FINAL ASSESSMENT Student Number: (enter on the line below) Student Name: (enter on the line below) HI5013 MANAGING ACROSS BORDERS final assessmeNt Trimester 1, 2022 Assessment Weight: 50 total marks...

FINAL ASSESSMENT

Student Number: (enter on the line below)
Student Name: (enter on the line below)

HI5013
MANAGING ACROSS BORDERS
final assessmeNt
Trimester 1, 2022
Assessment Weight:     50 total marks
Instructions:
· All questions must be answered by using the answer boxes provided in this paper.
· Completed answers must be submitted to Blackboard by the published due date and time.
Please ensure you follow the submission instructions at the end of this paper.
Purpose:
This assessment consists of six (6) questions and is designed to assess your level of knowledge of the key topics covered in this unit.
            
        
HI5013 Final Assessment T1 2022
    
Question 1    (11 Marks)

American companies form the majority of MNCs (multi-national corporations). On the other hand, many people believe that Americans are poorly equipped to assist an organisation to enter into a non-American culture.
i) Explain the characteristics of the American culture that would prohibit understanding and empathetic behavior towards another culture. (5 Marks)
ANSWER i): ** Answer box will enlarge as you type
Companies and people are always giving importance to the concept of culture. While analysing the case of American companies we can understand that they are not good in dealing with the people from other culture (Banks 2022). One of the major characteristics of American culture is that they believe in equal opportunity and they did not give importance to environment. Lack of cultural awareness is another issue and they create different problems in the organization (Patino et al 2022). Lack of cultural awareness prohibit understanding and empathetic behavior towards another culture. American also give more importance to financial aspects and they are not ready consider the human needs
ii) Explain the Uppsala model and how it assists organisations to expand globally. (6 Marks)
ANSWER ii):
The Uppsala model is one of the most well-known models of how corporations begin the process of internationalization. It has a sequential method, which means that the company internationalizes gradually. The approach presupposes a lack of foreign market expertise, which is averse to internationalization. As a result, it advises that a business first establish itself in its native market, and then gradually develop its commitment and resources in the target nation, proceeding to the next step after a sufficient awareness and knowledge of the foreign market circumstances has been attained (Sun et al 2022). The company IKEA used the model for managing the international operations and for expanding globally in a most effective way. Uppsala model helps the organizations for understanding the changes in international market and it also helps the organizations for making changes in the international strategic plans and operations.
Question 2    (7 Marks)
Though many MNCs espouse and follow rigid codes of social responsibility in their home countries they are often not as diligent with respect to ‘host’ or overseas countries. In 1984 the Bhopal disaster in Madhya Pradesh, India killed 3,787 and impacted a further 558,125 people. The corporation in question was Union Carbide, a majority USA owned company. Indian courts convicted the Chairman and other senior executives of “…causing death by negligence”.
i) Why do you believe that Union Carbide had a less stringent policy in India with respect to negligence than they did in the USA?
ANSWER i):
US and other developed countries select developing countries for acquiring the resources and for running the business in a cost-effective way. While analysing the case of Union Carbide, the company selected India because of the following reasons;
Less cost for the land
Cheap labour
Maintenance cost is less
Lack of effective legal rules and practices
Bribing the government officials
While comparing the rules and regulations in India versus US we can understand that US follows strict policies and regulations and in India the companies have the freedom for not following the rules. In India they gained the support of political party and also gained the support of the government for running their business and they were not interested in implementing effective policies and practices for protecting the life of the people and environment. The company was failed to implement quality systems and most of the safety systems were not working (Nobile et al 2022). In US if the company is not following the rules, it will directly hinder the day-to-day activities of the organisation.
In India they can easily convince the quality inspectors and employees and they are not event considered about the life of the people.
ii) What is the way to fix this situation? Explain whether it is legislation or cultural change from MNCs that is required
ANSWER ii):
Lack of facility and poor-quality items was the major reason for the incident and Indian government and company people were not serious about issue. For fixing this situation in an effective way, the Indian government has to implement strict rules and regulations and they have to charge penalties or provide punishments to the corporations who violates the rules. The companies a government has to give importance to legislation for avoiding these kinds of incidents (Nobile et al 2022). Regularly the government has to check the quality of the equipment’s and systems available in the organization.
Legislation always helps for making changes and for following the exact rules and regulations. Cultural change does not create much difference, we have to give importance to legal rules and regulations.
Question 3    (7 marks)
Communication has undergone a revolution in the past 20 years. Today, using various technologies, executives can speak with offshore subsidiaries in host countries on a 24/7 basis. Often these executives do not have a deep cultural or social...