become an important market in the Caribbean.
2. Incentives for international trade—Many countries offer incentives to foreign businesses
to attract them to these countries. Such incentives can take a variety of forms. Some
examples of these incentives include reduced interest rates on loans, construction
subsidies, and tax breaks.
3. Controls on international trade—A government can impose a variety of barriers to
international trade to protect domestic businesses.
A tariff is a tax collected on goods shipped across national boundaries. Tariffs may be
collected by the exporting country, countries through which goods pass, and the
importing country. Import tariffs are the most common.
Under the Byrd Amendment, if U.S. companies can demonstrate a foreign company is
dumping (selling for less than fair-market value) its products in the U.S. market, those
products will receive a tariff.
Teaching Tip: The stiff trade barriers employed by Japan continue to be a point of
contention between that country and the United States. U.S. firms argue that there are so
many trade barriers in place in Japan, that it results in unfair competition for them.
Quotas are a limit on the number or value of goods that can be traded. The most
common form of trade restriction.
Export restraint agreements are agreements that convince other governments to
voluntarily limit the volume or value of goods exported to or imported from a particular
country. They are, in effect, export quotas.
“Buy national” legislation gives preference to domestic producers through content or
price restrictions. Several countries have this type of legislation.
4. Economic communities are sets of countries that have agreed to significantly reduce or
eliminate trade barriers among its member nations (a formalized market system).
The European Union (EU) is still the most important.
Passage of NAFTA may be the first step toward formation of a North American
economic community.
The Latin American Integration Association (Bolivia, Brazil, Colombia, Chile,
Argentina, and other South American countries), and the Caribbean Common Market
(the Bahamas, Belize, Jamaica, Antigua, Barbados, and ten other countries) are
examples.
Discussion Starter: Ask students why they think there is no Asian economic community
with the strength and identity of the EU or NAFTA.
C. The Cultural Environment
1. Values, symbols, beliefs, and language—When the countries in which a firm is
manufacturing or selling a product or service have different cultures, problems can arise.
For example, Barbie dolls (made by U.S.-based Mattel) are considered by many Muslim
parents to be too sexual for young children, and so they are not popular products in
Muslim countries.
Discussion Starter: Ask students to think of common business practices in the United
States that might seem odd or unusual in a foreign country. If you have any international
students in class, you might ask them about business practices in their home countries
that would seem odd or unusual in the United States.
Extra Example: A current joint venture between IBM (a U.S. firm), Toshiba (a Japanese
firm), and Siemens (a German firm) headquartered in New York has faced several
problems stemming from cultural differences. For example, the Germans are unhappy
that the offices do not have windows, while the Japanese are unhappy that the offices are
too small for large groups to gather. Meanwhile, the U.S. managers are unhappy because
they feel that the Germans and the Japanese speak their native languages too often rather
than communicating with each other in English.
Language can also be a barrier in international management. Not only the words that are
spoken, but the nonverbal aspects of language can pose a problem to managers in a
foreign country.
2. Individual behaviors across cultures
Geert Hofstede, a Dutch researcher, identified five important dimensions of individual

differences. Figure 5.4 illustrates the differences.
Social orientation—a person’s beliefs about the relative importance of the individual
versus groups to which the individual belongs. Two opposing beliefs are individualism
(the person comes first) and collectivism (the group comes first).
Power orientation—a person’s beliefs about the appropriateness of power and authority
differences in hierarchies. Power respect recognizes authority, while power tolerance
suggests less emphasis on authority.
Uncertainty orientation—feelings held by individuals about uncertain and ambiguous
situations. People with uncertainty acceptance accept change and thrive on new
opportunities. People with uncertainty avoidance dislike and avoid ambiguity.
Goal orientation—manner in which people are motivated to work toward goals. Those
with aggressive goal behavior seek money, possessions, and assertiveness, while passive
goal behavior tends to value quality of life, relationships, and concern for others.
Time orientation—extent to which individuals adopt a long-term versus a short-term
outlook on work, life, and other elements of society. Some cultures have a longer-term
orientation and recognize hard work eventually leads to goal achievement. Those with
short-term orientation require more immediate rewards.
IV. COMPETING IN A GLOBAL ECONOMY

A. Globalization and Organization Size
1. Multinational corporations take a global perspective by transferring capital, technology,
human resources, inventory, and information from one market to another.
Teaching Tip: Note the diverse set of countries represented in Table 5.2. This is a list of
the world’s 60 largest multinationals.
Teaching Tip: Have your students locate the most recent list of the Global 500 (Fortune
publishes the list each year around midsummer, or it is available online at
www.fortune.com.). Compare new lists with this table and note the changes.
2. Medium-size organizations are still primarily domestic organizations that buy and sell
products made abroad and compete with businesses from other countries in their own
domestic market. They are increasingly expanding into foreign markets.
Extra Example: Many medium-size firms are finding it relatively easy—and quite
profitable—to export to foreign markets.
3. Small organizations are benefiting from a global economy by being able to sell their
products and services to a much larger organization without having to change many, if
any, of their current work procedures.
B. Management Challenges in a Global Economy
1. Planning and decision making in a global economy
Managers need a broad understanding of the environment and competition in a global
economy in order to plan effectively. The amount of information required to make sound
business decisions also is greater in a global economy.
Cross-Reference: Note that the international implications for planning are integrated
throughout Chapters 6–9.
2. Organizing in a global economy

The degree of control allowed the local managers in a global economy will influence the
difficulty of organizing. If little control is provided to managers, they must frequently
travel to or communicate with the corporation in order to determine what to do;
managers with more control can simply organize the business in the way they think it
should be done.
Cross-Reference: Note that the international implications for organizing are integrated
3. Leading in a global economy
In order to lead effectively, managers must understand how cultural factors affect
individuals, how motivational processes vary across cultures, how the role of leadership
changes in different cultures, how communication varies across cultures, and how
interpersonal and group processes depend on cultural background.
Cross-Reference: Note that the international implications of leading are integrated
4. Controlling in a global economy
The basic control issues for international managers revolve around operations
management, productivity, quality, technology, and information systems.
Cross-Reference: Note that the international implications of controlling are integrated
END OF CHAPTER QUESTIONS
Questions for Review

1. Describe the four basic levels of international business activity. Do you think any organization
will achieve the fourth level? Why or why not?
There are four basic levels of international business activity: (1) domestic business—no
international ties; buys and sells goods only in its own country; (2) international business—
primarily resides in one country but purchases components from abroad or sells a substantial
amount of finished products to other countries; (3) multinational business—has a worldwide
marketplace from which it buys raw materials, borrows money, manufactures its products, and to
which it sells its products; (4) global business—transcends national boundaries and is not committed
to a single home country.
A few large companies, for example Nokia, are moving towards a global business in which no
single country dominates the firm. It seems clear that, as globalization continues, more and more
companies will eventually achieve that level of activity.
2. For each of the four globalization strategies, describe the risks associated with that strategy
and the potential returns from that strategy.
Importing and exporting carries the risks of higher expenses and lack of customization, but it offers
the lowest-cost way of entering a foreign market. Firms that use licensing run the risk of losing
control of their product or of quality. However, licensing can be an effective way to enter a country
that has lower technological development. Strategic alliances are risky because of the level of trust
and the sharing of profits required between the partners. On the other hand, alliances help firms gain
local expertise quickly and spread the risk of failure. Direct investment requires the greatest capital
outlay and the greatest managerial expertise, but it can provide high profits.
3. Describe the various types of political controls on international trade. Be sure to highlight the
differences between the types.
Tariffs exist when goods that cross national borders are taxed. The effect of tariffs is to protect
domestic firms and raise prices for exported or imported goods. A quota limits the amount of goods
that can be traded between nations, and quotas serve to protect domestic firms and limit the profits
of international competitors. Export restraint agreements are a type of quota that is voluntary, and
they have the same effects as quotas do. “Buy national” legislation gives preference to domestic
producers, but it often affects only a very limited number of products.
4. Explain the relationship between organizational size and globalization. Are large firms the
only ones that are global?
Very large companies are often global firms because they saturated their domestic markets and had
to seek additional consumers overseas. Medium-size and small organizations may have less global
involvement, both because they still have domestic expansion opportunities and because they may
have more limited resources for foreign investment. However, mid-size and small firms can use
strategies such as exporting, licensing, franchising, or alliances in order to extend their resources.
Also, the rise of e-commerce has reduced the cost of international trade for firms of all sizes,
creating international opportunities for smaller firms.
Questions for Analysis

5. What are the advantages and disadvantages for a U.S.-based multinational firm entering a
mature market economy? What are the advantages and disadvantages for such a firm
entering a high-potential or high-growth economy?
A U.S. firm would have experience and expertise in competing in a mature market economy, which
is similar to the American economy. However, a mature economy typically contains a number of
entrenched domestic competitors that would challenge a new entrant into their market. On the other
hand, a high potential/high growth economy would have less competition, but it would require the
U.S. firm to adapt its products and processes to meet local requirements. In addition, government
intervention may be higher in these economies and consumer buying power may be lower.
6. Choose an industry. Describe the impact that international business has had on firms in that
industry. Are there any industries that might not be affected by the trend toward international
business? If so, what are they? If not, why are there none?
Students’ answers will vary, but here is one example: “In the pharmaceutical industry, a few very
large multinational firms dominate globally. These firms are primarily headquartered in the U.S. and
in Europe. Their workforce comes from the best scientists around the world. They sell products to
every country, but they have higher sales and higher profits in mature markets. Developing
countries have needs for different types of drugs and have the greatest potential for sales, yet the
local consumer buying power and regulation limit growth at this time.” Students should see that
almost every industry has been affected by globalization. Exceptions might be purely local
industries, such as dry cleaning services or residential construction.
7. You are the CEO of an up-and-coming toy company and have plans to go international soon.
What steps would you take to carry out that strategy? What areas would you stress in your
decision-making process? How would you organize your company?
While student responses will vary, a typical answer follows. The steps to be undertaken include
assessment of potential expansion target countries and assessment of the firm's products and
capabilities as they will be deployed overseas. Three basic areas need to be considered in decision
making: (1) market factors (including the ability to meet customer needs, the ability to distribute the
product, and the market maturity); (2) technological factors (including the extent and cost of
required redesign); and (3) personal values. Each set of factors will influence strategy, decision
making, and organization. The most important issue in organizational design will relate to the
amount of autonomy to give to each region or country.
Questions for Application

8. Use the Internet to locate information about a company that is using a global strategic alliance
or global joint venture. (Hint: Almost any large multinational firm will be involved in these
ventures, and you can find information at corporate home pages.) What do you think are the
major goals for the venture? Do you expect that the firm will accomplish its goals? If so, why?
If not, what stands in its way?
Students should not have trouble finding an example. Of course, answers will depend on the
company that is chosen. Goals might include quick access to local expertise, a locally-known brand
name, a way to get around limits on foreign direct investment, and sharing of financial risk. Firms
that are likely to accomplish their goals chose their partners wisely, adopted a strategy that
encourages trust and cooperation between the partners, assigned managers that were skilled in joint
venture implementation, and made realistic assumptions about success.
9. Assume that you are the CEO of Walmart. What are the basic environmental challenges you
face as your company continues its globalization efforts? Give some specific examples that
relate to Walmart.
A look at Wal-Mart’s web page (www.walmart.com) indicates the extent of the company’s global
operations. As it expands internationally, it faces numerous environmental challenges in each of the
countries it operates. Students will find out, for example, the problems Wal-Mart faces as it enters
India through an alliance with a local player. Local laws as it pertains to foreign ownership are
distinct in India as also the market challenges.
10. Review the following chart of Hofstede’s cultural dimensions. Based on the chart, tell which
country you would most like to work in and why. Tell which country you would like least to
work in and why.
Power Distance Individualism Uncertainty
Range: 11–104 Range: 6–91 Avoidance Aggressiveness
Range: 8–112 Range: 5-95
Germany 35 67 65 66
India 77 48 40 56
Israel 13 54 81 47
U.K. 35 89 35 66
U.S.A. 40 91 46 62
Adapted from: Geert Hofstede, Cultures and Organizations: Software of the Mind: Intercultural
Cooperation and its Importance for Survival, London: HarperCollins, 1994, 26, 55, 84, 113.
Students’ answers will vary, of course, depending on their individual preferences. In general, some
may prefer a cultural environment that is very similar to that of the United States. These students
may prefer the U.K., for example. On the other hand, some students will prefer a cultural
environment that is quite different from the United States along one or more dimensions and may
prefer Israel or India, for example. For some students, a single dimension may be most important,
while for others, the combination of factors has the greatest impact.
END OF CHAPTER EXERCISES
Building Effective Technical Skills

I. Purpose
This exercise gives students a chance to learn more about foreign countries and their economies
through Internet research. Students also are asked to think about the impact that a country’s
economy has on the involvement of multinational firms.
II. Format
This exercise must be done outside of class if there is not sufficient classroom Internet access. It can
be effectively completed by an individual or a small group of students, and it should take about 20–
30 minutes to complete.
III. Follow-Up
A. List the five countries in the world that projected to have the largest populations in 2050.
Explain how the list will have changed since 2009.
In 2009 China had 1.3 billion people, India had 1.157 billion, the U.S. had 307 million,
Indonesia had 240 million, and Brazil had 199 million. In 2050, the U.S. Census Bureau
estimates that India will 1.6 billion, China will have 1.4 billion, the U.S. will have 439 million,
Indonesia will have 313 million, and Ethiopia will have 278 million.
B. List the five countries that export the most products to the U.S.
In 2009, it was China, Canada, China, Japan, and Germany, respectively.
C. List the five countries that currently import the most products from the U.S.
In 2009, it was Canada, China, Mexico, Japan, and Germany, respectively.
D. Life span is a measure of individual prosperity in a country. What is the average life span in
each of the five largest countries in the world? In each of the five largest exporters to the
United States? In each of the five largest importers from the United States?
In 2009, the current figures were: Brazil–64 years; Canada–80 years; China–72 years,
Germany–78 years; India–63 years; Indonesia–68 years; Japan–81 years; Mexico–72 years;
Nigeria–51 years; and the U.K.–78 years. (The U.S. average life span is 77 years.)
E. Gross domestic product (GDP) is a measure of a country’s economic health. What is the GDP
per capita, in U.S. dollars, of each of the five largest countries? Of each of the five largest
exporters to the United States? Of each of the five largest importers from the United States?
In 2008, the current figures were: Brazil–$10,100; Canada–$39,300; China–$6,000; Germany–
$34,800; India–$2,800; Indonesia–$3,900; Japan–$34,200; and Mexico–$14,200. (The U.S.
GDP per Capita is $47,000.)
F. What are the implications for your firm? What, for example, do the data suggest about the
desirability of various countries as current trading partners? What do the data suggest about
the desirability of the same countries as future trading partners?
Students will see that U.S. multinational firms need to have information about current standard
of living, economy, and population for countries around the world, but even more importantly,
they need to look at future estimates of each of these items. For example, developing countries
such as China and India will be growing in population in the future and will assume added global
importance as they do. Desirable trading partners today might include Japan, Germany, and
Canada, but these countries are likely to lose importance as their population ceases to grow.
Building Effective Communication Skills

I. Purpose
This exercise is designed to help students think through the logistical issues that international
communication can raise.
II. Format
This communication skills exercise is best done alone. Questions 1 and 2 should take no longer than
10 minutes; question 3 can take as long as 30 minutes. Notice that if the exercise is done in class, it
will be necessary to provide students with resource material.
III. Follow-Up
There are no follow-up questions for this exercise. Students will have a variety of answers,
depending upon their opinions and assumptions. Point out to students that even though
communication technology has dramatically improved the ease of international communication,
there are still some very real barriers to communicating internationally.
Other areas that might impact international communication include language barriers and the
unequal distribution of communication equipment in different areas of the world. For example,
managers at remote locations may not have 24-hour communication access if they don’t have phone
service at their residences.
Another concern will be the differing customs surrounding international communication. For
example, managers in some parts of the world may not be willing to stay at work late for an
important call, or they may have religious duties at certain times of the day or week that cannot be
rescheduled, or they may not be willing to conduct business communication from their homes.
MANAGEMENT AT WORK
Nano Technology and Other Innovations
The closing case discusses reverse innovation and disruptive technology. Reverse innovation is
innovation that appears first in the developing world and then spreads to more developed markets. This is
illustrated through examples of medical practices in India now exporting those processes to the U.S.
Disruptive technology creates new markets and value networks by disrupting existing markets and
networks. An example in the case study is India’s Tata Motors which has disregarded all current
practices of car assembly and builds the world’s cheapest car at $2,500.
Discussion Starter: How do students react to the price discrepancies of a medical
procedure costing $600 U.S. dollars in India but they can charge American patients
$4,000 for the same procedure. Does this seem fair? Who is to blame for the difference?
1. Case Question 1: Let’s say that you’re the CEO of a publicly owned company in the United States
and you’re interested in getting involved in the Indian Market. You’ve found an innovative Indian
company whose success stems from its willingness to prioritize longer-term innovation goals over
shorter-term financial goals. The company would make a good partner on some level, and you need
to decide which sort of globalization strategy would work best for you: exporting, joint venture (or
some other form of strategic alliance), or direct investment. Generally speaking, what are the pros
and cons of each option?
Exporting is the easiest option as it holds little risk, the company can sell the products without
modification and export with a relatively small outlay of capital. However, exports are taxed, subject
to tariffs, and have higher transportation expenses. If products are not adapted to the local culture,
they may not appeal to customers, and some products may be restricted. Strategic alliances allow
quick entry into a foreign market and are an effective way to gain access to technology or raw
materials. They allow the firms to share the risk and costs. That sharing may also be a disadvantage
as it limits the control and return each company receives. Other issues involve government stability in
the region and the blending of two corporate cultures. A joint venture would create a new enterprise
and would lock the company into a long-term commitment. Managerial control is more complete in a
direct investment and profits are not shared as in a joint venture. Purchasing an existing facility allows
companies to take advantage of cheaper labor costs without having the costs of building a facility.
The additional complexity in decision making, the economic and political risks, and other challenges
may outweigh the advantages of direct investment.
2. Case Question 2: Here are a few facts about work and management in India, each of which
naturally reflects elements of the country’s cultural environment – attitudes, values, beliefs, and so
forth:
• Each employee has a well-defined role to play in the organization.
• Failure may cause an Indian employee to suffer long-term loss of confidence.
• Indian employees are quite careful about such time guidelines as schedules and deadlines.
• Indian employees are highly relationship and group oriented.
• Honor and reputation are very important to Indian employees.
Where do you see noteworthy differences between attitudes, values, and beliefs in the Indian
workplace and those in the “typical” U.S. workplace? If you were an American manager who’s
been posted to an office in India, what changes would you probably have to make in your approach
to management? How about you personally? Do you think that you’d have more or less difficulty
in making the transition than the “typical” American manager?
Noteworthy differences between cultures: U.S. employees sometimes play many roles within an
organization, not one clear, well-defined role. Some corporations even reward this behavior. Failure
may affect those in the Indian culture adversely but Americans have the attitude of ‘try, try again’.
Failure is not welcomed but is expected at some point in a career. Those in the Indian culture adhere to
guidelines and deadlines while in the U.S. these are viewed more as ‘frameworks’ to work off of, not
set in stone. This could pose a problem. While some company cultures stress team work, the typical
American worker is focused on their own career and furthering that career, a vast difference from the
Indian culture. Honor and reputation are held as values in both cultures. An American manager
relocated to India may have to change their style to more of a coaching style to accommodate the
culture differences. Students’ answers will vary greatly on the last two questions due to their personal
nature.
3. Case Question 3: Rishikesha Krishnan says that innovation in India can grow only if Indian
business develops “a complete and reinforcing innovation ecosystem.” Among other things, such an
“ecosystem” requires companies to adopt “well-developed and well-executed innovation strategies”
and to be prepared to “ride one technology wave after another.” Can you think of any U.S. industry
in which companies have developed an “innovation ecosystem” like the one recommended by
Krishnan? Explain how Krishnan’s criteria can be used to describe business practices in this
industry.
Students may offer various examples. One possible example could be the cell phone industry.
Companies in this industry introduce ‘the next big thing’ on a regular basis and seem to ‘ride one
technology wave after another’. These companies have created an “innovation ecosystem” by focusing
on customer needs and desires. They appear to have ‘well-developed and well-executed innovation
strategies’ in place but may meet obstructions when it comes to reliable phone service. The companies
providing cellular service seem to lag behind the cellular phone industry.
4. Case Question 4: Where does the precept “value for the money” fit into your business
philosophy? How about the precept “value for the many”?
Students’ interpretations will vary greatly.
Another random document with
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The Project Gutenberg eBook of Pinocchio under
the sea
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States and most other parts of the world at no cost and with
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eBook.
Title: Pinocchio under the sea
Author: Gemma Mongiardini-Rembadi
Editor: John W. Davis
Illustrator: Florence R. A. Wilde
Translator: Carol Della Chiesa
Release date: October 15, 2023 [eBook #71880]
Language: English
Original publication: New York: The MacMillan Company, 1913
Credits: Charlene Taylor, Brian Wilsden, and the Online

Distributed Proofreading Team at https://www.pgdp.net
(This file was produced from images generously made
available by The Internet Archive/American Libraries.)
*** START OF THE PROJECT GUTENBERG EBOOK PINOCCHIO

UNDER THE SEA ***
“PINOCCHIO LOOKED AT HIMSELF IN THE WATER.”
PINOCCHIO UNDER THE SEA
TRANSLATED from the ITALIAN
by CAROLYN M. DELLA CHIESA
EDITED by JOHN W. DAVIS

WITH ILLUSTRATIONS
and DECORATIONS by
FLORENCE R. ABEL WILDE
THE MACMILLAN COMPANY
NEW YORK
As I have purchased the
literary copyright for the
translation into and the
publication in the English
language of the volume “Il
Segreto di Pinocchio,” by
Mongiardini-Rembadi, its
reproduction in English is
hereby reserved.—
Carolyn M. Della-
Chiesa.
Copyright, 1913,
By THE MACMILLAN COMPANY.
Set up and electrotyped. Published September, 1913.
Norwood Press
J. S. Cushing Co.—Berwick & Smith Co.
Norwood, Mass., U.S.A.
TABLE OF CONTENTS
CHAPTER PAGE
I. Pinocchio’s Past 1
II. Pinocchio’s Talk with the Dolphin 5
III. Pinocchio gets a Lesson in Politeness 14
IV. He starts on his Journey 29
V. Some Adventures under the Sea 37
VI. Some More Adventures under the Sea 47
VII. Pinocchio goes Ashore 61
VIII. Pinocchio goes Back into the Sea 71
IX. Pinocchio takes a Horseback Ride in the Sea 85
X. A Visit to Beluga, the Whale 99
XI. He has Dinner with the White Whale 115
He makes the Acquaintance of the Gulf
XII. 129
Stream
XIII. He reaches the Arctic 145
XIV. He finds a Treasure Ship 153
He secures the Treasure; the Fight between
XV. 170
the Sea Wolf and the Whale
Marsovino disobeys Orders and nearly Dies;
XVI. 184
Pinocchio finds his Father
PINOCCHIO
UNDER THE SEA
Pinocchio Under the Sea
CHAPTER I
Have you ever read the Adventures of Pinocchio? What a famous
fellow he was! He could talk and walk and live as you do, children;
and still he was only a marionette! How sad the little fellow felt when
he saw his father disappear in his little boat over the sea!
Do you remember how Pinocchio then tried
to swim across the ocean? How he did his
best to save his poor old father? How he
jumped into the water? How he swam and
swam over those great, high waves? And
how at last he became so tired, that he
could only lie still and let the waves carry
him?
If you remember this, you will also surely
remember that on the next day Pinocchio,
almost lifeless, was thrown on an island.
There he found himself on a small stretch of
ground. All around him was the great
ocean.
Where could he get news of his dear old father? As he looked about
him, he saw a large dark object in the water. It was a dolphin. It had
stuck its nose out of the water and seemed to be waiting for the
marionette. Of Pinocchio’s father, the dolphin knew nothing.
“But,” said he, “I am very much afraid the boat has been lost in the
night.”
My dear children, if you have a good memory, you cannot forget that
after saying this the dolphin turned and disappeared.
“All around him was the Great Ocean.”
This is not true. Indeed not. On the contrary, Pinocchio and the
dolphin had a long talk one with the other. At the end of it, they
decided to take a long journey together.
CHAPTER II
While the two were talking, Pinocchio kept thinking and thinking of
his dear father. He looked so sad that the dolphin finally said to him:
“If you grieve so much for the loss of your father, you must be a good
son. We dolphins are very fond of good children, and I more than
others. To prove this to you, I shall only say that the dolphin of which
Pliny speaks was my great-grandfather.”
“Pliny?” said Pinocchio. And he wrinkled his nose,
because the name was not very well known to him.
“Yes, Pliny the Elder, the famous author of a natural
history. He was a Roman, who was born about one
thousand nine hundred years ago. He was killed in a
terrific eruption of Vesuvius, the one that destroyed
Herculaneum and Pompeii.”
Vesuvius, Herculaneum, and Pompeii were as familiar
to the marionette as was Pliny. To speak plainly, he knew nothing
whatever about them. But, making believe he understood everything,
he said, “Yes, yes! These things I know. But of what does Pliny
speak?”
“He tells us that in the suburbs of Naples a dolphin became very
fond of a boy. Every morning he would wait near shore for the boy.
When the child came, the dolphin would make the youngster climb
on his back. Then the dolphin would swim to Pozzuoli, where was
the boy’s school. Here the boy would go ashore, attend to his school
duties, and when they were over, return to Naples on the dolphin’s
back. A few years later the boy died suddenly. The dolphin, after
waiting in vain for him for many days, grieved himself to death.”
“Is this little story really true?” asked Pinocchio.
“Pliny tells it. Some believe, some do not. But this matters little. To
me, then, as to my parents and their parents, good children have
always been pets. Now listen carefully. Among dolphins, it is the
custom for the young ones to travel with the older ones. I am a tutor,
and I am about to start on a long journey with a young dolphin. If you
wish to come with us to look for your father, you are more than
welcome.”
“My dear Mr. Dolphin, I shall be delighted. May I ask where we are to
go?”
“We are to go on a journey around our world.”
“Around the world!” exclaimed the marionette. “It must be amusing to
see two dolphins walking arm in arm around the streets.”
“Yes,” continued the dolphin, “this young pupil of mine, who belongs
to the Marsoon family, wishes to educate himself. And how can he
better educate himself than by travel?”
“To educate himself!” exclaimed Pinocchio, opening wide his eyes.
That word had always been hard for him to swallow. “Educate! Oh!
Oh! That word I never did like.”
“What are you saying?” asked the dolphin.
“Oh, nothing, nothing! I was just thinking that my teeth are aching.”
“Then it might hurt you to go into the water, and ...” began the
dolphin, kindly.
Pinocchio was perplexed. The idea of looking for his father he liked
very much. Still, when he thought of that word educate, he shivered.
He had always hated school as he hated fire. And you remember, he
once lost his feet through playing with fire.
“What a nuisance it will be,” he kept mumbling, thinking of the sleepy
time it would mean for him.
“Tell me, my dear sir,” he then said, just to gain time, “shall we travel
by train?”
“Of course not! How could we? I told you that we are to travel in our
world. That means that we are not to move out of the water.”
“So much the worse,” again thought Master Pinocchio. “Still, I don’t
see what kind of education there can be in seeing only sea and sky!
Good Mr. Dolphin, do you think that, if I go with you, I shall ever find
my father?”
“Perhaps. We may come upon him on some desert island. Who
knows? In any case, it is your sacred duty to look for him. Will you
come?”
“Yes!” answered Pinocchio, firmly. “I will go.”
“Are you afraid?”
“Afraid,” laughed Pinocchio, with scorn. “Why, I don’t know what fear
is. Just listen. Once, while traveling, I came face to face with a lion.
Instead of taking to my heels as many would have done, I took a
large stone and threw it into his mouth. It lodged in his throat. The
poor beast looked at me so sadly, that instead of dispatching him, I
took the stone out of his throat, and he went quietly away.”
“Oh, if that is the case,” replied the dolphin, who could swallow the
story almost as well as the lion had swallowed the stone, “if that is
the case, I beg your pardon.”
“Very well. When shall we start?”
“To-night, just after sunset.”
“How can we travel in the dark?” asked Pinocchio. He and darkness
had never been great friends.
“Do not be afraid. We are to travel by the light of the sun.”
“Of the sun? Why, we are to travel by night.”
“Nevertheless,” answered the dolphin, smiling, as dolphins are wont
to smile, “nevertheless, we shall travel by the light not only of one
sun, but of many suns.”
Pinocchio looked at him with his mouth wide open. The dolphin
calmly went on: “I promise to show you the sun in the sea.”
Pinocchio wrinkled his nose, as was his habit when puzzled. “I
wonder if the dolphin is making fun of me,” he thought.
“Now I shall leave you, as I have many things to do before starting.
Remember, this evening,” said the dolphin as he went off.
“Do not be afraid. I will be here,” was Pinocchio’s reply.
“Very well. Good-by, Pinocchio.”
“Until to-night, Mr. Fish.”
The dolphin, who had gone a short distance, returned and said
proudly, “Just to enlighten you a little, I am not a fish.”
Again Pinocchio’s eyes opened wide.
“What then? A horse?”
“Pinocchio, I am surprised at you. No, neither horse nor fish.”
“I never knew of there being anything but fish in the sea.”
“Who told you so? There are many animals, my dear boy, who live in
the sea, but who are not fish.”
“What then? Birds? Elephants? Dogs?”
“Yes, sir, just so. Still, you people who live on the earth and read
books, you ought to know all these things.”
“Well ... yes ... I do read books. In fact, I have read every book that
has ever been written.”
“All of them? Nothing less? Why, I didn’t think a man could do that if
he had a hundred lives to live,” murmured the good old dolphin.
“Well, Pinocchio,” he went on, “remember to-night, and do not forget
that I am not a fish.” With this remark he disappeared in the blue
waters.
Pinocchio looked after him for a long time.
“The sun in the sea? Dolphins not fish? I don’t know why, but I’m
very much afraid I’m being made fun of.”
CHAPTER III
When he was alone, Pinocchio began to think of
looking for something to eat. After trying here and
there in vain, he had to be satisfied with looking at a
few empty oyster shells. The best he could do was
to make believe that he had already had a good
meal out of them.
This, of course, was not very easily done, because
the pangs of hunger kept making themselves felt
more and more. At last, to forget them, he decided
to make a tour of the island. This he did, and after that he took a
nap.
When he awoke, it was near sunset. He had all he could do to get to
the meeting place in time.
Off he hastened, and reached the spot just in time, for there was the
dolphin, head out of water, looking for Pinocchio.
A small dolphin, about a yard long, was in the wake of the larger
dolphin.
Pinocchio had made up his mind that even though he might be a
dunce on the earth, still he knew more than a common dolphin. So
he looked at the little fellow as much as to say, “Be very careful how
you speak to me, young man. Remember, I am far above you.”
The old dolphin was very busy with the preparations for their journey.
He came and went and gave orders to his servant.

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Management 12e by Ricky W.

MANAGEMENT 12TH EDITION GRIFFIN

I. THE NATURE OF INTERNATIONAL BUSINESS

II. THE STRUCTURE OF THE GLOBAL ECONOMY

A. Mature Market Economies and Systems

III. ENVIRONMENTAL CHALLENGES OF INTERNATIONAL MANAGEMENT

As illustrated in Figure 5.3, three environmental challenges in particular warrant additional

Geert Hofstede, a Dutch researcher, identified five important dimensions of individual

IV. COMPETING IN A GLOBAL ECONOMY

2. Organizing in a global economy

END OF CHAPTER QUESTIONS

Questions for Review

Questions for Analysis

Questions for Application

END OF CHAPTER EXERCISES

Building Effective Technical Skills

Building Effective Communication Skills

Title: Pinocchio under the sea

Author: Gemma Mongiardini-Rembadi

Editor: John W. Davis

Illustrator: Florence R. A. Wilde

Translator: Carol Della Chiesa

Release date: October 15, 2023 [eBook #71880]

Original publication: New York: The MacMillan Company, 1913

Credits: Charlene Taylor, Brian Wilsden, and the Online

*** START OF THE PROJECT GUTENBERG EBOOK PINOCCHIO

EDITED by JOHN W. DAVIS

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