Chapter 16 To Know

Question 1

Developing and selling products and services to all 7.6 billion people currently on the planet

Figuring out how to provide for the 9 billion by 2043

Answer 1

Global business bottom line

Question 2

Globalization is both

Answer 2

Personal and corporate

Question 3

The increased mobility of goods, services, labor, technology, capital throughout the world

The process of growing interdependence among elements of the global economy

Answer 3

Globalization

Question 4

6 reasons to go global

Answer 4

New markets: customers/ profits 
Sourcing: suppliers of goods/ services
Financing: capital to expand ops
Labor: low cost and skilled 
Risk: business, natural, county
Technology: communication, data

Question 5

Major reason to go global

Answer 5

To increase earnings

Question 6

Global strategic forms a business may take

Answer 6

Global (top left)
Transnational (top right)
International (low left)
Multinational (low right)

Question 7

Integration responsiveness grid

X & Y (the two pressures)

Answer 7

Pressure for local responsiveness (x)

Pressure for global integration (y)

Question 8

Being in every single town

Answer 8

Global integration

Question 9

Adjustment of food mix/products for different countries

Answer 9

Local responsiveness

Question 10

Invested and present in many countries
Coordinated brand image
Single corporate office strategy direction

Answer 10

Global

McDonalds ex

Question 11

Focus on importing and exporting
Strategic direction from home county
Low to moderate investment outside of home country

Answer 11

International

Xerox and Ducati ex

Question 12

Substantial investment in other countries
Focus on adapting products for local markets
Strategy is more home/host county directed

Answer 12

Multinational

Toyota example

Question 13

Substantial investment globally
Decision making, R&D, marketing distributed locally
Competitors compete globally

Answer 13

Transnational
Nestle ex
Coca-Cola and PepsiCo

Question 14

Ways to enter market from home country

Answer 14

Global sourcing
Exporting
Licensing
Franchising

Question 15

Ways to enter market in host country

Answer 15

Joint ventures

Foreign subsidiaries

Question 16

Importing is the first step

Get materials or services from around the world for local use

Answer 16

Global sourcing

Question 17

Example of Global sourcing

Answer 17

Boeing 787 Dreamliner

Question 18

Selling local (home) country products outside of the home country

Answer 18

Exporting

Question 19

Example of exporting

Answer 19

Gulfstream G650: largest number of its planes sold elsewhere than the U.S

Question 20

A form of business by which the owner (licensor) gives rights to s buyer (licensee) for specific uses of intangible or tangible property (a license)

Answer 20

Licensing

Question 21

Renting or leasing an intangible or tangible asset

Answer 21

Global licensing

Question 22

Ex of intangible licensing

Answer 22

Movie theatre renting an intangible movie

Question 23

Example of tangible licensing

Answer 23

Disney rents or gives a license to a company to make tangible products such as figurines

Question 24

A form of business by which the owner (franchiser) of a product, service or method obtains distribution through affiliated dealers (franchisees)

Answer 24

Franchising

Question 25

Examples of franchising

Answer 25

Yum Brands a U.S company has three divisions: Pizza Hut, KFC, Taco Bell

Question 26

Number one advantage of global franchising

Answer 26

Capital expansion

Question 27

Examples of joint ventures

Answer 27

GM & SAIC
-selling in South America
Xerox and UAE
-service partnership

Question 28

Examples of Subsidaries

Answer 28

ABInBev (Belgium Owned)
Smithfield (China Owned)
Firestone (Japanese Owned)
Ben and Jerry’s (England & Dutch)