AC Strategy Business Ethics and Globalization Questions

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1. Why do price wars often erupt in certain industries (such as the automobile industry), but less frequently in other industries (such as the diamond industry)? What can a firm do to discourage price wars or be better prepared for price wars?
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2. How does the institution-based view complement and differ from the industry-based and resource-based views? Why has the institution-based view become a third leg in the strategy tripod?
3. Your CPA firm is organizing a one-day-long CSR activity using company time, such as cleaning up a dirty road or picking up trash on the beach. A colleague tells you: “This is so stupid. I already have so much unfinished work. Now to take a whole day away from work? Come on! I don’t mind CSR. If the company is serious about CSR, why don’t they donate one day of my earnings, which I am sure will be more than the value I can generate by cleaning up the road or picking up trash? With that money, they can just hire someone to do a better job than I would.” What are you going to say to her? (Your colleague makes $146,000 a year or $400 per day.) 
4. As a CEO, you feel the price war in your industry is killing profits for all firms. However, you have been warned by corporate lawyers not to openly discuss pricing with rivals, whom you know personally (you went to school with them). How would you signal your intentions?
5. Some argue that engaging in a “learning race” is unethical. Others believe that a “learning race” is part and parcel of alliance relationships, especially those with competitors. What do you think?
6. Assume you work for a New Zealand company exporting a container of kiwis to Haiti. The customs official informs you that there is a delay in clearing your container through customs and it may last a month. However, if you are willing to pay an “expediting fee” of US$200, he will try to make it happen in one week. What would you do?
7. You are 30 years old and obtained your MBA from a top business school two years ago. You are being promoted to be CEO of a multibillion-dollar firm that is publicly listed in your country. There is loud minority shareholder resistance to your appointment because you are too young. Too bad—your father and your family are the controlling shareholders and you get the job. What are you going to say at your first press conference as CEO, knowing that there will be some tough questions from reporters?
8. A skeptical classmate says: “Global strategy is relevant for top executives such as CEOs in large companies. I am just a lowly student who will struggle to gain an entry-level job, probably in a small company. Why should I care about it?” How do you convince her that she should care about global strategy?
9. Critics argue that MNEs, through FDI, both exploit the poor in poor countries and take jobs away from rich countries. If you were the CEO of an MNE from a developed economy or from an emerging economy, how would you defend your firm’s FDI?
10. As a Chinese MNE executive working in the United States or an American MNE executive working in China in 2020, you feel that the host-country government officials and media have become noticeably more hostile than five years ago when you first arrived. How does this affect your daily interactions with host-country colleagues, suppliers, and customers? What are your recommendations to corporate headquarters regarding the future of the firm’s operations in the host country for the next five years?
11. Pick any recent announcement of the formation of an international alliance. Predict its likely success or failure.
12. From institution-based and resource-based views, identify the liability of foreigners confronting MNEs from emerging economies interested in expanding overseas. How can such firms overcome them?
13. Some argue that globalization has gone too far. Others argue that globalization, despite its imperfections, makes the world better. What are the ethical dilemmas in each position? What do you think?
14. Why is entrepreneurship most often associated with SMEs, as opposed to larger firms?
15. As a CEO, you are concerned that your firm and the industry in your country are being devastated by foreign imports. Trade lawyers suggest that you file an antidumping case against leading foreign rivals and assure you a win. Would you file an antidumping case or not? Why?

Q16: As a CEO leading an acquisition of a famous foreign firm, you are interviewed by a reporter from the host country. The reporter asks: “A lot of people in our country are mad about this foreign takeover of our iconic company. How would you alleviate their concerns?”

Q17: As a manager, is it ethical to threaten your suppliers? Your buyers?

Q18. Find one example of institutional transitions from developed economies and one example from emerging economies. What are their similarities and differences?

Q19: Pick any pair of rivals in the same industry (such as Boeing and Airbus, Apple and Samsung, Toyota and Volkswagen) and explain why one outperforms another.

Q20: As part of a feint attack, your firm (firm A) announces that in the next year, it intends to enter country X where the competitor (firm B) is very strong. Your firm’s real intention is to march into country Y where B is very weak. There is actually no plan to enter X. However, in the process of intentionally trying to “fool” B, customers, suppliers, investors, and the media are also being inadvertently misled. What are the ethical dilemmas here? Do the pros of this action outweigh its cons?

Q21: Your former high school buddy invites you to join a start-up that specializes in making counterfeit products. She offers you the job of CEO and 10% of the equity of the firm. The chances of getting caught are slim. You are currently unemployed. How would you respond to her proposition?

Q22: Pick an industry in which firms from your country are internationally active. What are the top five most favorite foreign markets for firms in this industry? Why?

Q23: By definition, entering foreign markets means not investing in a firm’s home country. What are the ethical dilemmas here? What are your recommendations as (1) MNE executives, (2) labor union leaders of your domestic (home country) labor forces, (3) host country officials, and (4) home country officials?

Q24: Since managers read information posted on competitors’ websites, is it ethical to provide false information on resources and capabilities on corporate websites? Do the benefits outweigh the costs?

Q25: Ethical dilemmas associated with offshoring are plenty. Pick one of these dilemmas and make a case to either defend your firm’s offshoring activities or argue against such activities (assuming you are employed at a firm headquartered in a developed economy).