Scribd
Upload
3K views2 pages

Homework 1

This document summarizes key points from a homework assignment on international business. It discusses the differences between international, global, and multidomestic companies. Global companies try to standardize operations worldwide while multidomestic companies adapt to local markets. It also states that if a nation's GNI is lower than a global firm's sales, the nation cannot enforce its wishes on the local subsidiary. Finally, it explains that managers may be unable to apply domestic techniques in other countries due to cultural differences between countries that influence workplace values and business communication.

Uploaded by

Ladie Tiger
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
3K views2 pages

Homework 1

This document summarizes key points from a homework assignment on international business. It discusses the differences between international, global, and multidomestic companies. Global companies try to standardize operations worldwide while multidomestic companies adapt to local markets. It also states that if a nation's GNI is lower than a global firm's sales, the nation cannot enforce its wishes on the local subsidiary. Finally, it explains that managers may be unable to apply domestic techniques in other countries due to cultural differences between countries that influence workplace values and business communication.

Uploaded by

Ladie Tiger
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 2

Chapter 1: Homework Tiffany Watt The Rapid Change of International Business BA 421 01

August 30, 2011

Questions 1) What are the differences among international, global, and multidomestic companies? Global companies are companies that try to standardize and integrate operations worldwide in most or all functional areas. In addition, global companies have global vision and they maintain a presence in key markets around the world. They also look for similarities, not difference, among markets. Multidomestic companies, in contrast, have been defined as a kind of holding company with a number of overseas operations, each of which is left to adapt its products and marketing strategy to what local managers perceive to be unique aspects of their individual markets. In addition, multidomestic companies focus on the differences, not similarities, among markets. International companies encompass both multidomestic as well as global companies. 3) A nation whose GNI is smaller than the sales volume of a global firm is in no position to enforce its wishes on the local subsidiary of that firm. Is this statement true or false? Please explain your rationale. In my opinion, this statement is true because a nations GNI measures the amount of income generated by companies nationwide, the level of income determines if the country is rich or poor. GNI involves the total value of all goods and services produced by companies within a country, despite where theyre produced around the world. It is essentially how economically powerful a country is. To me, this means that if the nations GNI is lower than a global firms sales volume, then that nation has no authority or power over the subsidiary firm operating within the nation. 5) Business is business, and every firm has to find ways to produce and market its goods. Why, then, might managers be unable to successfully apply the techniques and concepts they have learned in their own country to other areas of the world? There are a number of reasons why a manager may not be able to successfully apply the specific techniques and concepts learned in his/her

Chapter 1: Homework Tiffany Watt The Rapid Change of International Business BA 421 01

August 30, 2011

own country to other areas. The main reason why the manager may not be successful in doing so is because of the various cultural differences that may exist between the managers own culture and the affiliates culture. To elaborate, each country has its own cultural standards in regards to thoughts, actions, and way of life. These cultural differences strongly influence workplace values and business communication. What may be considered perfectly acceptable and natural in the managers domestic workplace may be considered offensive and/or confusing in the affiliates foreign workplace.

You might also like