What is the impact for international managers of multinational organizations of the fall of state socialism?
What will be an ideal response?
The fall of state socialism had a ripple effect that was felt in the huge populations of China and the
developing world. As these transition economies grow in importance on the global stage, multinational
organizations and their managers will be confronted with the need to understand the legacy of state
socialism that influences both organizations and managers.
Fundamental to economic transition is the replacement of one set of institutions that govern economic
activity by another. Although managers in transition economies are heavily influenced by the external
influences of the market, they must respond to new institutions that are acceptable in their own society.
In addition to the institutional and organizational context of transition economies, two individual-level
implications for managers in these countries should be noted. First, managerial behavior is influenced by
the extent to which managers have been exposed to formal management training. Although managers
in transition economies often have exceptional educational backgrounds, their exposure to
management education is highly variable.
Also, the cultural profile of managers in these economies is likely to reflect hierarchical and collectivist
value orientations that have a long cultural heritage and have been reinforced by the socialist system.
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Which of the following is a difference between an attribute and a benefit of a product?
a. An attribute is what consumers achieve by using a product, while a benefit is a characteristic of a product. b. An attribute is a temporary part of a product, while a benefit is always associated with a product. c. An attribute is bought by consumers, while a benefit is not bought by consumers. d. An attribute is a feature of a product, while a benefit is what consumers receive by using a product.
What is marketing and why is it important?
What will be an ideal response?
Farmer Brown brings his crop of wheat to the local grain elevator where it is stored along with the grain of several other farmers. A few months later, the grain elevator declares bankruptcy. Who owns the grain? Can Farmer Brown get his grain back? Explain
A company is considering a new project. The CFO plans to calculate the project's NPV by estimating the relevant cash flows for each year of the project's life (i.e., the initial investment cost, the annual operating cash flows, and the terminal cash flows), then discounting those cash flows at the company's overall WACC. Which one of the following factors should the CFO be sure to INCLUDE in the cash flows when estimating the relevant cash flows?
A. All sunk costs that have been incurred relating to the project. B. All interest expenses on debt used to help finance the project. C. The additional investment in net operating working capital required to operate the project, even if that investment will be recovered at the end of the project's life. D. Sunk costs that have been incurred relating to the project, but only if those costs were incurred prior to the current year. E. Effects of the project on other divisions of the firm, but only if those effects lower the project's own direct cash flows.