STAFFING POLICY

- Polycentric approach: Hiring local managers. (reqiures host-country nationals to be recruited

to manage subsidiaries, while parent-country nationals occupy key positions at corporate
headquarters. In many polycentric approach is a response to the shortcomings of an
ethnocentric approach. One advantage of adopting a polycentric approach is that the firm is less
likely to suffer from cultural myopia (cận thị). A second advantage is that a polycentric
approach may be less expensive to implement, reducing the costs of value creation.)
- Geocentric approach: Hiring people for their skills. ( seek the best people for key jobs
throughout the organization regradless of nationality.)
- Ethnocentric approach: Hiring managers with the same nationality. (is one in which all key
management positions are filled ny parent country nationals.)
***
Staffing: the selection of employees who have the skills required to perform a particular job
Training: preparing the manager for a specific job.
1. What does International Business refer to?
It refers to all commercial activities, private or governmental operated in two countries or
more.
2. Explain what GLOBALIZATION means?
Globalization refers to the shift toward a more integrated and independent world economy.
People and countries can exchange information and goods more quickly and in a less
complicated way.
3. What is the different of Globalization and Localization?
Globalization Localization

DEF: The tendency toward an international DEF: The process of adapting a

integration of goods, technology, product or service to a particular
information, labor, capital, or the process of culture, language, developing a local
making this integration. appeal and satisfying local needs.

Undifferentiation and convergence in Defferences in customer preferences

customer preferences and income across
target countries with economic
development and trade; takes into account
mass demand; quantity; international brand
awaremess; cost benefits from
stradardization.
and income across target countries;
takes into account specific demand;
localism; quality and values; local
brand recognition; competition from
both successful local products and
international brands.
 4. A MATRIX Organization
DEFINITION: ADVANTAGES: DISADVANTAGES:

A company structure in which 1. Access to expertise. 1. Confusion of command.

the reporting relationships are
set up as a grid, or matrix,
rather than in the traditional
hierarchy
2. Stability of permanent 2. Power stuggles and
departments for conflicts.
employees.
3. Lost time in coordinating.
3. Allows for focus on
specific projects, 4. Excess overhead for
products, or customers. managing matrix functions.

5. Six different ways to enter a foreign market: exporting, turkey projects, licensing,
franchising, establish joint vantures with a host country firm, setting up a new wholly owned
subsidiary in the host country.
Entry Modes Definition Advantages Disavantages

Exporting Selling goods to - Ability to realize - High transport costs

another countries location and experience
- Trade barriers
curve economies
- Problems with local market
agents.

- Access to local partner’s - Lack of control over technolo

knowledge.
- Inability to engage in glo
- Sharing development strategic coordination.
Joint- ventures Sharing a business
costs and risks.
- Inability to realize location a
- Polotically acceptable experience economies.

- Ability to earn returns - Creating efficient competitor

from process technology
Acquisition Buyinga business - Lack of long-term mar
skills in countries where
presence.
= Turnkey contracts FDI is restricted.
 - Protection of
technology.
Subsidiary Not sharing a -High costs and risks
business - Ability to engage in
= Wholly owned
global strategic
subsidiaries
coordination.
- Ability to realize
location and experience
economies.
Franchising Allowing another - Very similar to those of - Lack of control over quality.
partner to use brand licensing.
- Inability to engage in glo
name
- Typically asumes those strategic coordination.
costs and risks.
- A service firm can build
a global presence quickly
and at a relatively low
cost and risk.

-Lack of control of technology.

Licensing Allowing other -Low development costs and risks -Inability to realize location a
people to use experience curve economies.
your invention
-Inability to engage in glo
strategic coordination.

ENTRY MODES
- Market Segmentation refers to identifying distinct groups of consumers whose purchasing
behavior differs from others in important ways. Markets can be segmented in numerous ways: by
geography, demography (sex, age, income, education level,…), sociocultural factors (social
class, values, religion, lifestyle choices), and psychological factors (personality).

A joint venture entails establishing a firm that is jointly owned bt two or more otherwise
independent firms.
In a wholly owned subsidiary, the firm owns 100% of the stock.
Franchising is similar to licensing, although franchising tends to involve longer-term
commitments than licensing

1. What does cross-cultural literacy mean?

- Individuals and firms must develop cross-cultural literacy.
- International businesses that are ill informed about the practices of another culture are unlikely
to succeed in that culture.
- Individuals must also beware of ethnocentric behavior (a belief in the superiority of one's own
culture).
2. When business people talk about the growing middle class of emerging markets, is it
an opportunity or threat in International Business? Explain.
-

3. Why is a Free Market Economy important if a foreign business wants to enter that
market?
Supply and demand is the economic model of how prices are determined in a market. Demand
for goods refers to pressure in the market from people trying to buy it. ... That means that the
lack of barriers with little or no entry costs helps competition thrive in a free market economy.

TRUE or FALSE

4. Exporting is often the first international business activity a firm does? (True)

5. Acquisition is the cheapest way of an international business expansion? (False)

6. If a firm is slow to enter a country, it means that no competitors have already entered that
foreign market? (False)

7. If a firm is fast to enter a foreign market, it means that it's the first company to enter that
market? (True)
8. According to sociologists, there is a strong presence of Confucianism in China - the
philosophy that was taught by Confucius over 2,000 years ago. However, it still has an
impact of today's Chinese society, which makes it more of a "Relationship- Oriented
culture" than a "Deal-Oriented culture". (True)
9. A global standardization strategy relies on the production and the sales of a product with the
same attributes worlwide. A localization strategy relies on the production and the sales of a
product for which the attributes are adapted to the local market. (True)
10. International Business only refers to private commercial transactions between more than
two countries. (False)
11. A standardized advertizing strategy means using the same messages, ideas and aesthetics in
all advertisement campaigns across the globe. (True)
12. A company does not need a large size to facilitate, and benefit from, the globalization of
markets. (True)
13. Companies hope to lower their overall cost structure or improve the quality or functionality
of their product offering through globalization of production (True)
14. The most global markets currently are markets for consumer products (False)
15. Outsourcing is a process that is limited to manufacturing enterprises (False)
16. The World Bank has focused on policing the world trading system and making sure nation-
states adhere to the rules laid down in trade treaties. (False)
17. The World Bank is known as the lender of the last resort. (False) IMF is the lender of the
last resort.
18. One of the UN's central mandates is the promotion of higher standards of living, full
employment, and conditions of economic and social progress and development. (True)
19. The Uruguay Round, finalized in December 1993, reduced protection for patents,
trademarks, and copyrights. (False)
20. "Beggar thy neighbor" retaliatory trade policies involved countries progressively lowering
trade barriers against each other, which contributed to the Great Depression of the 1930s.
(False)
21. Rivers Inc., a U.S. based sports apparel manufacturer, sets up a production unit in China to
take advantage of the lower labor costs there. This is an example of foreign direct
investment. (True)
22. World Bank gives an aid of 100 million dollars to Kenya for creating rural health care
facilities. This is an example of foreign direct investment. (False)
 23. The lowering of barriers to international trade enables firms to view the world, rather than a
single country, as their market. (T)
24. According to WTO data, the volume of world merchandise trade has grown faster than the
world economy since 1950. (T)
25. The cost of microprocessors continues to fall, while their power increases. This statement
supports the predictions made by Moore’s Law. (T)
26. Non-U.S. firms increasingly began to invest across national borders because they wanted to
disperse (phân tán) production activities to optimal locations and to build a direct presence
(sự hiện diện) in major foreign markets. (T)
27. A current trend in international business is the decline of medium-sized and small
multinationals, known as mini-multinationals. (F)
28. The globalization of the world economy has resulted in a relative increase in the dominance
of U.S. firms in the global marketplace. (F)
29. Doing business in Russia involves risks because the country has shown signs of shifting
back toward greater state involvement in economic activity and authoritarian government.
(T)
30. Globalization critics argue that the decline in unskilled wage rates is due to the migration of
low-wage manufacturing jobs offshore and a corresponding reduction in demand for
unskilled workers. (T)
31. Evidence suggests that technological change has had a bigger impact than globalization on
the declining share of national income enjoyed by labor. (T)
32. According to supporters of free trade, as countries get richer they commit greater violation
of environmental and labor regulations. (F)
33. According to critics of globalization, today's interdependent (phụ thuộc lẫn nhau) global
economy limits a nation's national sovereignty (chủ quyền) (T)
34. Supporters of debt relief (ủng hộ xóa nợ) argue that new democratic (dân chủ) governments
in poor nations should not be forced to honor debts incurred by corrupt (tham nhũng) and
dictatorial (độc tài) predecessors (T)
35. A firm does not have to become a multinational enterprise to engage in international
business. (T)
36. Managing an international business is much easier than managing a domestic business. (F)

MULTIPLE CHOICE
1. Tick all that is true.
A. Culture means habits and values people have.
B. Culture includes the food people eat, the clothes they wear, the religion they may practice, the
language they speak and maybe also their sense of humour.
C. Culture may not be the most important factor of an International Business decision, it's a key
element of International Business management.
D. All of the above.

2. What is the main disadvantage of wholly owned subsidiaries?

A. they make it difficult to realize location and experience curve economies.
B. the firm bears the full cost and risk of setting up overseas operations
C. they may inhibit the firm's ability to take profits out of one country to support competitive
attacks in another.
D. high transport costs and tariffs can make it uneconomical.

3. What is the FDI Confidence Index? Answer all that is TRUE.

A. It's an annual survey.
B. It tracks political, economic, and regulatory changes that can impact on foreign direct
investment.
C. CEOs, CFOs and other top executives of Global 1000 companies may refer to it for their
international business decisions.
D. It's the Family Dummy Index. It tells you which families are the dummest.

4. Pioneering costs refers to the time and effort spent learning the rules of a new market.

5. All of the following are advantages of acquisitions except

A. they are quicker to execute.
B. it is not easy to realize synergies by integrating the operations of the acquired entities.
C. they enable firms to preempt their competitors.
D. they may be less risky.
6. For businesses, considering ethics is important because... (ANSWER ALL THAT IS
TRUE.)
A. it shows how good or bad a company is
B. it's part of the reputation a company has.
C. it will help reduce the costs of production.
D. justice may question companies if they don't follow ethics.

7. A strategic alliance means

A. choosing an international business partner that shares the same business objectives.
B. that will offer the possibility to set-up a win-win partnership.
C. choosing a partner that will share its knowledge and skills.
D. all of the above

8. You book a room on the website of a famous international hotel chain. As you arrive to
check in, its reassuring brand name is above the door. Its logo is everywhere: on the staff
uniforms, the stationery, the carpets. But the hotel is owned by someone else—often an
individual or an investment fund. But what is the nature of the business that the owner of
the hotel has?
A. A licence.
B. A fully-owned subsidiary
C. A franchise.
D. A joint-venture.

9. The shift toward a more integrated and interdependent world economy is referred to as
_____.
A. outsourcing
B. international marketing
C. privatization
D. globalization

10. In 2008 and 2009, the _____ became the forum though which major nations attempted
to launch a coordinated policy response to the global financial crisis, which started in
America.
A. GATT
B. Group of Ten (G20)
C. Group of Twenty (G20) G20 solve the global financial crisis ( khủng hoảng tài chính)
D. World Trade Organization