ch01: Globalizing Business
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1. SchulzRobb Inc., a company based in England, engages in foreign direct investment in other countries such as India,
Japan, and Brazil. SchulzRobb is a multinational enterprise.
2. Business leaders should focus on the top two tiers of the global economic pyramid because the base of the pyramid
(BoP) does not offer many economic opportunities.
3. Individuals who make less than $2000 a year comprise the base of the pyramid (BoP).
4. George and John are both managers at Routen Plan Inc. based in Washington, but only George receives a significant
international premium compensation as he is an expatriate manager of Routen Plan, Germany.
5. Formal institutions include culture, ethics, and values.
6. An Ecuadorian firm doing business in a neighboring, Spanish speaking, Latin American country faces a lower liability
of foreignness than a Dutch firm doing business in the same country.
7. Croulene Corp, an American company, starts its operations in China. Croulene has an inherent disadvantage in China
because of its nonnative status. This is an example of a liability of foreignness.
8. According to the Pendulum view on globalization, globalization is very recent and one-directional.
9. LindaLoel Corp. extensively uses the technique of scenario planning. Scenario planning is the identification and