Chapter 4

Question 1

Four different stages of globalization

Answer 1

1. Domestic
2. International
3. Multinational
4. Ggobal

Question 2

First stage of globalization

Answer 2

domestic: market potential is limited to home country
- production and marketing facilities located at home
- managers aware of global environment, consider foreign involvement

Question 3

Stage 2 of Globalization

Answer 3

International: exports increase, company adopts multi domestic approach using international division to deal with marketing of products in several countries individually.

Question 4

Third stage of globailization

Answer 4

Multinational: company has marketing and production facilities located in seperate countries and maintain ownership and control

Question 5

4th stage of globalization

Answer 5

global: stage of corporate international development transcend any single home country
- operate in true global fashion, making sales, acquiring resources in what country offers best opportunities and lowest cost
- ownership, control, and top management tend to be dispensed among several nationalities

Question 6

Economic Environment

Answer 6

• refers to the level of output each country can produce
• they are less-developed countries low per capita income
• developed countries high per capita income

Question 7

Infrastructure

Answer 7

country’s physical facilities that support economic activities

Question 9

Re