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DeVry BUSN 427 Global Issues in Business Complete Course and Final Exam

BUSN 427 Global Issues in Business

Week 1

Week 1 DQ 1

Although the lowering of trade barriers made the globalization of markets and production a theoretical possibility, technological change made it a tangible reality. How have changes in technology contributed to the globalization of markets and of production? Would the globalization of production and markets have been possible without these technological changes? How does technology create global opportunity?

Week 1 DQ 2

A democratic political system is an essential condition for sustained economic progress. What are your thoughts? Do you agree? Why or why not?

Week 1 Assignment:

BUSN 427 Week 1 Assignment (Chapter 3; Differences in Culture Panasonic) 2000+ Words

Week 2

Week 2 DQ 1

Under what conditions is it ethically defensible to outsource production to a developing world where labor costs are lower when such actions also involve laying off long-term employees in the firm’s home country?

Week 2 DQ 2

What are the potential costs of adopting a free trade regime? Do you think government should do anything to reduce these costs? Why?

Week 2 Assignment:

BUSN 427 Week 2 Assignment (White collar jobs ) 1900+ Words

Week 3

Week 3 DQ 1

How might the political ideology of a host government influence the process of negotiating access between the host government and a foreign MNE? In what ways or for what reasons might a country encourage or discourage FDI because of its ideology?

Week 3 DQ 2

What are the economic and political arguments for regional economic integration? Given these arguments, why don’t we see more integration in the world economy?

Week 3 Assignment:

BUSN 427 Week 3 Assignment (Chapter 7 Case Analysis CEMEX)

Week 4

Week 4 DQ 1

Go to the Toys “R” Us sites for both the United States ( and the United Kingdom ( and try to identify price differences between markets. As a consumer, do you have the right to demand equal prices? Why? As a company, how should you respond to complaints regarding pricing structures?

Week 4 DQ 2

The standard IMF policy prescribes tight monetary policy and reduced government spending for developing nations experiencing a currency crisis. Is this always the right course of action? If there was an alternate approach, how would it affect international businesses?

Week 4 Assignment:

BUSN 427 Week 4 Course Project (BURLINGTON COAT FACTORY) 1450+ Words

Week 5

Week 5 DQ 1

Do the Internet and international e-commerce change the choice of using a transnational strategy that has historically been successful for firms expanding globally? Would it make a difference if a firm relied heavily on traditional business channels versus just e-commerce?

Week 5 DQ 2

From the perspective of a domestic firm, what are the advantages and disadvantages of licensing the rights to the company’s production process and trademark to a firm in a foreign country? What are some of the ways that a firm can reduce the risk of losing its proprietary know-how to foreign companies through licensing agreements?

Week 5 Assignment:

BUSN 427 Week 5 Assignment (Chapter 11 Case Analysis Proctor and Gamble) 1050+ Words

Week 6

Week 6 DQ 1

How might a company make strategic use of countertrade schemes as marketing weapons to generate export sales revenues? What are the risks associated with pursuing such a strategy?

Week 6 DQ 2

What are make-or-buy decisions? What are the advantages of make versus buy and visa versa? Are

Week 6 Assignment:

BUSN 427 Week 6 Assignment (Chapter 14 Case Analysis Boeing 787) 1050+ Words

Week 7

Week 7 DQ 1

Within 20 years we will have seen the emergence of enormous global markets for standardized consumer products. Do you agree with this statement? Why or why not?

Week 7 DQ 2

What is the link between an international business’s strategy and its human resource management policies, particularly with regard to the use of expatriate employees and their pay scales?

Week 7 Assignments:

BUSN 427 Week 7 Final Group Project (Group D)BURLINGTON COAT FACTORY 5200 Words

BUSN 427 Week 7 Peer Review

Week 8 Final Exam

1. Question : (TCO 1) What organization was protested in Seattle in 1999?

2. Question : (TCO 2) According to Francis Fukuyama, the collapse of communism in eastern Europe was followed by which of the following?

3. Question : (TCO 3) Which language is most widely spoken throughout the world?

4. Question : (TCO 3) Which theory deals with competitive advantage for countries?

5. Question : (TCO 4) In the last 30 years, the world economy has seen

6. Question : (TCO 5) Chile is included in which of the following regional integrations organizations?

7. Question : (TCO 6) When a firm engages in hedging it is

1. Question : (TCO 8) What are the three staffing policies available to a multinational corporation?

2. Question : (TCO 8) In distribution strategy, what are the four main differences between countries?

3. Question : (TCO 3) India’s caste system has been around for many years. Explain why its influence has diminished among educated urban middle class Indians.

4. Question : (TCO 3) In 2006, two Chinese journalists reported that the working conditions at Hongfujin Precision Industries where Apple’s iPods are produced were substandard. According to the report, not only were workers at the plant poorly paid, but they were also forced to work overtime. Apple immediately responded to the allegations and audited the factory in question. However, managers at the factory filed a defamation lawsuit against the two journalists. Despite the fact that Apple’s audit did indeed show substandard working conditions at the factory, Hongfujin did not withdraw the lawsuit. Eventually the Reporters Without Borders group took up the case for the two reporters and the lawsuit was dropped. The allegations against Hongfujin Precision Industries were made by two Chinese reporters. Discuss the implications of this for other Chinese companies.

5. Question : (TCO 3) Exports are largely responsible for China’s recent rapid economic growth. The country, capitalizing on its cheap labor force, has focused on converting raw materials into products that are exported to developed countries such as the United States. In 2008, China’s trade surplus was a record $280 billion, and its holdings of foreign exchange reserves were over $1.95 trillion. Some critics have suggested that China is following a neomercantilist policy. Are the claims that China is following a neomercantilist policy valid? Why or why not?

6. Question : (TCO 4) Telefonica is a Spanish telecommunications firm. For decades, Telefonica had operated as a typical state-owned enterprise, but privatization and deregulation changed that path in the 1990s. Telefonica began to aggressively pursue expansion opportunities in Latin America where it quickly became the number one or two player in nearly every country. Later, Telefonica turned its sights on Europe where its acquisitions helped transform the company into the second biggest mobile phone operator in the world. What changes in political and economic environment allowed Telefoncia to start expanding globally? Why did Telefonica initially focus on Latin America? Why was it slower to expand in Europe even though Spain is a member of the European Union?

7. Question : (TCO 7) Why did the world shift from a gold standard to fixed exchange rates?

1. Question : (TCO 5) Concerning European Union’s progress toward creating a single financial market, the quest started in 1999 was to have been completed by 2005, however, progress has been slowed by various factors related to the tradition of each member country operating autonomously. By 2007, significant progress had been made. Some 41 measures designed to create a single market were in place and others were in the pipeline. The current issue facing the EU revolves around the enforcement of the rules that have been established as law. Some experts believe that it will be at least another decade before the benefits of the new rules become apparent. Discussion of this feature can begin with the following questions. What are the benefits of creating a single financial market in the European Union for companies? Does it make sense for consumers?

2. Question : (TCO 6) In the 1980s, Caterpillar was negatively affected by a strong dollar and lost significant market share to Japanese competitor Komatsu. The situation prompted Caterpillar to revise its global strategy and by the 2000s, the company was in a much better position to deal with volatile currency values. More recently, a strong dollar has actually helped boost Caterpillar’s bottom line. In the 1980s, a stronger dollar hurt Caterpillar’s competitive position, but in 2008 a stronger dollar did not seem to have the same effect. What had changed?

3. Question : (TCO 7) In May 2001, the IMF agreed to lend $8 billion to Turkey to help stabilize its economy and halt a sharp slide in the value of its currency. Although initially the Turkish government resisted IMF mandates on economic policy, in 2003 the government passed an austerity budget. By 2005, significant progress had been made and today, the country appears to be on track for recovery, with lower inflation rates, an increase in privatization, and a budget surplus. What led to Turkey’s financial crisis? What goals did the IMF establish as part of the loan agreement?

4. Question : (TCO 8) MD International is an export intermediary for U.S. medical equipment manufacturers. The company has been able to capitalize on falling trade barriers, as well as expand healthcare programs in the Latin American region. MD International currently represents more than 30 companies and sells to some 600 regional distributors. How does an intermediary such as MD International create value for the manufacturers who use it to sell medical equipment in foreign markets? Why do they want to use MD International rather than export directly themselves?

5. Question : (TCO 8) Boeing made the decision to outsource much of the production of the 787 in the hopes of significantly reducing the time to get the

product to market. Boeing also anticipated that its outsourcing strategy would allow it to generate additional sales from the countries that were partners in the process and reduce its costs and risks. Although Boeing’s strategy worked for some components, for other parts the strategy was a disaster. Suppliers were late and some produced poor-quality parts, forcing Boeing to commit additional resources to the project. What are the benefits to Boeing of outsourcing so much work on the 787 to foreign suppliers? What are the potential risks? Do the benefits outweigh the risks?

6. Question : (TCO 8) By 2015, Ford hopes to compete in North America, Europe, and Asia by offering several global models including the Fiesta, the Fusion, and the Mondeo. The company, which refers to its new strategy as One Ford, anticipates that its global models will share the same components and looks and be positioned in a similar way in each market in which they are sold. What is behind Ford’s One Ford vision? What is the company hoping to accomplish with this strategy?

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