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Question
In a brief essay, discuss how decentralized management and organizational culture affect Johnson & Johnson.
Answer
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In a short essay, discuss why simply examining a country's per capita GDP and its population doesn't necessarily lead to a good estimate for potential demand.
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Profit figures for individual country operations may obscure the real impact those operations have on total global performance.
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Because many regional trading groups prohibit companies from producing in more than one member country, companies need to understand how to evaluate international geographic alternatives.
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Which of the following best explains why Burger King has developed such a strong presence in many of the small countries of Latin America and the Caribbean?
A) These business environments allowed Burger King to take advantage of economies of scale.
B) These countries are close to a Burger King's headquarters.
C) These countries offered greater mobility of funds than countries in the European Union.
D) Unlike the BRIC countries, these business environments did not require escalation of commitment.
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Which of the following is true about projected demographic changes up to the year 2050 that could affect future production and sales locations?
A) The share of the working population should rise in developed countries and fall in developing countries.
B) The growth in per capita GDP should be higher in today's developing economies than in today's developed economies.
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A condition that is conducive to low transfer prices from the parent company to the subsidiary and high transfer prices from the subsidiary to the parent company is where the corporate income tax is lower in the subsidiary's country than in the parent country.
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U.S.-based MNEs are not permitted to set budgets and monitor results using the same exchange rate.
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Describe total quality management.
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A company that develops different capabilities and contributions from different countries and shares them in integrated worldwide operations is using a transnational strategy.
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When different companies produce the same commodity, their costs are essentially the same.
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A) multidomestic
B) domestic
C) metanational
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A global strategy tends to be more successful when ________.
A) buyers are looking for customized products at bargain prices
B) the industry's product is a commodity
C) entry barriers are low for new firms
D) suppliers have little bargaining power