International Management: Culture, Strategy, and Behavior 11th Edition by Fred Luthans Test bank

business firms to lower their costs by conducting business in one uniform currency.
With access to the entire pan-European market, large multinational companies (MNCs) can now
achieve the operational scale and scope necessary to reduce costs and increase efficiencies. Even
though long-standing cultural differences remain, and the EU has recently experienced some
substantial challenges, including the planned exit of the United Kingdom in 2019 (coined "Brexit"),
the EU remains more integrated as a single market than the North American Free Trade Agreement
(NAFTA) and its successor, the United States-Mexico-Canada Agreement (USMCA), the U.S.-
Dominican Republic-Central American Free Trade Agreement (CAFTA-DR), or the allied Asian
countries.
References
Essay Learning Objective:
01-01 ASSESS the
implications of
globalization for
countries, industries,
firms, and
communities.
 76.
Award: 10.00 points
Discuss the factors that contributed to Japan's phenomenal economic success.
During the 1970s and 1980s, Japan's economic success had been without precedent. The country
had a huge positive trade balance, the yen was strong, and the Japanese became recognized as
the world leaders in manufacturing and consumer goods. Analysts ascribe Japan's phenomenal
success to a number of factors. Some areas that have received a lot of attention are the Japanese
cultural values supporting a strong work ethic and group/team effort, consensus decision making,
the motivational effects of guaranteed lifetime employment, and the overall commitment that
Japanese workers have to their organizations. However, at least some of these assumptions about
the Japanese workforce have turned out to be more myth than reality and some of the former
strengths have become weaknesses in the new economy. Some of the early success of the
Japanese economy can be attributed to the Ministry of International Trade and Industry (MITI).
Another major reason for Japanese success may be the use of keiretsus. Being able to draw from
the resources of the other parts of the keiretsu, a Japanese MNC often can get things done more
quickly and profitably than its international competitors.
Despite setbacks, Japan remains a formidable international competitor and is well poised in all
three major economic regions: the Pacific Rim, North America, and Europe.
References
Essay Learning Objective:
01-03 EXAMINE the
changing balance of
global economic
power and trade and
investment flows
among countries.