Chapter 9: Challenges in International Business ( Final)

Question 1

Common characteristics of a common enterprise

Answer 1

• operating a sales organization, mft plant, distribution centre, licensed business, or subsidiary in at lease two countries
• a big portion of your revenue is from foreign markets
• operations are based in a shared ownership and a network of strategies, info, expertise, capital, and resources

Question 2

MNE Host country benefits

Answer 2

1. create new jobs
2. joint ventures with local enterprises and companies
3. tech. transfer
4. develop new industry sectors
5. improve industrial output and productivity
6. improve Std. of living

Question 3

Sweatshops

Answer 3

• a tenant in which the head of the family employs outsiders in the mft of garments for some wholesaler or merchant tailor

Question 4

sweating

Answer 4

a term designating a condition of labour that yields the maximum amount of work possible per day for a minimum wage, and wherein the ordinary rules of health and comfort are disregarded

Question 5

The market - basic view of sweatshops

Answer 5

the truce (agreement b/w enemies ) regarding global labour std between critics and corps. harm 3rd world countries

Question 6

what are ethical labour stds for international labour?

Answer 6

• home-country std - eliminates the advantage of outsourcing
• “living wage” std - difficult to pinpoint a baseline
• classical liberal std. - freely chosen by workers
• market std - chosen by consumers

Question 7

Multinational companies choose between which developing country to choose

Answer 7

” race to the bottom”

• unconscionable wages
• immiserization - carl marks - Bangladesh is putting pressure on other countries to lower to wages to make t- shirts
• widening the gaps between the rich and the poor
• collusive with repressive regimes

Question 8

the market view: sweatshops

Answer 8

• not a developing country issue, it is a lack of oversight and regulation issue, mainly among suppliers
• if you raise min wage - that means that the employer will have less money and therefore will not be able to hire as many people

Question 9

Arguments for Sweatshops

Answer 9

• workers in urban, formal sectors of developing countries make more than workers in