I. Short essays answers:
1- there are three primary approaches when hiring staff for positions in a foreign country: geographic, polycentric, and ethnocentric. Explain each approach. Assume you a young French person and work for Carrefour( a large French retail and grocery company: they compete worldwide against Walmart). Carrefour has promoted you and transferred you to become the General Manager of a newly built retail store in Bangalore, work in the Bangalore store and hold a spectacular grand opening within the next 3 months. Discuss the staffing approach you would follow to hire your local management team and store workers. Explain why your approach will be the most successful one in this situation.
2- Explain the concept “Liability of foreignness”. Chipotle Mexican Grill restaurant have been very successful in the U.S. However, the have encountered many challenges as they expanded overseas. Specifically, they have been struggling to success in London, England. Why do you think Chipotle is having difficulties in England? In general (not specifically related to Chipotle) discuss 2 “liability of Foreignness” advantages and 2 disadvantages a company faces when operation in a foreign country.
3- You are the CEO of Dell Computer (a large U.S. personal computer) and are planning to open a new factory in Colombia. You have several options of how to enter this new foreign market. List and explain 2 potential equity modes of market entry. Discuss 1 advantage and 1 disadvantage of each mode of market entry.
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