Question & Answer

Define legal–political risk and give an example of how it can affect an international corporation.

Define outsourcing and the market entry strategies of exporting and partnerships.

Describe the characteristics of multinational corporations and how they might employ the bottom-of-the-pyramid concept.

 Discuss how the international landscape is changing, including the growing influence of China and India.

: Explain globalization and why a global mind-set is so important for managers working internationally.

1.      In which quarter of Exhibit 3.7 would you place Cam? What are some steps that you would recommend Cam consider to better connect with the employees who report to him?

1.      What additional investigation might Whitley and Vinson undertake before settling on a plan of action toward Cam?

1.      : Do you think Vinson’s desire for changes in culture are related to changes in the external environment? Explain.

1.      Talk to the company’s legal counsel and contact the Strategic and Competitive Intelligence Professionals for guidance. Then, with their opinions and facts to back you up, go to your boss.

1.      Confront your boss privately and let him know that you’re uncomfortable with how the documents were obtained and what possession of them says about the company’s culture. In addition to the question of the legality of using the information, point out that it is a public relations nightmare waiting to happen.

1.      : Go ahead and use the documents to the company’s benefit, but make clear to your boss that you don’t want him passing confidential information to you in the future. If he threatens to fire you, threaten to leak the news to the press.

1.      Why do you think Nicola and Steve are on the defensive? Might the emphasis on core leadership behaviors be handled in a different way? What do you suggest?

1.      : Do you think a more participative and open culture can be imposed on managers with value statements and training sessions? Why or why not?

1.      : Are Connie and her staff on the right track to avoid manager mishaps by defining a new set of leader rules and core values and imposing it by fiat, from the top down?

1.      : Press the board to devise a more comprehensive set of selection criteria—including test results, but also taking into account supervisory experience, ability to motivate employees, and knowledge of agency procedures—that can be explained and justified to the board and to employees.

1.      : Give the job to the candidate with the highest score. You don’t need to make enemies on the Civil Service Board, and, although it is a bureaucratic procedure, the test is an objective way to select a permanent placement.

1.      : Ignore the test. Cheryl has proved herself via work experience and deserves the job.

1.      : Meet with Pate and the employee to try to resolve the current issue, and then start working with Miranda and other senior managers to develop stronger policies regarding sexual harassment and treatment of employees, including clear-cut procedures for handling complaints.

1.      : Launch a full-scale investigation of employee complaints about Pate and make Pate aware that his documented history over the past ten years has put him on thin ice.

: Ignore the problem. Pate’s contributions to new product development are too valuable to risk losing him, and the problems over the past ten years have1.      always worked themselves out anyway. There’s no sense starting something that could make you look bad.

1.    What do you think the ideal ranking would be of the three skills for an effective manager?

1.    Why do you think the three skills are all needed to be an effective manager? Give examples of times when each one is used.

Write a short essay explaining how financial futures might reduce systemic risk and how financial futures might increase systemic risk within financial markets. 

Assume short-term and long-term interest rates are very low. You believe that the Fed will use a monetary policy to maintain these interest rates at a very low level. Do you think financial institutions that could be adversely affected by a decline in interest rates would benefit from hedging their exposure with interest rate futures? Explain. (LO2)

Consider the prevailing conditions for inflation (including oil prices), the economy, the budget deficit, and other conditions that could affect the values of futures contracts. Based on these conditions, would you prefer to buy or sell Treasury bond futures at this time? Would you prefer to buy or sell stock index futures at this time? Assume that you would close out your position at the end of this semester. Offer some logic to support your answers. Which factor is most influential for your decision regarding Treasury bond futures and for your decision regarding stock index futures? (LO2, LO3)