International Business

1. What constraints can organized labor impose on the strategic choices of an international business? How can that business limit these constraints? 2. Do you think the IMF policy of a tight monetary policy and reduced government spending is the appropriate response for nations experiencing a currency crisis? What are the implications for international business? 3. Discuss the relative merits of a fixed and floating exchange rate. From an international business perspective, which criteria is the most important relative to a choice between systems and why? 4. Your business must decide whether to make a component part in house or outsource it to an independent supplier. These potential suppliers are in countries whose currency is expected to increase against the US dollar. What would you recommend and why? 5. What is the link between an international business strategy and its human resource policies, with regard to expatriate employees and their compensation? 6. Why has the global capital market grown so rapidly in recent years? Will this trend continue? Why or why not? 7. You are the financial officer of a US business conducting operations in Mexico. The business has been financed by loans obtained from US banking institutions. You have been informed the Peso is expected to drop by 30 percent against the US dollar over the next year. What actions, if any, should you take and why? 8. What organizational problems are present when utilizing a transnational strategy and why? 9. Licensing proprietary technology to foreign competitors is the best way to give up a firms competitive advantage. Discuss whether you agree or disagree with this statement. 10. Discuss the pros and cons of licensing proprietary technology to a foreign competitor. 11. What organizational structure is most appropriate for a business that is involved in an industry where a global strategy is most appropriate and why?



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