Scenario 3: Your German Soccer Boots Your father rarely throws anything away, and while cleaning out the attic a few years ago, he came across a pair of vintage Adidas soccer boots made in 1955. Realizing that they’d be extremely valuable to collectors in Adidas’s Chapter 3 Business in a Global Environment 3.7 Cases and Problems 170
home country of Germany, he hoped to sell them for US $5,000 and, to account for the exchange rate at the time, planned to price them at $7,200 in euros. Somehow, he never got around to selling the boots and has asked if you could sell them for him on eBay. If he still wants to end up with US $5,000, what price in euros will you now have to set? Would an American company that exports goods to the European Union view the current rate more favorably or less favorably than it did back in 2007? CAREER OPPORTUNITIES (AACSB) Broadening Your Business Horizons At some point in your life, you’ll probably meet and work with people from various countries and cultures. Participating in a college study-abroad program can help you prepare to work in the global business environment, and now is as good a time as any to start exploring this option. Here’s one way to go about it: • Select a study-abroad program that interests you. To do this, you need to decide what country you want to study in and your academic field of interest. Unless you speak the language of your preferred country, you should pick a program offered in English. ◦ If your school offers study-abroad programs, choose one that has been approved by your institution. ◦ If your school doesn’t offer study-abroad programs, locate one through a Web search. • Describe the program, the school that’s offering it, and the country to which it will take you. • Indicate why you’ve selected this particular program, and explain how it will help you prepare for your future business career. Chapter 3 Business in a Global Environment 3.7 Cases and Problems 171
ETHICS ANGLE (AACSB) The Right, Wrong, and Wisdom of Dumping and Subsidizing When companies sell exported goods below the price they’d charge in their home markets (and often below the cost of producing the goods), they’re engaging in dumping . When governments guarantee farmers certain prices for crops regardless of market prices, the beneficiaries are being subsidized . What do you think about these practices? Is dumping an unfair business practice? Why, or why not? Does subsidizing farmers make economic sense for the United States? What are the effects of farm subsidies on the world economy? Are the ethical issues raised by the two practices comparable? Why, or why not? Chapter 3 Business in a Global Environment 3.7 Cases and Problems 172
TEAM-BUILDING SKILLS (AACSB) Three Little Words: The China Price According to business journalists Pete Engardio and Dexter Roberts, the scariest three words that a U.S. manufacturer can hear these days are the China price . To understand why, go to the Business Week Web site ( ) and read its article “The China Price,” which discusses the benefits and costs of China’s business expansion for U.S. companies, workers, and consumers.
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