Fin 6644 Essay

5884 Words Sep 26th, 2012 24 Pages
Corporate MBA - FINANCE 6644: Global Financial Strategy August 2012

Final Exam Review Questions
Instructions

A. Please be concise and precise in your answers.

B. Practice answers for closed book, class room setting.

C. Suggested length: minimum one page [1.5 spacing]; maximum two pages per question.

D. You would answer 3 questions and 2 Problems in two hours in final exam.

Questions

1. Ethical Standards

a. Can a multinational firm adopt varying ethical standards [such as with regard to product safety (Pinto), employee benefits (Nike) and “kickbacks” to win business (HP)] in its global operations? Why or Why Not? Discuss in depth based
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In some situations, the product becomes an item that is imported by its original country of invention. Eventually, as the good or service move through the product life-cycle to maturity, production moves to a developing country; allowing for cost-efficiency for the innovating nation. An example of such a product would be the development of the PC in relativity to the US. In the new product stage it remained soley as a good consumed in the US, but as it reached maturity foreign demand grew in developed nations, and with it mass production techniques and exportation. When it reached the standardization product stage, production moved to developing countries to export to developed nations. This theory supports that outsourcing and off-shoring allow for a comparative advantage. The drawbacks and implications of offshoring and impact on the country of origin are:

1. cost of off-shoring, loss of job/unemployment, cost of providing education and training to gain skills needed for better job 2. ability of displaced workforce to relocate/ cost of assistance, 3. cost of education for 1 yr or two , preparation for new job

d. What strategies should corporations adopt to minimize the impact of off-shoring on its employees?

Corporations should develop outplacement services/programs and severance packages including compensation, skills training and additional

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