international busniess

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LOOK THE CASE THEN ANSWER THE FOLLOWING QUESTIONS. And 25 multiple choice.



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ANSWER THE FOLLOWING QUESTIONS 1. CASE STUDY: Benetton in the fast lane Famous for its shocking advertisements Benetton started in 1955 as a small business. Lucianno Benetton and his family started by selling colored sweaters door to door in Treviso, Italy. Over time a regional network of family, friends and agents set up a closely monitored set of distinctive retail outlets. Over a 15-year period Benetton built up 300 affiliated but independently owned outlets in Italy and a factory with new methods to dye and condition wool. Benetton was not directly involved in the retail outlets, who received high quality products at low costs. Part of the manufacturing savings are realized by outsourcing to neighbouring subcontractors. Today Benetton has kept this loose network of independent production subcontractors and distribution agents but has now built up to a global network of over 7,000 retail stores. Of these, Benetton owns only about 50 flagship stores and the great majority are operated by independent entrepreneurs. Over 80 per cent of production still takes place in Italy and the company is still 72 per cent owned by the Benetton family. Benetton is one of those successful global companies that was partly successful because its production and design concept was built on a strong home base. It then expanded the marketing end of its business through closely monitored (but not owned) independent stores. These were able to use the Benetton brand name and distinctive colours and were supported by clever international advertising. Benetton does not advertise its clothes directly. Rather its advertisements are for a “lifestyle”. The “United Colors of Benetton” ads are designed for a homogeneous global consumer interested in fast cars and a fast lifestyle. Benetton goes in for cutting-edge advertising that grabs public attention. This creates an image of new-age awareness, as Benetton advertising has featured Formula I cars, AIDS, high art , and “attitude”. How well this plays out globally is uncertain. For example, in 1988 Benetton had 700 retail stores in the US but by 1995 it only had 150. Is this because Benetton has too European an image to succeed in middle America? How can an Italian family firm understand the American lifestyle from its European bases? QUESTIONS 1) Is Benetton a multinational enterprise? 2) What are the country-specific factors that have helped Benetton be a success? 3) What are Benetton’s firm-specific advantages? 2. Write short notes on the following: a) Vision and Mission b) Porter’s five forces model of competition d) SWOT analysis 3. A) Why do companies import goods rather than produce them in their own country? Provide two reasons? 3. B) What is diversification and how may diversification help a company? MULTIPLE CHOICE 1. When country A’s currency is weak relative to country B’s currency, which of the following encourages foreign investment in A? a. A’s exports are more expensive b. A’s imports are cheaper c. A’s exports are cheaper d. B’s exports are cheaper 2. The factors of production include a. land b. labour c. capital d. all of the above 3. When a company makes a product or service internationally, it must formulate a number of business decisions called a. marketing mix b. marketing goals c. marketing strategies d. marketing branding 4. In an international skills inventory, tolerance and sensitivity to others is called a. adaptation skills b. coping skills c. work effectiveness skills d. intercultural communications skills 5. Which of the following theories helps marketers understand the behaviour of consumers when it comes to needs? a. Thorndyke’s theory b. Maslow’s hierarchy c. Notman’s emotional theory d. Wilson’s rational theory 6. Translation services, interest charges, metric labelling requirements, and local taxes are part of a. retail value b. hidden costs c. the exporter’s fee d. the importer’s fee 7. In which of the following types of investment does an investor buy a share of a foreign company without a controlling interest in that company? a. private-sector b. portfolio c. public-sector d. foreign direct 8. A bank document assuring that a business has enough funds on deposit to cover an international transaction is called a a. bank draft b. letter of credit c. money order d. line of credit 9. When a multinational company (MNC) seeks total integration of its global operations, it is a. ethnocentric b. polycentric c. geocentric d. regiocentric 10. The rules of correct or appropriate behaviour when meeting with officials or business people are called a. manners b. common sense c. guidelines d. protocol 11. Self-sufficiency is the ability to provide for all of your basic needs, such as a. allowances, books, and savings b. all luxury items c. food, clothing, shelter, and water d. all of the above 12. Which of the following is a particular challenge for a global company? a. maintaining quality product standards throughout the company’s facilities b. saving on raw materials and labour c. ability to market a product worldwide d. worldwide access to knowledge and ideas 13. Political risk can take the form of which of the following? a. financial gain b. increased market share c. technical breakdown d. all of the above 14. Charges for the transportation of goods can include one or more of the following components: a. the shipment method b. the freight forwarder c. the volume of the goods d. all of the above 15. If each of the following represents a difference between the culture of plant employees and the culture of a foreign plant manager, which difference is most serious? a. work hours b. work ethic c. wages d. scheduling 16. When you are underpaid, you are paid enough to live on. a. True b. False 17. What is a border? (Standard I-International Business Vocabulary and Definitions) a. Start or end of something and is invisible, like a boundary or limit b. A graph c. A line d. A division 18. What is the difference between domestic and International trade? a. International trade is country-to-country while domestic trade is within a nation's borders. b. International trade is within one country's borders while domestic trade is between two countries. c. International trade is country-to-country while domestic trade is within a nation's houses. d. They are the same; there is no difference 19. The process of using natural resources, materials, or finished products to satisfy human wants or needs is called.... (Standard I-International Business Vocabulary and Definitions) a. Export b. Consumption c. Resources d. Trade 20. This word comes from the base 'busy' + ness, or the act of being busy with money, financial, transactions, sales, and purchasing. (Standard I-International Business Vocabulary and Definitions) a. Banking b. Salesperson c. Business d. Financial institution 21. What is the currency of all of Europe? a. Euro b. Yen c. U.S. Dollar d. Yuan 22. What is the U.S.'s main export? a. Horses b. Cotton c. Meat d. Cars 23. When you see a coin from Canada or Australia with Queen Elizabeth on it, what does that mean about Canada and Australia? a. That Canada and Australia were colonized by England b. That Canada and Australia love Queen Elizabeth c. That Canada and Australia were once one country d. That Queen Elizabeth is their president 24. If 7 U.S. Dollars equals to 97 Mexican Pesos then how many Mexican Pesos is equal to 28 U.S. dollars? a. 398 Mexican Pesos b. 388 Mexican Pesos c. 378 Mexican Pesos d. 368 Mexican Pesos 25. If 1 U.S. Dollar equals to 6.32 Chinese Yuan Renminbi, then how many Chinese Yuan Renminbi is equal to 6 U.S. dollars? a. 72.93 Chinese Yuan Renminbi b. 37.92 Chinese Yuan Renminbi c. 29.37 Chinese Yuan Renminbi d. 97.32 Chinese Yuan Renminbi
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Report: International busines1

International busines1
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Running Head: INTERNATIONAL BUSINESS

International business
Name:
Institutional Affiliation:
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INTERNATIONAL BUSINESS

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International business
Benetton in the fast lane

Answer to the questions about Benetton
Benetton stands out as a multinational enterprise. This conclusion comes from the fact
that the firm operates a global network of retail stores. Although the firm does not own or
directly control all the international stores, they all represent the internal figure and products
made by the company based in Italy. A multinational corporation must comprise of assets among
other facilities in at least one nation other than its original country. The company gets its success
from the fact that the home country provides raw materials readily and also at lower prices on the
overall scale. Further, the home country population champions for the promotion of their local
companies. Besides, the company deals with clothing and fashion which attracts the home
country`s population. The company comprises of multiple firm-specific advantages. First, the
firm basis of its operations from a central point. Besides, being a family-owned busi...


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