Which of the following is the most important constraint on the ...

[formula1]

Which of the following is the most important constraint on the explanatory power of the IO paradigm?
 
  A) Many industries are imperfectly competitive.
  B) Many companies are locally but not internationally competitive.
  C) Most customers have perfect knowledge of the products they select.
  D) Most industries have many firms that each have small market shares.

Question 2

What individual characteristics and qualifications should a company consider when choosing managerial candidates for foreign assignments? Which one do you think is most important? Why?
 
  What will be an ideal response?

[Smiles0805]

Answer to Question 1

A

Answer to Question 2

a. Technical competence: Usually indicated by past job performance, this is the biggest determinant of success in foreign assignments. At the least, an expatriate must command the functional skills to do the job and, if necessary, understand how to transfer or tailor them to foreign situations. Managers commonly have had several years' worth of work experience before a company sends them abroad. This tendency also reflects the fact that expatriate selections are usually made by line managers based on the candidate's operational track record. Moreover, many companies translate a record of outstanding technical competence into the self-confidence needed to do well abroad.
b. Adaptiveness: Although some companies rely only on technical competence to select expatriates, three types of adaptive characteristics are important for an expatriate's success when entering a new culture:
- the need for self-maintenance, such as being self-confident and able to reduce stress
- those related to the development of satisfactory relationships with host nationals, such as flexibility and tolerance
- sensitivities that help one to perceive correctly what is occurring with the host society
An expatriate who lacks these may be unable to function effectively. Unfortunately, companies cannot always assess these adaptability characteristics accurately. If the expatriate cannot adapt, he or she may leave the foreign assignment, either by choice or by company decision.
c. Leadership ability: Increasingly, companies see personal leadership as a key to an expatriate's success. Expatriates often find themselves as senior managers at foreign subsidiaries that are usually much smaller than the parent but nevertheless still require top-level leadership duties. Communication skills, motivation, self-reliance, courage, risk taking, and diplomacy become essential qualities for success. Successful expatriates often command, in descending order of importance, optimism (believes future challenges can be overcome), drive (has passion to succeed), adaptability (handles ambiguity well), foresight (imagines the future), experience (has seen and done a great deal), resilience (recovers quickly from failure), sensitivity (adjusts management style to cultural differences), and organization (plans ahead, follows through).