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Five Business Management essay questions

GLOBAL STRATEGIES

1. For the past eight years the Kellogg Company has struggled to get permission to put the same vitamins in all its European corn flakes. In theory, Europe completed building a unified market in 1993 with the birth of the European Union, but so far it has not applied to vitamins in cereals.

Denmark doesn't want vitamins added, fearing that cereal eaters who already take multivitamins might exceed recommended daily doses, which some experts say can damage internal organs. The Netherlands officials don't believe either Vitamin D or folic acid is beneficial, so it doesn't want them added. Finland likes more Vitamin D than other countries to help Finns make up for sun deprivation. And the list goes on.

Question:
Which major facet [component] of the globalization definition is Kellogg
trying to implement? Explain.

2. Not long ago the World Trade Organization [WTO] told China that it could no longer force providers of American books, music and films to distribute their goods through a local [Chinese government run] "partner." Foreign companies saw the Chinese rule as an impediment to reaching a broad Chinese audience with their products. The Chinese market is flooded with pirated CD's and DVD's whose creators receive no compensation.

In the midst of the global recession, China took steps to protect its industries.
It gave tax rebates to exporters and barred government entities from buying
foreign goods if there were domestic substitutes available.

While the WTO has ruled several times against China in recent years, China is
also turning to the WTO to defend its interests. It challenged for example an
American ban on Chinese poultry imports.

Question:
What do these trade developments tell you about globalization and the role of the WTO?

3. You are an American traveling on business in Egypt. You have a 9am business meeting appointment, but your Egyptian counterpart does not show up until 10am, and does not apologize. Explain why this behavior is apparently acceptable in Egypt. Would it be acceptable behavior in the United States? Why or why not?

4. The United States and other western countries have been trying to deal with what many call "Chinese currency manipulation" for years. This is the process where the Chinese government pegs their currency to stay positioned "below" the value of the U.S. dollar.

Question:
Setting politics aside, why is the United States Congress again turning up
the heat on this issue, and pushing the Administration "to do something"?
Why has China been intervening [which they deny] "in currency markets
to halt the rise of their currency, against the value of foreign currencies?

5. True or false - price discrimination is unethical and illegal. Explain your answer.

Solution Preview

1. For the past eight years the Kellogg Company has struggled to get permission to put the same vitamins in all its European corn flakes. In theory, Europe completed building a unified market in 1993 with the birth of the European Union, but so far it has not applied to vitamins in cereals.

Denmark doesn't want vitamins added fearing that cereal eaters who already take multivitamins might exceed recommended daily doses, which some experts say can damage internal organs. The Netherlands officials don't believe either Vitamin D or folic acid is beneficial, so it doesn't want them added. Finland likes more Vitamin D than other countries to help Finns make up for sun deprivation. And the list goes on.

Question:
Which major facet [component] of the globalization definition is Kellogg trying to implement? Explain.

Kellogg is trying to implement a global strategy. In practice it has tried to get permission to put the same vitamins in all its European corn flakes. Usually, in the context of globalization, a firm seeks to implement a global strategy where there is strong demand for cost reduction and low demand for localization. The different demands of the governments of Netherlands and Denmark make it difficult for Kellogg to launch a common product for the European market. If Kellogg does not succeed in implementing its global strategy, it will be compelled to manufacture different products for different countries. It will not be able to sell a standardized product worldwide.

2. Not long ago the World Trade Organization [WTO] told China that it could no longer force providers of American books, music and films to distribute their goods through a local [Chinese government run] "partner." Foreign companies saw the Chinese rule as an impediment to reaching a broad Chinese audience with their products. The Chinese market is flooded with pirated ...

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