How does the Internet affect international business activity and the globalization of the world economy?

Review questions

1. How have changes in technology contributed to the globalization of markets and production? Would the globalization of production and markets have been possible without these technological changes?

2. How does the Internet affect international business activity and the globalization of the world economy?

3. Discuss why the culture of a country might influence the costs of doing business in that country. Illustrate your answer with country and company examples.

4. Can a company be good at corporate social responsibility but not be sustainability-oriented? Is it possible to focus on sustainability but not corporate social responsibility? Based on reading the Focus on Managerial Implications section, discuss how much CSR and sustainability are related and how much the concepts differ from each other.

5. A manager from a developing country is overseeing a multinational’s operations in a country where drug trafficking and lawlessness are rife. One day, a representative of a local “big man” approaches the manager and asks for a “donation” to help the big man provide housing for the poor. The representative tells the manager that in return for the donation, the big man will make sure that the manager has a productive stay in his country. No threats are made, but the manager is well aware that the big man heads a criminal organization that is engaged in drug trafficking. He also knows that the big man does indeed help the poor in the rundown neighborhood of the city where he was born. What should the manager do?