ULUSLARARASI İŞLETME - Deneme Sınavı - 3

Prahalad (1999) lists four significant trends that must be considered in the current discussions about strategy. 1. Recognizing the changes in the field of strategy: The deregulation and privatization of government-controlled industries, the rapidly changing technological environment, and access to new market opportunities in developing countries such as China, India, and Brazil and in transitioning economies such as those in Central and Eastern Europe offer businesses completely new strategic options and opportunities. Such an expansion provides businesses with new opportunities in the modern global economy. 2. Recognizing the effects of globalization: The globalization of business activities introduces new strategic opportunities and threats. Furthermore, although debatable, the distinction between domestic and international businesses has become obsolete. This is because , in today’s business environment, domestic businesses have to respond to the actions of global businesses in their local markets. Mass customization and quick-response strategies require international businesses to be responsive to local demands. 3. Recognizing the importance of timely response: Today’s competitive environment is so complex that even the validity of annual plans is in question. This is because organizations’ capability to deal with opportunities and threats mainly depends on how fast they take action for these opportunities and threats. 4. Recognizing the importance of innovation: Although innovation has been considered as one of the critical success factors of businesses, it has become increasingly important in today’s dynamic business environment. Successful businesses still have to innovate their products, services, and processes. Furthermore, current innovations are expected to provide businesses with timely, reliable, and quick information about their customers.

The international division structure centralizes all international operations. There are advantages and disadvantages of this structure. First, it reduces the CEO’s burden of the direct operation of overseas subsidiaries and domestic operations. Second, it creates a management team that prioritizes overseas operations. All information, authority, and decision making related to foreign efforts are channeled to this division, so there is one central clearing point for international activities.

Compared to the structure explained above, the global functional structure is less commonly used by international businesses. According to this structure, businesses are organized around the main functions performed by the business (Figure 4.10). For example, such an organizational structure may have departments such as marketing, finance, production, and R&D. It is important to note that these departments and functions vary from one organization to another.

First-mover advantages include catching learning effects, achieving economies of scale, and forging alliances with the most attractive local partner, and setting the standards and rules. The correct answer is B.

These statistics mean that the number of people working abroad roughly accounts for 1% of the world’s population.

International human resources management (IHRM) refers to the planning, recruiting and selecting, training and developing, evaluating, and retaining employees for the international operations of international companies.

A multinational enterprise has its management headquarters in one (or rarely more than one) country, namely the home country (parent country), while also operating in other countries, namely the host countries. 

There are two main tendencies in international marketing strategy identified by similar terms: standardization versus adaptation, or globalization versus localization, or global integration versus global responsiveness. The correct answer is C.

Figure 5.1 demonstrates that home-country is categorized under the regional dimension.

Figure 5.1 demonstrates that leadership can be categorized under the activity dimension.

Figure 5.1 depicts that third country country nationals can be cetagorized under the employee group dimesnion.

Appadurai presents a framework consisting of five conditions under which global flows occur, and he explains the complex nature of the global cultural economy, which develops amidst the disjunctures between economy, culture, and politics. These five conditions are ethnoscapes, technoscapes, financescapes, mediascapes, and ideoscapes. The correct answer is D.

Greater risk exposure: Exposure to political risk and terrorism are major concerns for IHRM professionals and may require higher compensation and security arrangements for employees and their families.

The mix of foreigners versus locals: Foreign subsidiaries are frequently staffed from the home country, the host country, and/or third countries. The mix of staff depends on several factors, including the international experience of the firm, the cost of living in a foreign location, and the availability of qualified local staff.

An MNE is said to be following an ethnocentric approach when strategic decisions are made at the headquarters; and critical positions in both the domestic and foreign operations of an MNE are filled by personnel from the parent country (PCNs) with no or minimal autonomy delegated to the foreign subsidiaries.

When an MNE treats each subsidiary as a distinct national entity, it is said to be adopting a polycentric approach. Acknowledging that the business environment and business practices in another country are different from those at the home country, the host country operation will be allowed more decision-making autonomy and will be staffed primarily by HCNs.

Global area structure is a commonly preferred organizational structure by international businesses. When businesses operate in different geographical areas with different specifications, the global area structure offers a few advantages for international businesses. In this structure, businesses are organized around countries or country groups (Figure 4.9). The departments and divisions are responsible for the whole functions and products in a given geographical area.

The regiocentric approach is a mix between the polycentric and the geocentric approaches.

Ideoscapes are political, and they indicate mainly the spread of the Enlightenment worldview, which consists of notions like democracy, welfare, freedom, rights, and sovereignty. The correct answer is A.

Table 5.1 shows that the primary orientation of ethnocentric approach is home replication.