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major drivers of globalization and 'reasons to go global'

I have 10 questions for which I need help finding a solution. Please complete as detailed as possible.

Thanks!

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1. Describe the two major drivers to globalization and two examples of 'reasons to go global'. (Please note that the drivers of globalization not the same as the 'reasons to go global.') (0.5 points for each correct answer, total = 2)

2. What are two disadvantages of using a wholly owned subsidiary mode of entry when entering a foreign market? (1 point for each correct answer, total =2)

3. Pick the correct answer from the choices below. (0.5 points)

The__________________________ exchange rate is the rate at which a dealer converts currency on a particular day

a) Forward
b) Speculative
c) Fair
d) Spot

4. Pick the correct answer from the choices below. (0.5 points)

_______________are the costs of exchange

a) Transfer fees
b) Transaction costs
c) Fronting Loans
d) Taxes
e) Royalties

5. The cost of capital in the global capital market is generally higher than the cost of capital in domestic markets? (0.5 points)

True or False?

6. Expatriate failure is the premature return of an expatriate manager to his or her home country. Expatriate failures impact the company, as do near-failures. (0.5 points)

True or False?

7. Describe one reason why a firm would want to use a localization strategy?
Describe one reason why a firm would want to use an international strategy? (2 points total)

8. What are three distinct examples of countertrade? (1 point)

9. Which organization structure best supports international horizontal differentiation? (0.5 points)

a) Functional
b) Hybrid
c) Informal Matrix
d) Geographical
e) Worldwide product division

10. Why would a firm want to implement a geocentric staffing policy? Describe a real world example of a company you think employs a geocentric staffing policy and tell me why you think it does so? (1.5 points)

Solution Preview

1. Describe the two major drivers to globalization and two examples of 'reasons to go global'. (Please note that the drivers of globalization not the same as the 'reasons to go global.')

The first major driver of globalization is technology. Introduction of modern technologies such as internet and advanced telecommunication technologies have propelled globalization as the whole world has become a global village. Secondly, removal of trade barriers and establishment of free trade zones and free trade agreements have also boosted globalization.

The first primary reason to go global is to explore new market opportunities in emerging markets across the world. The second major reason to go global is to take advantage of low cost labor and raw materials or comparative `advantage offered by low cost nations.

2. What are two disadvantages of using a wholly owned subsidiary mode of entry when entering a foreign market?

The main disadvantage of wholly owned subsidiary is that it involves substantial investment by the company in the foreign market. In other words, large investment is at stake in the case of wholly owned subsidiary. Further, if the company has no experience of operating in the local market and fails to adapt to local conditions due to lack of knowledge, wholly owned subsidiaries can become a failure. There is significant risk exposure in the case of wholly owned subsidiary. If political or other kinds of ...

Solution Summary

Describe the two major drivers to globalization and two examples of 'reasons to go global'. (Please note that the drivers of globalization not the same as the 'reasons to go global.')

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