International Management Midterm

Front 1

What Ethical Issues are MNCs accused of?

Back 1

1. Corruption

2. Child Labour

Other- Human rights, environment, safety, dumping

Front 2

What are corruption and child labour function of?

Back 2

Poverty, lack of education, fair trade

Front 3

What is a symptom and what is a problem?

Back 3

A symptom is the result caused by a problem

Front 4

What are the two categories of corruption?

Back 4

1. Corrupt Individual

2. Corrupt Organization

Front 5

Corruption from MNC's viewpoint

Front 6

What are the 6 moral philosophies?

Back 6

1. Deontological- Rule based

2. Teleological- Consequence based

3. Utilitarian- Net expected benefit

4. Contractarian- Law of the land, contracts

5. Pluralism- No contracts, do the right thing

6. Rawls Social Justice Theory- fairness, peace and harmony with a little contract

Front 7

What are the options to deal with corruption for MNCs?

Back 7

1. Stay away

2. Embrace the local standards

3. Maintain High Global Standards

Front 8

What are the affects of corruption at a macro level?

Back 8

- Education

- Build capability

- Government enforce moral guidelines

- Government policies for fair trade

Front 9

What are the affects of corruption at a micro level?

Back 9

Strategic- MNCs have power

Mode of Entry

Ethics Officer

Front 10

What is the Harkin Bill?

Back 10

An act first proposed in 1992 to prohibit the importation of product produced through chile labour

Front 11

What is the UN Global Compact 5?

Back 11

Abolish Child Labour

Front 12

What's minimum age to work?

Back 12

13, 15, 18 (- 1 for developing countries)

Front 13

What is UN Global Pact 10?

Back 13

Work against all forms of corruption

- Corruption, extortion, bribery

Front 14

What are steps to fight corruption?

Back 14

Internal- anti corruption policies within organization

External- Report corruption

Collective- Join forces

Front 15

What are some trends against corruption and child labour?

Back 15

ØTransparency International

ØForeign Corrupt Practices Act (US) ØCorruption of Foreign Public officials (Canada)ØOECD Anti-bribery InitiativesØHarkin Bill – Trade Ban

ØILO Convention on Minimum Age138

ØUN Global Compact (UNGC 2007)

Front 16

What are 4 strategies for globalization?

Back 16

1. International

2. Multidomestic

3. Global

4. Transnational

Front 17

What are the types of structures?

Back 17

1. International Division Structure

2. Area Division Structure

3. Multidomestic Affiliate Structure

4. Global Product Division

5. Transnational (Hybrid) Structure

Front 18

International Division Structure

Back 18

- no duplication

- HO support sales

- easy to negotiate abroad with gov

- dedicated international division

Front 19

Area Division Structure

Back 19

- efficient

- responsive

- duplication

Front 20

Multidomestic Affiliate Structure

Back 20

Front 21

Global Product Division

Back 21

- vertically integrated

- efficient

Front 22

Transnational (Hybrid) Structure

Back 22

Front 23

What are the dimensions of evolution?

Back 23

-Geographic Expansion

- Line of business diversification

- Functional Migration

Front 24

What is geographic expansion?

Back 24

Geographic proximity- expand outwards

Cultural Similarity- target similar culture

Similarity in economic development- similar economic condition

Front 25

What is line of business diversification?

Back 25

1st add the strongest single LOB

2nd with less competitive advantage

3rd with no competitive advantage

Front 26

What is functional Migration?

Back 26

Shifting business functions abroad

Front 27

What should be analyzed before buying a firm?

Back 27

-Products of the firm

- Financial health

- Management

- Geographical exposure

- Stock market valuation

Front 28

What is economies of scope?

Back 28

- transferring competencies

- Sharing infrastructure

- Access to patents, growth, risk sharing

Front 29

What is PE ratio?

Back 29

Price/earnings

lower the better

Front 30

What is PEG ratio?

Back 30

(Price/earnings)/growth rate

> 1 is bad

< 1 is good

Front 31

What are Managerial Motives to M&A?

Back 31

Conflict of interest

Overconfidence

Main difference

Front 32

What are types of takeovers?

Back 32

- take over

- merger

- acquisition

- amalgamation

- consolidation

Front 33

What are types of M&A activities?

Back 33

Vertical

Horizontal

Product extension

Market extension

Front 34

What is corporate inversion?

Back 34

Way to reduce tax by keeping cash abroad then borrowing money

Front 35

What is IJV?

Back 35

>1 joined together differ nationalities

Front 36

What are 4 objectives of IJV formation?

Back 36

Front 37

What is consortia?

Back 37

Pooled resourses