Big Picture A in Focus: ULOa.

Let’s Check
Let us try the following activities to check your understanding in this unit.
Activity 1.
True or False. In the space provided, write T if the given statement is true and F if false.
(One point each).
1. There are three essential types of cross-border investment and these are
international portfolio investment, foreign direct investment and international aid.
Answer: F
2. It is a foreign-market entry strategy that gives investors partial or full ownership of a
productive enterprise typically dedicated to manufacturing, marketing, or management
activities.
Answer: T
3. A freight forwarder is a specialized logistics service provider that arranges
international shipping on behalf of importing firms, much like a travel agent for cargo.
Answer: F
4. Country risk also includes laws and regulations that potentially hinder company
operations and performance.
Answer: T
5. It is right to say that when engaging into globalization the firm is expected to
face risk.
Answer: T

Let’s Analyze
Let us try the following activities to know how deep your understanding on the topics in
this unit.
Activity 1. Case Problems. Read the following cases carefully and answer the questions
indicated after each cases.

Case Questions
1. What is the nature of the international business environments Vodafone faces?
What types of risk does the firm face?
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2. How has Vodafone benefited from expanding abroad? What types of advantages has
the company obtained from its international expansion? What advantages acquired
overseas can help Vodafone maintain its leadership in Europe?
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3. What is the underlying rationale for Vodafone’s expansion strategy to invest in the
number two operator of a target country, instead of the incumbent number one?

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4. Why did Vodafone expand first towards the U.S., through the acquisition of45% of
AirTouch’s share, although there was no technology compatibility between North
America and Europe, making roaming and other synergies between the UK and U.S.
networks impossible? What competences did the company have that it could use in this
venture?

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5. Why did the German government and public resist the acquisition of Mannesmann by
Vodafone in late 1999? Are there any similarities with the lack of success of the
company to acquire a local Chinese operator, or a stake in China Mobile in recent
years?
THE EMERGENCE OF BORN GLOBAL FIRMS
Questions
1. What are the main characteristics of born global firms?
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2. What drivers and causes of globalization have allowed born global firms such as
Instagram to internationalize at or near their founding?
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3. What advantages do you think a young company can gain by entering international
markets soon after its founding?
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In a Nutshell
In this part you are going to jot down what you have learned in this unit. The said
statement of yours could be in a form of concluding statements, arguments, or
perspective you have drawn from this lesson. The first one is done for you.
1. Engaging into international business and trade helps a specific country not just in
promoting its products and services but also helps boost its economy. This will also give
other benefits such as opening of new jobs to the host country where a specific
business is operating, introduction of new products and services to the
market, etc. Indeed, international business and trade is one of the drivers in maintaining
economic stability.
Now it’s your turn!
2.
3.
4.
5.

Big Picture A in Focus: ULOb.

Let’s Check
Let us try the following activities to check your understanding in this unit.
Activity 1. True or False. In the space provided, write T if the given statement is true and
F if false. (One point each).
1. Ties among individuals are highly valued in collectivist societies.
Answer: T
2. Managers with a geocentric orientation possess a cosmopolitan view and acquire
skills for successful social behavior in cross-cultural encounters.
Answer: T
3. Attitudes are similar to opinions and are consciously held and may be based on
logical facts.
Answer: F
4. Culture is passed from generation to generation may it be through our parents,
teachers, mentors, peers, leaders and the like.
Answer: T
5. Culture can be changed, however, it will need a through process.
Answer: T
Let’s Analyze
Let us try the following activity to know how deep your understanding on the topics on
this unit.
Activity 1. Application of New Knowledge: Debrief: Communication, Reflective
Thinking, Ethical Reasoning, Multiculturalism and Diversity.
General Instructions and Reminders:
Case 1 - Suppose you get a job at Kismet Indemnity, a life insurance company. In its
45-year history, Kismet has never done any international business. Now its president,
Randall Fraser, wants to expand abroad. You have noted in meetings that he seems to
lack much awareness of the role of culture. Write a letter to him in which you explain
why culture matters in international business. Be sure to speculate on the effects of
various dimensions of culture on sales of life insurance.
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Case 2 - Ethical Dilemma: Suppose you work for a multinational firm and are posted to
Bogota, Colombia. After renting a house in a posh neighborhood, you hire a full-time
housekeeper to perform household chores, a common practice among wealthy
Colombians. A colleague at work tells you that local housekeepers are typically poor
women who live in Bogota’s slums and earn about $200 a month. As an executive, you
feel guilty about paying such a cheap wage when you can afford much more, but for
cultural and socioeconomic reasons, your colleague insists you cannot pay more than
the going rate. Doing so might embarrass your housekeeper and risk upsetting the
economic balance in her community. Analyze this dilemma. Do you pay your
housekeeper the customary local rate or a higher wage? Justify your decision. Can you
think of any creative solutions to this dilemma?
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In a Nutshell
In this part you are going to jot down what you have learned in this unit. The said
statement of yours could be in a form of concluding statements, arguments, or
perspective you have drawn from this lesson. The first one is done for you. 1. In
engaging into international business and trade, knowing the country’s culture where
your business operates is of paramount concern for this will be our basis on what
strategies we will undertake. More so, by studying the existing culture, our business will
be able to adjust our business operation to meet what the customers really need and
want.
Now it’s your turn!
2.
3.
4.
5.

DALEON, AGUSAN MAE A

BSA 2ND year
CBM123 (2214)