Quizlet_Flashcards_Global_Marketing_Complete
(21 cards)
Which challenges do companies face when entering a new international market (in the context of global expansion)?
• Cultural Differences: Misunderstanding local customs, consumer behavior, or communication styles can harm the brand image.
• Legal and Regulatory Barriers: Laws regarding product safety, labeling, advertising, and employment vary by country.
• Economic and Political Risks: Instability in exchange rates, inflation, or political unrest can threaten operations.
• Logistics and Supply Chain Complexities: Transporting goods across borders can lead to higher costs and longer delivery times.
• Competition: Local companies often understand the market better and may offer more competitive prices or culturally adapted products.
Why is it important to adapt marketing strategies to different cultures?
• Relevance: A message or product that works in one culture may be misunderstood or even offensive in another.
• Better Consumer Engagement: Cultural alignment builds trust and emotional connection.
• Higher Sales and Market Penetration: When consumers feel understood, they are more likely to buy.
• Examples: McDonald’s changes its menu to reflect local tastes (e.g., no beef in India; green tea-flavored desserts in Japan).
What are the 3 most important sustainable development goals (SDGs) to you? (Justify).
• Climate Action (SDG 13): Climate change affects everyone. Companies must reduce emissions and adopt greener practices to ensure long-term survival.
• Quality Education (SDG 4): Education empowers individuals and promotes innovation. Companies benefit from a skilled workforce.
• Decent Work and Economic Growth (SDG 8): Ensures fair wages, safety, and stable economies — all vital for sustainable business operations.
Define and compare in sourcing and outsourcing.
• Outsourcing: Delegating business functions to external organizations, often in lower-cost countries.
- Example: Todd’s company outsourced IT support to India to reduce costs.
• Insourcing: Bringing external jobs in-house or keeping them local.
- Example: Insourcing production to maintain quality.
• Comparison:
- Cost: Outsourcing is cheaper short-term; insourcing may cost more but ensures better control.
- Control: Insourcing allows more oversight.
- Flexibility: Outsourcing helps scale quickly; insourcing provides stability.
Define globalization, and list 2 pros and cons.
Globalization is the increasing interconnectedness of countries through trade, communication, technology, and culture.
• Pros:
- Access to international markets and a larger customer base.
- Shared technology and knowledge.
• Cons:
- Job losses in developed countries.
- Cultural homogenization and loss of local traditions.
What is free trade? How does it oppose to protectionism?
• Free Trade: Exchange of goods/services with minimal restrictions.
• Protectionism: Government actions to protect local industries.
• Opposition:
- Free trade promotes competition and lower prices.
- Protectionism protects local jobs and businesses but may raise costs.
Why is it important to respect cultural differences in international marketing?
• Builds trust and brand loyalty.
• Avoids offense: Misuse of symbols/language can lead to backlash.
• Enhances effectiveness: Tailored messages resonate more.
• Example: Coca-Cola adapts branding to local culture.
Define one of the following marketing strategies: Franchise.
Franchise: A business model where a franchisor lets a franchisee operate under its brand.
• Example: McDonald’s globally with local menu adaptations.
• Advantages: Fast growth, low capital risk.
• Disadvantages: Less control, depends on franchisee behavior.
Define expanding Global Reach.
Refers to growing international presence by entering new regions, adapting products, and forming partnerships.
• Exporting products.
• Local branches/factories.
• Digital platforms for global access.
Which company uses this strategy? and explain how it is implemented
• Apple:
- Global manufacturing (e.g., Japan, China).
- Sells in 100+ countries via stores and online.
- Adapts to local laws (e.g., EU privacy rules).
What are the 3 most important sustainable development goals (SDGs) to you? (Justify).
• Climate Action (SDG 13): Climate change affects everyone. Companies must reduce emissions.
• Quality Education (SDG 4): Promotes innovation and empowers individuals.
• Decent Work and Economic Growth (SDG 8): Ensures stable economies and fair wages.
What is Free Trade? What are its advantages and disadvantages? Name examples of free trade agreements.
• Definition: Unrestricted exchange of goods/services across borders.
• Advantages: Lower prices, more choices, economic growth.
• Disadvantages: Local industries may suffer, exploitation risks.
• Examples: NAFTA/USMCA, EU single market, ASEAN.
What is Protectionism? What are its advantages and disadvantages? Name examples of protectionist measures.
• Definition: Policies limiting imports to protect local industries.
• Advantages: Protects jobs and local businesses.
• Disadvantages: Higher prices, trade war risk.
• Examples: Tariffs, quotas, subsidies, import bans.
Free Trade VS Protectionism: compare the two concepts.
• Free Trade: No restrictions, promotes competition and efficiency.
• Protectionism: Limits imports, supports domestic jobs.
• Examples: EU single market (Free Trade), US tariffs on Chinese steel (Protectionism).
If you had to choose a country to work abroad, which country would you choose, and why?
• Canada: Safe, diverse, English & French spoken, strong economy, good healthcare and worker rights.
You want to open your own business, choose your activities and explain to me who you are going to insource and outsource.
• Sustainable fashion brand.
• Insource: Design and marketing.
• Outsource: Manufacturing (Portugal/India), IT and website development.
What would be an advantage and a disadvantage?
• Advantage: Reduces costs, access to skilled partners.
• Disadvantage: Less control over quality and delivery.
• Solution: Choose reliable partners and clear communication.
Define one of the following marketing strategies: EXPORT.
• Export: Selling home-produced goods in foreign markets.
• Advantages: Low entry cost.
• Disadvantages: Transport/customs issues.
• Example: French wine sold in Japan.
Define one of the following marketing strategies: JOINT VENTURE.
• Two companies create a new one and share risks and profits.
• Example: Sony Ericsson.
• Pros: Combined strengths.
• Cons: Risk of conflict.
Define one of the following marketing strategies: STRATEGIC ALLIANCE.
• Cooperation without creating a new company.
• Example: Starbucks + PepsiCo bottled drinks.
• Pros: Shared resources.
• Cons: Temporary, less commitment.
Define one of the following marketing strategies: DIRECT INVESTMENT.
• Building or buying a business abroad.
• Example: Toyota factory in USA.
• Pros: Full control.
• Cons: High cost and risk.
