Page 113 - Business Principles and Management

Unit 1

The support of the entire family is often necessary for the manager to suc-
ceed in the foreign location. With more and more spouses of managers having
careers of their own, many firms are finding it difficult to persuade managers to
take long-term transfers to a foreign location. Instead, they are using frequent
short business trips, bringing in host-country managers to headquarters, and
using teleconferencing and the Internet to manage their foreign operations.

CHECKPOINT

Describe the skills international managers need
to be successful.

4.3 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Circle the best answer for each of the following questions.
1. The theory that a country should specialize in products or services
that it can provide more efficiently than can other countries is
called
a. international specialization
b. competitive advantage theory
c. comparative advantage theory
d. specialization theory
2. Which of the following is not part of the balance of payments?
a. current account
b. capital account
c. economic surplus
d. All are included as part of the balance of payments.

THINK CRITICALLY
Answer the following questions as completely as possible.
3. If a country regularly has a trade surplus, what will happen
to its international business?
4. Explain the situations under which a multinational firm
will use home-country, host-country, and third-
country nationals in its foreign operations.

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