Giving examples to show the differences between ethnocentric and polycentric orientation

What will be an ideal response?

A manager who assumes that his or her home country is superior to the rest of the world is said to have an ethnocentric orientation. Polycentric orientation is the opposite of ethnocentric orientation, where a manager assumes that each country in which a company does business is unique. In ethnocentric orientation, foreign operations or markets are typically viewed as being secondary or subordinate to domestic ones. For example Nissan's ethnocentric orientation caused managers to believe that consumers all over the world should and would behave as do the Japanese. In Northern Japan, people would put blankets over the hoods of their cars during cold winters and managers assumed that people in the United States should be able to do the same. Citicorp's financial company executives have polycentric orientation, where the assumption was that each country is different, and there is a need for a localized or adaptation approach.

Business

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Which of the following is often reported as an extraordinary item?

a. Amortization expense. b. Impairment losses for intangible assets. c. Research and development costs. d. None of the above.

Business

Which one of the following statements is correct concerning the weighted average cost of capital (WACC)?

A) The pre-tax rate of return on the debt is the rate that is relevant to the computation of the WACC. B) When computing the WACC, the weight assigned to the preferred stock is equal to the coupon rate multiplied by the par value assigned to the preferred stock. C) A firm's WACC will decrease as their corporate tax rate decreases. D) The weight of the common stock used in the computation of the WACC is based on the number of shares outstanding multiplied by the book value per share. E) The weight of the debt can be based on the face value of the bond issue(s) outstanding multiplied by the quoted price(s) when expressed as a percentage of the face value.

Business