Question & Answer

How do speculators use call options? Describe the conditions under which their strategy would backfire. What is the maximum loss that could occur for a purchaser of a call option? (LO3)

Describe the general differences between a call option and a futures contract. (LO1)

Describe how the new purpose of a corporation as defined by the Business Roundtable differs from the previously defined corporate purpose.

Identify various factors that shape a manager’s ethical decision making, including levels of moral development.

Explain the utilitarian, individualism, moral rights, justice, and practical approaches for making ethical decisions.

: Describe how ethical behavior relates to behavior governed by law or free choice.

      : What do you recommend Adam do to increase production in a business setting that does not seem to value high production?

1.      : What social values are present in Guitarras Torres, that seem different from U.S. social values (see Exhibit 4.4 and Exhibit 4.5)? Explain.

1.      : How accurate is Adam Wainwright’s analysis of the situation at Guitarras Torres? Do you think craftsmanship is incompatible with increasing productivity in this company? Why or why not?

1.      : Do the clinical trials in Albania, and if the drug is approved, use part of the profits to set up a compassionate use program in Albania, even though setting up a distribution system and training doctors to administer the drug, monitor patients for adverse effects, and track results will entail considerable expense.

1.      : Do the clinical trials in the United States. Even though it will certainly be more expensive and time-consuming, you’ll feel as if you’re living up to the part of the Hippocratic oath that instructs you to “prescribe regimens for the good of my patients according to my ability and my judgment and never do harm to anyone.” 

1.      : Do the clinical trials in Albania. You’ll be able to bring the drug to market faster and cheaper, which will be good for BB Biotech’s employees and investors and good for the millions of people who suffer from anxiety attacks.

What Are Your Social Values?

1.    How might the social value of low versus high power distance influence how you would lead and motivate employees? What about the value of low versus high performance orientation?

1.    : Which style of communicating do you think would be most beneficial to the long-term success of a U.S. company operating internationally—high-context or low-context communications? Why?

1.    : Two U.S. companies are competing to take over a large factory in the Czech Republic. One delegation tours the facility and asks questions about how the plant might be run more efficiently. The other delegation focuses on ways to improve working conditions and produce a better product. Which delegation do you think is more likely to succeed operating the plant?  Why? What information would you want to collect to decide whether to acquire the plant for your company?

1.    : If you were to interview someone for a position as an international business executive, what are three questions you think it would be important to ask? Explain your reasoning.

1.    : Should a multinational organization operate as a tightly integrated, worldwide business system, or would it be more effective to let each national subsidiary operate autonomously? Why?

1.    : Do you think that it’s possible for individuals to develop a global mind-set if they never live outside their native country? Explain.

1.    : Somnio, a start-up customizable running shoe company in California, decided to start selling its products around the world from the very beginning. In general terms, name some of the challenges that a start-up company such as Somnio might face internationally.

1.    Do you think it is realistic that BOP business practices can have a positive effect on poverty and other social problems in developing countries? Discuss how those effects might occur.

1.    : What, specifically, would the experience of studying in another country contribute to your skills and effectiveness as a future manager in your own country?

Identify today’s international trade alliances and discuss how they affect international companies.

6 Explain differences in social values and communication challenges across country cultures.