Sample Exam 1 Essay

Submitted By Guddi2010
Words: 2690
Pages: 11

Ch. 1.
1. What is a global company?
A company that engages in global marketing conducts important business activities outside the home country market. The scope issue can be conceptualized in terms of the familiar product/market matrix of growth strategies
An industry is global to the extent, that a company’s industry position in one country is interdependent with its industry position in another country
Indicators of globalization:
Ratio of cross border investment to total capital investment
Proportion of industry revenue generated by all companies that compete in key world regions
Ratio of cross border trade to worldwide production
Global Market Participation
Marketing Mix Development
Adapt or Standardize
Concentration & Coordination of Marketing Activities
Competitive Moves
2. What are some of the growth strategies?

3. Which factors encourage globalization?
i. Trade : Integration of national economies into the international economy ii. Direct Foreign Investment iii. Capital-flows iv. International flows of workers and humanity
v. Technology flow
4. Driving Forces Affecting Global Integration
Multilateral trade agreements
Converging market needs – information revolution
Transportation and communication improvements
Product development costs
World Economic Trends
i. Experience Transfers ii. Scale Economies iii. Resource utilization iv. Global strategy
5. Standardization vs. Globalization
Globalization ( Standardization) : Developing standardized products marketed worldwide with a standardized marketing mix
Global localization (Adaptation): Mixing standardization and customization in a way that minimizes costs while maximizing satisfaction
i. Essence of segmentation ii. Think globally, act locally
6. What are the 4 management philosophies toward the world of business?
Ethnocentric Orientation :
i. Home Country is superior to others ii. Sees only similarities in other countries iii. Assumes products and practices that succeed at home will be successful everywhere iv. Leads to standardized or extension approach
Polycentric Orientation
i. Each country is unique ii. Each subsidiary develops its own unique business and marketing strategy iii. Multinational iv. Leads to a localized or adaptation approach, assumes that products must be adapted to local market conditions
Regiocentric Orientation
i. A Region is the relevant geographig unit
Geocentric Orientation
i. Entire world is a potential market ii. Strives for integrated global strategies iii. Global or transnational company iv. Pursues serving world markets from a single country or sources globally to focus on select country markets
v. Combination of extension and adaptation elements
Ch. 2.
1. Why do we study different economic systems? What are some of the differences and similarities among these economic systems?
Economic integration
Capital movements have replaced trade as driving force of world economy
Production has become uncoupled from employment
World economy as an dominating factor
E Commerce diminishes the importance of national barriers
Companies are forced to reevaluate business models

1) Market Capitalism
Individuals and firms allocate resources
Production resources are privately owned
Driven by consumers
Government’s role is to promote competition among firms and ensure consumer protection
2) Centrally Planned Socialism
Opposite of market capitalism; State holds broad power to serve the public interest; decides what goods and services are produced and in what quantities
Government owns entire industries and controls distribution
Demand exceeds supply
Little reliance on product differentiation, advertising, pricing strategy
3) Centrally Planned Capitalism
Command resource allocation is used extensively in an environment of private resource ownership
Example: Swedish government controls 2/3 of all spendings  Hybrid CPS,Capital.
4) Economic Freedom –