4A. The Global Economy in Your Own Backyard
Team up with two or three other people and have a five-minute brainstorming session to come up with as many answers to the following question as possible.

Question: What evidence of the global economy is there in your city, region, or state? Hint: Think of foreign-made products sold in local stores, foreign-owned companies, and local companies that export goods or services.

For further information about the interactive annotations in this chapter, visit our Web site /business/kreitner/management/9e/students/annotations.

Author Notes 4-A: The Global Economy in Your Own Backyard Chances are, you will be able to find evidence of the global economy without even leaving your home. Check your kitchen for pasta from Italy or your entertainment center for Korean or Japanese electronics, and, although they may not be labeled, many of your clothes were probably manufactured abroad. One area that is particularly interesting is the differences in regions of the country when it comes to foreign cars. In the Midwest, where so much of the economy is auto-industry-based, there are far fewer foreign cars than in the West, where people feel more connected to the Pacific Rim. There are actually signs in some parking lots in Michigan making it clear that foreign-brand cars are not welcome there.

4B. Back to the Opening Case
After reading this case, the material in this chapter, and the travel tips in the Skills & Tools feature at the end of the chapter, are you more or less motivated to seek a foreign assignment someday? Explain.

Author Notes 4-B: Back to the Opening Case This is very much a matter of personal preference. As someone who likes having a "comfortable" life, there is no denying that this would be compromised with a move to a foreign country. Reading about the challenges of an expatriate life in this chapter makes me aware of my limitations. On the other hand, there is a mind-widening aspect to being in a foreign country that nothing else can match. On balance--I'd go. How about you?

4C. A Corporate United Nations?
USA Today identified CEOs of U.S. companies who were born in nearly 100 countries, from Bulgaria to Colombia to Tunisia to Vietnam. At least 14 of the Fortune 500 CEOs are foreign-born.

Del Jones, "Foreign-Born CEOs Cite U.S. Merit-Based System," USA Today (October 2, 2001): 2B.

Question: Will this trend likely make American companies more ethnocentric or geocentric? Explain.

Author Notes 4-C: A Corporate United Nations? One would hope that this would make American companies more geocentric. As a matter of fact, the presence of these foreign-born CEOs indicates that these companies have already moved in that direction.

4D. Is It Futile to Ask People in the U.S. to "Buy American"?
[Japan's] Toyota has 28,000 U.S. employees and 1,400 dealers. About 65% of the vehicles it sells in the USA are built at its plants in Indiana, Kentucky, California and Ontario, Canada. [A Toyota executive] ... says that by the time the 2002 redesigned Camry reaches the end of its cycle in three or four years, it will have 100% North American-made parts.

David Kiley, " 'Buying American' Takes Some American Know-How," USA Today (October 3, 2001): 6D.

Question: Is it a good idea to try to buy goods made in your own country? Why?

Author Notes 4-D: Is It Futile to Ask People in the United States to "Buy American"? What's interesting about this shift is that at the same time, more and more so-called American-made cars are actually just being assembled in the United States, with many components constructed in Mexico, South America, or elsewhere. I think it's a good idea to buy the best goods available at the best price. It's easy to lose sight of the basics in all the domestic/international confusion, but if you believe in the American classic economic concept of a free market, then whenever you buy the best option, whether it's from the United States or anywhere else in the world, then you truly are "buying American."

4E. Big Wide World? What World?
More than 75% of the [U.S.] public supports requiring students to take courses addressing global issues. But college coursework of that nature is, at best, uneven. One study indicates that less than 7% of college students meet even basic standards of global preparedness.

Mary Beth Marklein, "Colleges Lose Their Foreign Accent," USA Today (November 13, 2000): 7D.

Questions: How do you rate your own awareness of global issues and preparedness to work in the global economy? How world-wise is your college coursework?

Author Notes 4-E: Big Wide World? What World? Can you speak a foreign language? Fluently? How about geography--can you identify the countries in South America on an unmarked map of the continent? What is the appropriate way to give or receive a gift in Japan? What is the easiest way to get the best exchange rate available in any foreign country? Have you ever traveled abroad? Spent time in the home of a foreign family? Communicated with someone who doesn't speak much if any English? Better get ready--the global economy is here. (Answers: Give or receive a gift in Japan with both hands. To get the best exchange rate in any foreign country, use your credit/debit card in an ATM machine.)

4F. Foreign Language Skills
Fact: Senior executives in the Netherlands speak an average of 3.9 languages. Their counterparts in both the United Kingdom and the United States speak an average of 1.5 languages.

Learning a foreign language is easier for some than for others. International business experts say it is worth the time and effort in order to

• Enhance the traveler's sense of mastery, self-confidence, and safety.
  
  
• Show respect for foreign business hosts or guests.
  
  
• Help build rapport and trust with foreign hosts or guests.
  
  
• Improve the odds of a successful foreign business venture.
  
  
• Build a base of confidence for learning other languages.
  
  
• Promote a deeper understanding of other cultures.
  
  
• Help travelers obtain the best possible medical care during emergencies.
  
  
• Minimize culture shock and the frustrations of being an outsider.
  
  

Data from "Bilingual Business," USA Today (April 11, 2000): 1B; adapted from Gary P. Ferraro, "The Need for Linguistic Proficiency in Global Business," Business Horizons, 39 (May-June 1996): 39-46.

Questions: Could you conduct a business meeting in one or more foreign languages? What has been your experience with trying to learn foreign languages? How strong is your desire to speak a foreign language? Which language(s)? Why? Would a strong second language help you get a better job? Explain.

Author Notes 4-F: Foreign Language Skills There are clear business advantages to knowing additional languages. Being able to do business in the language of the country you are in is a clear negotiating advantage, as well as a compliment to your hosts. For most U.S. students, however, experience with another language has been limited to a couple of years of high school French or Spanish. In many parts of the world, the U.S. pattern of speaking only English is seen as very ethnocentric. In many industrialized countries, a second language is assumed, and many people know three or more languages fairly fluently. In Japan, children start English classes in public schools at the age of twelve, and most Japanese have at least a basic knowledge of English. Also, many Japanese businessmen hire young Americans to teach them common phrases and idioms, as well as business terminology.

4G. Ouch, That Hurts!
Old Japanese saying: "The nail that sticks out is hammered down."

As quoted in Julie Schmit, "Japan Undergoes E-Makeover," USA Today (April 19, 2000): 2B.

Questions: What implications does this have for would-be entrepreneurs in Japan? Does the "nail" ever get hammered down in the United States (or another country of your choice)? Explain.

Author Notes 4-G: Ouch, That Hurts! There is an inherent conceit in many entrepreneurs, that sense of "I can do it better," or "If s/he can do it, I certainly can." This confidence is useful when selling your idea to potential financial backers or generating those first sales, and almost required during those first months when you wake up at three in the morning and wonder whatever made you give up that steady paycheck. In the United States, that conceit is almost a requirement to get ahead. However, in a country such as Japan, it might actually get in the way. Perhaps you would be more successful showing how your company's product can contribute to the community than demonstrating that you are better than some well-established firm. A certain amount of humility might play better in that culture when you make a decision to step out on your own.

4H. Looking for the Right Stuff
According to Robert Rosen, author and international management consultant, today's global businesses need leaders who:

• See the world's challenges and opportunities.
  
  
• Think with an international mindset.
  
  
• Act with fresh, global-centric leadership behaviors.
  
  
• Mobilize a world-class team and company.
  
  

Ruth E. Thaler-Carter, "Whither Global Leaders?" HR Magazine, 45 (May 2000): 84.

Questions: How do you measure up to this profile? Can you identify people you know personally who fit these requirements? Describe these people and assess their effectiveness.

Author Notes 4-H: Looking for the Right Stuff Are there many students from other countries in your classes? If so, have any of your professors capitalized on their divergent backgrounds by drawing them into discussions on international issues? If you've been on a team with an international student, have you taken advantage of the situation to learn more about that person's country or culture? If not, why not? If you're not thinking internationally now, will you be any different in the workplace? Are there people you know whose parties almost always have a mix of international people attending? Do they discuss international issues, listen to the BBC news on NPR, read magazines that are published in other countries? Is their passport up-to-date? Is yours? Expanding your perspective is the first big step in becoming one of those global business leaders Robert Rosen is talking about. Do something international today, even if it's just eating at an ethnic restaurant.

4I. Parlez vous Microsoft Excel?
Fact: Mandarin Chinese is the world's most common language, spoken by 885 million people. Spanish is next with 332 million speakers, followed by English (322 million), Bengali (189 million), Hindi (182 million), Portuguese and Russian (170 million each), and Japanese (125 million).

Opinion: "Odds are more business-oriented Asians speak fluent Microsoft Excel than speak fluent English. Which fluency better helps their business?"

Data from Julie Schmit, "Rough Translation: 'No English, No Job'--A Reality Many of Asia's Workers Face," USA Today (July 21, 2000): 1B; and Michael Schrage, "Beyond Babel: Why the Babble Below Will Matter Less," Fortune (March 19, 2001): 214.

Question: In today's high-tech world, with common software and promises of instant electronic translations, is learning a foreign language any less important than before? Explain.

Author Notes 4-I: Parlez Vous Microsoft Excel? Sometime, take a look at an English/foreign language dictionary, and explore the translations. Or watch a movie and compare the length of the subtitles to the amount of conversation. Translations are often fairly good at transferring the basic meaning of a word or phrase, but pretty weak at conveying the often-subtle nuances of language that can give you the advantage in a business situation. In high-context Japan, many executives hire young Americans to help them learn the subtleties of the English language. They realize that really knowing American English can make a big difference in the success of an interaction with U.S. businesspeople. While today's technical communications will probably reduce the need for knowing foreign languages for everyday interactions, there's more to language than a computer can tell you. It's up to you to decide if you're willing to miss out.

4J. Back to the Opening Case
Is Yum! Brands a global company or a transnational company? Explain.

Author Notes 4-J: Back to the Opening Case Although YUM! is U.S.-based, and is therefore a global company, some of their strategic choices, such as changing the menu to meet regional tastes and having locally owned franchises, demonstrates that they are moving in the transnational direction.