The Free Market/Economic Crisis

Topic: The Free Market/ Economic Crisis
1) Are bailouts for large scale credit institutions antithetical to the “free market”?
2) Should consumers get credit write offs?
3) Do large scale bailouts redistribute wealth from the poor and middle class to the upper class?
4)Should there be restrictions on the income of CEO’s whose corporations fail.

Paper instructions:
WRITTEN RESPONSE #4 MGNT 4670: Strategy in International Business/Entry Modes
Instructions: Refer to the key concepts covered in Chapter 13 and Chapter 15 of the text and the power points about the challenges and opportunities of the International Business. Utilize this information to answer the questions 1-2 indicated below. Read the Part 5 Case: “Diebold” on pages 519-520 of the textbook (9th edition) and answer question 3. For Question 4, conduct research on the Internet and follow the instructions provided. Your answers must be typed, double-spaced, size 12 font, preferably in question-answer format with complete answers and approximately 3-4 pages in length. .
Due Date: Hard copy to be handed in no later than Monday, November 25, 2013.
1) What are the two types of pressures that firms competing in the global marketplace typically face? Under what types of conditions do these pressures arise? (1 point)

2) What are the four main strategies firms may follow to face these pressures? Describe the basic approach of each of these strategies, specifically in terms of its response to the two basic pressures. (2 points)

3) Read the Case on “Diebold” and answer the following questions, using facts from the cases to support your answer and considering the four main strategies you identified in question 2 (5 points):
Prior to 1997, Diebold manufactured its AATM machines in the United States and sold them internationally via distribution agreements, first with Philips NV and then with IBM. Why do you think Diebold chose this mode of expanding internationally? Which of the four strategies did Diebold pursue in this beginning phase? What were the advantages and disadvantages of this arrangement?

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What prompted Diebold to change its international expansion strategy in 1997 and start setting up wholly owned subsidiaries in most markets? Why do you think the company chose acquisition as an entry mode?
Diebold entered China via a joint venture, as opposed to a wholly owned subsidiary. Why do you think it chose joint venture as an entry mode?
Describe the types of pressures for local responsiveness which Diebold encountered in expanding international. How did these pressures influence Diebold’s decisions about their international strategy?
Based on the changes Diebold had to make as it expanded internationally, is Diebold pursuing a localization strategy or a global standardization strategy?

4) Visit HYPERLINK “http://www.mcdonald’s.com” www.mcdonald’s.com and look at the left side of the home page; click on Mwebsites and open it up and click on international websites. You will see a list of regions you can select as shown below.

Select three of the five regions and take a look at the website for one country from each of these three areas. (in other words, select a total of three (3) countries, each one from a different region). You may not be able to understand the language, but
there are many differences that you will find if you surf around this websites.
Study the websites you have looked at and write a short essay (minimum two paragraphs) about some of the changes that McDonald’s has made in response to pressures for localization. These changes would include offering different menu choices, different services, emphasizing certain aspects of the McDonald’s brand, communicating in a different manner on the website (e.g. more pictures, less graphics, etc.), etc. Keep in mind that McDonald’s makes adjustments in its international markets beyond menu adaptations, such as offering delivery service and wedding service in selected international markets. (2 points)