College of Administrative and Financial Sciences
Deadline: 06/03/2021 @ 23:59
Course Name: Intro to International
Course Code: MGT-321
StudentÃ¢â‚¬â„¢s ID Number:
Academic Year: 1441/1442 H
For InstructorÃ¢â‚¬â„¢s Use only
StudentsÃ¢â‚¬â„¢ Grade: Marks Obtained/Out of
Level of Marks: High/Middle/Low
Instructions Ã¢â‚¬â€œ PLEASE READ THEM CAREFULLY
Ã¢â‚¬Â¢ The Assignment must be submitted on Blackboard (WORD format only) via allocated
Ã¢â‚¬Â¢ Assignments submitted through email will not be accepted.
Ã¢â‚¬Â¢ Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover page.
Ã¢â‚¬Â¢ Students must mention question number clearly in their answer.
Ã¢â‚¬Â¢ Late submission will NOT be accepted.
Ã¢â‚¬Â¢ Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
Ã¢â‚¬Â¢ All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
Ã¢â‚¬Â¢ Submissions without this cover page will NOT be accepted.
All students are encouraged to use their own word.
Assignment -1 should be submitted on or before the end of Week-07 in Black Board only.
Ã¢â‚¬Â¢ Citing of references is also necessary.
Explain the forces driving and evaluate the impact of globalization (Lo 1.3)
Discuss the reasons for and methods of governmentsÃ¢â‚¬â„¢ intervention in trade (Lo 1.7)
Identify the major components of international business management (Lo 1.2)
Please read Case 5: Ã¢â‚¬Å“Lead in Toys and Drinking WaterÃ¢â‚¬Â available in your e-book (page no.615), and
answer the following questions:
1. Should there be a global standard for toy manufacturing? What are some of the benefits
and what are some of the drawbacks of a potential global quality and manufacturing
minimum words: 150 words)
2. With some 80 percent of the toys sold in the United States being manufactured in China,
should the United States place greater emphasis on its toy-trading relationship with China?
Could the United States control ChinaÃ¢â‚¬â„¢s manufacturing more than it does today? How?
(marks: 2, word limit: minimum 200)
3. The Flint, Michigan, water crisis highlighted a major issue in the United States regarding
old lead-based pipes used to transport water to the community. This came to light in Flint
due to the failure of applying corrosion inhibitors to the water when the city leadership
decided to switch water sources. What global fail-safe mechanisms should be enforced on
water consumption, and other consumable products, to safeguard from potential lead
(mark: 1, word limit: minimum 150 words)
aÃ‚Â lbeit not at the historic levels seen between 2000 and
2010, when it grew about 10.4 percent annually. The
growth in the 2020s is expected to be about 5.5 percent
per year (until 2030), which is still far above the expected
growth for the United States (2.8 percent annually), Japan
(1.2 percent annually), and Germany (1.7 percent annually). And the key is that consumption will now be the
driving force behind the growth in China instead of foreign investment. The consumption forecast opens up opportunities for foreign companies to engage with Chinese
consumers who are expected to have more purchasing
power and discretionary spending.
But culturally translating market success from one country or even a large number of countries to the Chinese marketplace is not necessarily as straightforward as it may
seem. Often, a combination of naivetÃƒÂ©, arrogance, and cultural misunderstanding have led many well-known companies to fail in China. Lack of an understanding of issues
such as local demands, buying habits, consumption values,
and Chinese customersÃ¢â‚¬â„¢ personal beliefs led to struggles for
companies that had been very successful elsewhere in the
world. And as global as China is becoming, cultural differences still get magnified in the Chinese marketplace. LetÃ¢â‚¬â„¢s
take a look at Best Buy and eBay as two examples.
Best Buy, the mega-store mainly focused on consumer
electronics, was founded in 1966 as an audio specialty store.
Best Buy entered China in 2006 by acquiring a majority interest in ChinaÃ¢â‚¬â„¢s fourth-largest appliance retailer, Jiangsu
Five Star Appliance, for $180 million. But culture shock hit
Best Buy, best described by Shaun Rein, the founder of
China Market Research Group. First, the Chinese will not
pay for Best BuyÃ¢â‚¬â„¢s overly expensive products unless they are
a brand like Apple. Second, there is too much piracy in the
Chinese market, and this reduces demand for electronics
products at competitive market prices. Third, like many
Ã‚ÂEuropeans, the Chinese do not want to shop at huge megastores. So, these three seemingly easy-to-understand cultural
issues created difficulties for Best Buy.
eBay, the popular e-business site focused on consumer-toconsumer purchases, was founded in 1995. The company
was one of the true success stories that lived through the
dot-com bubble in the 1990s. It is now a multibillion-dollar
business with operations in more than 30 countries. But
ChinaÃ¢â‚¬â„¢s unique culture created problems for eBay. Contrary
to the widespread cultural issues that faced Best Buy, one
company in particular (Alibaba) and one feature more
sÃ‚Â pecifically (built-in instant messaging) shaped a lot of the
problems that eBay ran into in China. Some 200 million
shoppers are using AlibabaÃ¢â‚¬â„¢s Tmall and Taobao platforms
to buy products, and the company accounts for almost
80 percent of online transaction value in China.
Uniquely, TaobaoÃ¢â‚¬â„¢s built-in instant messaging system
has been cited as a main reason for its edge over eBay in
China. Basically, customers wanted to be able to identify
a sellerÃ¢â‚¬â„¢s online status and communicate with them directly and easilyÃ¢â‚¬â€a function not seamlessly incorporated
into eBayÃ¢â‚¬â„¢s China system. Clearly, built-in instant text
messaging is a solvable obstacle in doing business in
China. It sounds easy now that we know about it, but it
may not always be the case when we take into account all
the little things that are important in a market. How can
a foreign company entering China ensure that it tackles
the most important Ã¢â‚¬Å“littleÃ¢â‚¬Â things that end up being huge
barriers to success?
Frank Lavin, Ã¢â‚¬Å“China Marketing: Five Keys for a Crowded Market,Ã¢â‚¬Â Forbes, March 25, 2017. B. Carlson, Ã¢â‚¬Å“Why Big American
Businesses Fail in China,Ã¢â‚¬Â GlobalPost, September 22, 2013;
Y. Atsmon, M Magni, L. Li, and W. Liao, Ã¢â‚¬Å“Meet the 2020
Chinese Consumer,Ã¢â‚¬Â McKinsey Consumer & Shopper Ã‚ÂInsights,
March 2012; Ã¢â‚¬Å“Exports to China by State 2000Ã¢â‚¬â€œ2011,Ã¢â‚¬Â The
USÃ¢â‚¬â€œChina Business Council, 2012; A. Groth, Ã¢â‚¬Å“Best BuyÃ¢â‚¬â„¢s
Overseas Strategy Is Failing in Europe and China,Ã¢â‚¬Â Business
Insider, November 4, 2011.
Case Discussion Questions
Will China maintain its strong economic growth in
the years to come? Some suggest it will until 2050.
What do you think?
2. If China will go from 17 million to 200 million
middle- and upper-income people by the early 2020s,
would the scenario presented by Best Buy not be
Ã‚Âapplicable anymore? Would newly rich Chinese
Ã‚Âcustomers engage in this purchasing in the 2020s?
3. With AlibabaÃ¢â‚¬â„¢s ownership of the very popular Tmall
and Taobao online shopping systems (similar to
eBay and Amazon) and its spread across the world,
will a Western-based online shopping culture
Ã‚Âultimately infiltrate China?
Lead in Toys and Drinking Water
Toys for children are made in numerous countries and
then exported to buyers throughout the world. In some
countries, such as the United States, certain protection
exists to make sure that toys are safe for children. The
U.S. Consumer Product Safety Commission (CPSC) reg-
ularly issues recalls of toys that have the potential to expose children to danger such as lead or other heavy
metals. Lead may be found in the paint and in the plastic
used to make the toys. If ingested (e.g., children chewing
on toys), lead is poisonous and can damage the nervous
system and cause brain disorders. Lead is also a neurotoxin that can accumulate in both soft tissue and bones in
For these reasons, lead was banned in house paint, on
toys marketed to children, and in dishes or cookware in
the United States in 1978. In addition, in an agreement
between ChinaÃ¢â‚¬â„¢s General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and
CPSC, the Chinese agreed to take action to eliminate the
use of lead paint for Chinese-manufactured toys that are
exported to the United States. With ChinaÃ¢â‚¬â„¢s prominence
as a toy manufacturing country, this agreement was a step
toward making safe products for children.
Still, lead continues to be a hazard in a quarter of all
U.S. homes with children under age 6. A wide range of
toys and childrenÃ¢â‚¬â„¢s products, including many marketleading and reputable brands, often contain either lead
or other heavy metals (e.g., arsenic, cadmium, mercury,
antimony, or chromium). Estimates exist that suggest
that one-third of Chinese toys still contain heavy metals.
These estimates are supported by researchers from
Greenpeace and IPEN, who conducted a study by using
500 toys and childrenÃ¢â‚¬â„¢s products they bought in five
Chinese cities. They tested the products with handheld
X-ray scanners and found that 163 of the toys were
tainted with heavy metals above the norm (32.6 percent). Ã¢â‚¬Å“These contaminated toys not only poison children when chewed or touched, but can enter the body
through the air they breathe,Ã¢â‚¬Â said Ada Kong Cheuk-san
at Greenpeace. This testing result is a major problem
given that China manufactures 80 percent of the toys
sold in the United States.
While lead in the paint on toys has not been eliminated, the focus on cleaning up lead in the paint has
been given front-page coverage in the news for the last
decade. Lead in toys is certainly not gone, but at least
more and more people are paying attention. Several
Ã‚ÂorganizationsÃ¢â‚¬â€both governmental and privateÃ¢â‚¬â€are examining lead-based paint in toys on a continual basis. For
example, The New York Times and Consumer Reports recently found that dangerous products for children are
still widely available. The Ecology Center, which is
headquartered in Ann Arbor, Michigan, has created a
website called HealthyStuff.org that contains a database
of toys and other products that have been tested for dangerous chemicals.
While lead in paint seems to be in focus, the use of
lead in plastics has not been banned! Lead is used to
soften the plastic and make it more flexible to allow it
to go back to its original shape after children play with
the toys. Plus, lead may also be used in plastic toys to
stabilize molecules from heat. Unfortunately, when the
plastic is exposed to sunlight, air, and detergents, for
example, the chemical bond between the lead and plastics breaks down and forms dust that can enter the
Ã‚Â uman body. Ã‚ÂAnother unfortunate part about lead is
that it is invisible to the naked eye and has no detectable smell. This means that children may be exposed to
lead from toys (and other consumer products) through
normal playing activity (e.g., hand-to-mouth activity).
As everyone with children knows, children often put
toys, fingers, and other objects in their mouth, exposing
themselves to lead paint or dust.
The Flint, Michigan, water crisis that spanned 2014
to 2017 is one significant news story that highlighted
the unfortunate part about lead being invisible and with
no detectable smell. The Flint water crisis started in
April 2014 when Flint city management changed its water source from the treated Detroit Water and Sewerage
Department water (which is sourced from Lake Huron
and the Detroit River) to the Flint River. A critical
Ã‚Âmistake in making this switch of water source was that
Flint officials failed to apply corrosion inhibitors to the
water. The result was that upward of 12,000 children
were exposed to drinking water with high levels of lead.
Contaminated drinking waterÃ¢â‚¬â€with lead or other contaminantsÃ¢â‚¬â€is a problem that affects some 1.8 billion
people in the world according to the World Health
Children are also more vulnerable to lead than
adults; there is no safe level of lead for children. The
worldwide toy industry has published a voluntary standard of 90 ppm (parts per million) for lead in toys,
which, of course, is greater than a ban on lead in paint
used for toys and in the materials used to make the toys
(such as plastics). But since 2007, the world has at least
seen stricter standardsÃ¢â‚¬â€either voluntary or regulated
standardsÃ¢â‚¬â€that make it safer for children to play with
newly purchased toys. The CPSC in the United States,
the European Union, and ChinaÃ¢â‚¬â„¢s AQSIQ are actively
monitoring and enforcing stricter standards. But, according to Scott Wolfson of the CPSC, many toy manufacturers have been violating safety regulations for
almost 30 years. So, are toys safer now and are they really safe to play with throughout the world? What do we
do with the old toys, old water pipes, and untested
Liam Stack, Ã¢â‚¬Å“Lead Levels in Flint Water Drop, but Residents
Still CanÃ¢â‚¬â„¢t Drink It,Ã¢â‚¬Â The New York Times, January 24, 2017;
Andy Robertson, Ã¢â‚¬Å“Toy Fair Trends Reveal Movies, Collectibles
and Tech Drive $26 Billion Toy Industry,Ã¢â‚¬Â Forbes, February 28,
2017; M. Moore, Ã¢â‚¬Å“One-Third of Chinese Toys Contain Heavy
Metals,Ã¢â‚¬Â The Telegraph, December 8, 2011; P. Kavilanz, Ã¢â‚¬Å“China
to Eliminate Lead Paint in Toy Exports,Ã¢â‚¬Â CNN Money, September 11, 2007; U.S. Centers for Disease Control and Prevention,
www.cdc.gov/nceh/lead/tips/toys.htm, accessed March 8, 2014;
Ã¢â‚¬Å“U.S. Prosecutes Importers of Toys Containing Lead, Phthalates,Ã¢â‚¬Â
AmeriScan, February 26, 2014.
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