Answer Questions and make responses to your two classmates
Chapter 1 Review Questions:
3. Why are Russia and Eastern Europe of interest to international managers?
5. Why would MNC’s be interested in South America, India, the Middle East and Central Asia, and Africa, the less developed and emerging countries of the world? Would MNC’s be better off focusing their efforts on more industrialized regions?
Chapter 2 Review Question:
1: In what ways do different ideologies and political systms influence the enviroments in which MNCs operate? Would these challenges be fewer for those operating in the EU rather than for those in Russia or China?
3: How will advances in technology and telecommuncations affect developing countries? Give some specific examples.
Kylie McDonald Week 1COLLAPSE
How has globalization affected different world regions? What are some of the benefits and costs of globalization for different sectors of society (companies, workers, communities)?
Globalization has affected different world regions by allowing companies to sell and trade goods worldwide. Some benefits of globalization include increased opportunities, brand reputation, and market expansion. Costs of globalization would include government regulations, tariffs, cultural differences, and economic contribution costs.
How has NAFTA/USMCA affected the economies of North America and how has the EU affected Europe? What importance do these economic pacts have for international managers in North America, Europe, and Asia?
NAFTA helped the North American economies by removing all trade barriers between the United States, Mexico, and Canada. Similarly, the European Union helped to facilitate trade amongst its countries. This helps international managers to promote their products to various countries without the stress of government regulations.
How will advances in technology and telecommunications affect developing countries? Give some specific examples.
Advances in technology and telecommunications affect developing countries in various ways. For example, this would allow for increased quality control standards which are seriously needed in these countries. One issue associated with the technology would be the unequal distribution resulting in a further divide between the upper and lower classes.
Why are developing countries interested in privatizing their state-owned industries? What opportunities does privatization have for MNCs?
By privatizing state-owned industries you are able to get away from political barriers and corruption that is commonly seen in state-owned industries. Privatization of MNC’s helps to promote competition and potential investors
Michael Whitman Week 1COLLAPSE
2. How has NAFTA/USMCA affected the economies of North American and how has the EU affected Europe? What importance do these economic pacts have for international manager in North American Europe, and Asia?
In North American Countries the NAFTA /USMCA (Per the book still needing to be ratified), has created the world’s largest free trade zone and has removed most barriers for trade. For Canada, Mexico, and the United States. Effects of the NAFTA were (1) Elimination of tariffs;(2) Governments being able to procure different markets in the other two nations; (3) Opportunity to invest in the other Countries was increased; (4) Travel between countries is easier; lastly (5) restrictions removed on agricultural auto part, and energy goods. The USMCA aims to clear up some of the short falls of the NAFTA while keeping everything else already in the trade agreement. Like protecting intellectual property rights, opening the Canadian market to tariff-free dairy imports, and changing the requirements if car manufacturing to encourage more production of cars.
In the early 2000s the EU consisted of 15 nations and in 2013 the EU gained its 28th member. The EU has removed most trade barriers and 19 countries have adopted the same currency called the Euro. Corporations can save cost by using this singular from of currency. Also, with access to most of the pan-European market it also allows MNCs to reduce cost and while increasing efficiencies.
The importance of these economic pacts allows for international managers to conduct business across boarders with access to free trade. It makes it easier for along with more cost effective for exporters to conduct business. As well as being able to invest in different markets while provide economic growth.
4. Many MNCs have secured a foothold in Asia, and many more are looking to develop business relations there. Why does this region of the world hold such interest for international management? Identify and describe some reasons for such interest.
The countries of ASEAN bloc fueling growth and development throughout the region. For the most part the growth and economic gains have been steady with large populations. These markets have been identified as having the foundation established, that can continue to expand even amongst the ever-expanding international competition. Along with the fact that this part of world has large populations there is a driven need for a workforce. But more importantly there is a market that is available for the testing of products or manufacturing of products for cheaper labor.
2. How do the following legal principles impact MNC operations:
1. the principle of sovereignty; Hold that governments have the right to rule themselves as they see fit. In other words, one country’s court cannot be used to rectify injustices or impose penalties in another country unless that country agrees.
2. the nationality principle; Holds that every country has jurisdiction over its citizens no matter where they are located.
3. the territoriality principle; is that each nation has the right of jurisdiction within its legal territory.
4. the protective principle; every country has jurisdiction over behavior that adversely affects its national security, even if that conduct occurred outside the country.
5. the principle of comity; the demand that there must be mutual respect for the laws, institutions, and government of other countries in the matter of jurisdiction over their own citizens. It is not a part of international law; however, it is part of the international custom and tradition.
3. How will advances in technology and telecommunications affect developing countries? Give some specific examples.
When it comes to telecommunications in developing countries cellular infrastructure is proving to be the way to go. Before landline communications were almost impossible because of the cost. However, with cellular infrastructure there is the ability to get communications where it was not possible before. It is causing a dilemma for some nations who do not want to give control of communications to the private sector. But, they know without this resource investors and other corporations will pass at the opportunity to work in that country. When it come to technology, developing countries are becoming ideal locations for cheap labor when it comes to areas that require a lot of man hours to be preformed on a project. For example India is an ideal location for offloading your labor intensive work like long coding projects