Global Business Environment

Question 1

Technological and political changes favor globalization by

Answer 1

1) Reducing trade barriers
2) Reducing costs of coordination
3) Increasing economies of scale, and
4) Encouraging standardization and global branding

Question 2

Methods of expanding into international markets include:

Answer 2

1) Licensing
2) Exporting
3) Indirect export strategy operate through intermediaries
4) Direct investment, etc.

Question 3

International marketing has three board stages:

Answer 3

1) Export division
2) International division
3) Global organization

Question 4

Factors of national advantages include:

Answer 4

Comparative and Competitive advantage

Question 5

In the global marketplace when it can achieve a lower cost of production due to a focus on, and a cooperative specialization in, a particular product.

Answer 5

Comparative advantage

Question 6

When it can achieve a lower cost of production on particular items compared with firms in another country because of local factors.

Answer 6

Competitive advantage

Question 7

Broad strategies for global marketing organization are:

Answer 7

1) Multinational (transnational) strategy
2) Global strategy
3) International strategy
4) Multilocal (multidomestic) strategy

Question 8

This strategy adopts a portfolio approach. Its emphasis is on a national markets.

Answer 8

Multinational (transnational) strategy

Question 9

This strategy regards the worlds as one market. The product is essentially the same in all countries with some adaptions.

Answer 9

Global strategy

Question 10

The value chain is controlled and marketed from the organization’s home country, but products are sold globally.

Answer 10

International strategy

Question 11

This strategy uses subsidiaries in the host countries to control operations. The product is adapted for each country

Answer 11

Multilocal (multidomestic) strategy

Question 12

Two compromise strategies adopt elements of the broad strategies.

Answer 12

1) Glocal strategy

2) Regional strategy

Question 13

Seeks the benefits of localization and global integration

Answer 13

Glocal strategy

Question 14

Combines elements of multinational, international, and multilocal strategies.

Answer 14

Regional strategy

Question 15

Firms should consider the following elements when they engage in international trade.

Answer 15

1) Regional free trade zones
2) Cartel
3) Dumping

Question 16

Examples include the European Union (EU), the North American Free Trade Agreement (NAFTA), Mercosul and the Asian Pacific Economic Cooperation forum (APEC)

Answer 16

Regional free trade zones

Question 17

Is an organization of sellers who undertake joint action to maximize members’ profits by controlling the supply, and therefore the price, of their product.

Answer 17

Cartel

Question 18

Violates international agreements.

Answer 18

Dumping

Question 19

Is essential for firms that operate globally

Answer 19

Marketing program

Question 20

The possibilities for a marketing program lie on a continuum from a

Answer 20

Purely standardized marketing mix to a purely adapted marketing mix.