86. Having valuable, unique, and hard-to-imitate capabilities may be advantageous in doing business globally. However, what is the problem with trying to maintain that advantage?
ANSWER:
There are many possible ways to answer this question. Some may argue that it is much like being on a treadmill in which one must keep moving forward just to stay in place. What is valuable today may lose its value as changes occur in technology and markets. Other firms in other parts of the world may develop alternatives that imitate or even exceed one’s capabilities or render them no longer unique. As firms expand production around the world, they may in fact be helping to train others to compete with them.
87. Describe the way in which a firm might use a balanced scorecard.
ANSWER:
There are many possible ways to answer this question. A balanced scorecard should effectively and efficiently convey to strategists a summary of information that answers the following questions, among other: How do customers see us? What must we excel at? Can we continue to improve and create value? How do we look to shareholders?
88. Why is there a backlash against globalization, and how might aspects of that backlash actually enhance globalization?
ANSWER:
As the text points out, many incorrectly assume that globalization is a new force that is enabling emerging economics to take away both low-end manufacturing jobs high-end jobs as well while enabling MNEs to destroy local companies, local cultures and values as well and the environment. At the same time, developments such as reverse innovation have boosted the emerging economies and demonstrated that the flow of innovation can go in both directions. To the extent that MNE’s can effectively counter misunderstandings and positively respond to valid concerns, they may be able prevent or overcome barriers to global trade and investment.
89. How is semiglobalization different from globalization and localization?
ANSWER:
The text points that semiglobalization is a perspective that suggests barriers to market integration at borders are high but not high enough to completely insulate countries from each other. It calls for more than one way of strategizing around the globe as opposed to the standardization that is characteristic of globalization and the isolation that is typical of localization. Semiglobalization does not advocate a single right strategy but engages markets on their terms.
90. As you examine the current political, social, and economic environment of your country and the world as of the moment you are reading the text, what is your estimate of the extent to which globalization will increase or decrease in the short run? In the long run?
ANSWER:
The response is likely to be specific to the national and cultural background of the student and the major news events at the time the student is taking the course. The text has shown that there is a pendulum that tends to swing back and forth in regards to the acceptance or resistance of globalization but the long run trend appears to be moving toward greater globalization. However, the future is not always like the past and even long-term trends can be reversed. As a result, some students may have reasons why they feel that there will be increasing barriers to globalization in the future. Whatever the response, this question is one in which the answer is not as important as the thought process that goes into it.