4.3+4.4

Question 1

What is glocalisation?

Answer 1

The global product and distribution of goods and services which are adapted to reflect and meet local demands.

Question 2

+ of glocalisation (2)

Answer 2

• can increase sales revenue + profitability

Question 3

Negative of glocalisation

Answer 3

• requires specialist knowledge of local and national markets which can increase costs

Question 4

ethnocentrism meaning

Answer 4

where the companies approach does not adapt to local needs; sticking to the business’ domestic practices

Question 5

Polycentrism meaning

Answer 5

where the companies approach is adapting to local needs

Question 6

geocentrism meaning

Answer 6

a mixture of the ethnocentric and geocentric approach. the business maintains and promotes he global brand name, but tailors to its products to local markets

Question 7

ethnocentrism + (1)

Answer 7

• costs are reduced (the business is not adapting to meet the needs of overseas markets)

Question 8

ethnocentrism - (1)

Answer 8

can result in marketing activities which do not appeal to the target overseas market

e.g if Macdonalds sold pork in UAE ( Islam is the official religion)

Question 9

geocentrism + (1)

Answer 9

-products are tailored to suit the needs of the local market, so are likely to sell well

Question 10

geocentrism - (1)

Answer 10

• higher cost of product development

Question 11

polycentrism + (1)

Answer 11

• can increase market share
• can increase the exploitation of opportunities

Question 12

polycentrism - (1)

Answer 12

• business costs are increased as marketing approaches are refined to meet the needs of local + national markets

Question 13

what are the 4 elements of Ansoff’s matrix ?

Answer 13

• market development
• market penetration
• product development
• diversification

Question 14

market penetration meaning

Answer 14

existing products to existing markets

Question 15

market development meaning

Answer 15

existing products to new market s

Question 16

diversification meaning

Answer 16

new products to new markets

Question 17

product development meaning

Answer 17

new products to existing markets

Question 18

+ of diversification (2)

Answer 18

• can spread risk, gives business an alternative if the demand for one product declines
• opportunity for market share growth

Question 19

• of diversification

Answer 19

• new products and new markets means that business will have limited expertise in each (increases risk)

Question 20

what are the 4 p’s

Answer 20

• product
• place
• price
• promotion

Question 21

niche market meaning

Answer 21

a small and specialised market where businesses target the specific wants and needs of consumers

Question 22

what are the 4 main influences that affect global expansion of a business ?

Answer 22

• cultural differences
• tastes
• language barriers
• unintended meanings

Question 23

how do cultural differences/tastes affect a business considering global expansion ?

Answer 23

• businesses may need to adapt to the cultural differences and tastes of different countries, in order to expand

Question 24

how do language barriers affect global expansion of businesses? (2)

Answer 24

• businesses may not have the skill and expertise within its trade across different languages
• this may lead to miscommunication/ lack of communication

Question 25

unintended meanings, how does it affect the global expansion of businesses ? (2)

Answer 25

- inappropriate/ inaccurate branding, translations and promotions can affect the expansion of a business - a business may need to recognise differences in cultural norms throughout countries it is operated in

Question 26

what is an MNC ?

Answer 26

A multinational organisation is a business which has production facilities in more than one country.

Question 27

what are the main variables that affect a businesses decision to enter a country ? (5)

Answer 27

- The political stability - Local competition - Size of the market - Local infrastructure - Local Resources

Question 28

what are the main impacts of MNCs on the local economy

Answer 28

- employment - competitiveness - the community -exploitation

Question 29

how does an MNC affect the employment within the local economy

Answer 29

- they can provide employment (reducing unemployment and providing wages to employees)

Question 30

how does an MNC affect the competitveness within the local economy

Answer 30

- they may increase competitveness and reduce the number of local businesses

Question 31

how does an MNC affect the community within the local economy

Answer 31

- they provide goods and services for the local community (depending on the area the community may have not had access to this previously)

Question 32

how does an MNC affect the exploitation within the local economy (3)

Answer 32

- mncs may exploit poor working conditions which may be legal in foreign countries but illegal in the home market -cheaper labour costs, and lower costs per unit (could may employees work longer hours) -may prioritise profit using cost-effective and non-renewable resources harming the environment

Question 33

impacts of MNCs on the national economy

Answer 33

- FDI - Balance of payments - Opportunities - Economic growth -Tax revenues