Learning Outcomes:

Identify and evaluate the significant trade agreements affecting global commerce                                                                                                       (Lo: 1.1)

Analyze the effects of culture, politics and economic systems in the context of international business                                                                           (Lo: 2.1)

Identify the major components of international business management (Lo: 2.4)

Critical Thinking

Please read Case 4: “The Swatch Group and Cultural Uniqueness” available in your e-book (International business: Competing in the global marketplace (13th ed.), at page no.630, and answer the following questions:

• Assignment Question(s):

1- With the Hayek family controlling nearly 40 percent of The Swatch Group, how do you think the family’s influence impacts the corporate culture in the company? What about the company’s international culture being impacted by the Hayek family? Explain.                                                                                        

2- Many of the Swatch brands have become cultural icons among a strong core following of customers in the global marketplace. Some even talk about the “Swatch Revolution” that began when Nicolas Hayek founded the company. Why do you think Swatch has such a strong cultural following? Give logic in support of your answer.                                                                                               

• 3- As mentioned, Swatch wants you to create your own unique way of accessorizing through its Swatch watch. Is a watch a way to show who a person is culturally? Does a watch get embedded into a person’s culture? Can a watch create a cultural image? Discuss.