Chapter 4: Developing a Global Vision

Question 1

Define Outsourcing

Answer 1

Sending jobs (work) abroad.

Question 2

Define In Shoring

Answer 2

Returning production jobs to Canada

Question 3

What are some benefits of having Globalization in Developing Countries

Answer 3

It allows access to foreign capital, access to export markets, access t advanced technology, and to breaking monopoly of inefficient labour

Question 4

Define a Multinational Organization

Answer 4

Moving resources, goods, services, and skills across national boundaries without regard to the country in which they are headquartered

Question 5

What is Global Marketing Standardization

Answer 5

The ability to use standard marketing internationally; it’s the ability for a company to use the same marketing strategy from one country to the next, and across various cultures.

Question 6

Define Variation

Answer 6

Different products or different markets

Question 7

Define Standardization

Answer 7

Products being sold in the same way all over the world

Question 8

Define Combination

Answer 8

Product modification to meet the needs of the country they are in

Question 9

Define Multi-Domestic

Answer 9

When there are spare subsidiaries in other countries

Question 10

Define Culture as (external environment)

Answer 10

Common sets of values that are shared and establish what is socially acceptable

• Language, etc.

Question 11

Define Economic and Technological as (external environment)

Answer 11

One measure of the ability of citizens to buy goods and services

Question 12

Define a Global Economy

Answer 12

Forecasting global demand and economic growth requires an understanding of what is happening economically around the globe

Question 13

Define Political Structure and Actions

Answer 13

Less regulation fosters the strongest economies

Question 14

Define a Tariff

Answer 14

A tax levied on the goods entering a country

Question 15

Define a Quota

Answer 15

A limit on the amount of a specific product that can enter a country. Companies request quotas as a means of protection from foreign competitors

Question 16

Define a Boycott

Answer 16

The exclusion of all products from certain countries or companies. Governments use boycotts to exclude products from countries which they have political disputes

Question 17

Define Exchange Control

Answer 17

A law compelling a company earning foreign exchange from its exports to sell it to a control agency. A company wanting to buy goods abroad must first obtain foreign currency exchange from the control agency

Question 18

Define Market Grouping (AKA Common Trade)

Answer 18

Occurs when several countries agree to work together to form a common trade area that enhances trade opportunities

Question 19

Define a Trade Agreement

Answer 19

An agreement to stimulate international trade (i.e. NAFTA)

Question 20

What is NAFTA

Answer 20

An agreement between Canada, the US, and Mexico (free trade zone) – no tariffs on goods and services

Question 21

What is the EU

Answer 21

A free trade zone encompassing 28 European Countries

Question 22

What is the WTO

Answer 22

A trade organization that replaced the old Generation Agreement on Tariffs and Trade (GATT)

Question 23

Natural Resources

Answer 23

There is a shortage of natural resources (much more evident today)

Question 24

Define Promotion Adaption Strategies

Answer 24

Maintain the same products but alter messaging based on the way the product is used, how the culture internalizes messages, language barriers, and other cultural differences

Question 25

Define Place Options Strategies

Answer 25

Channel members vary globally, shopping behaviour varies globally, and innovation is often the key to success

Question 26

Define Pricing Options Strategies

Answer 26

Selling price, cost production, customers willing to spend, customers able to spend, costs, tariffs, taxes, insure (be careful not to generalize based on the economy)

Question 27

What are some other Pricing Considerations

Answer 27

Exchange Rates (appreciation, depreciation, floating exchange rates, Dumping (a form of price discrimination, creates serious problems in trade), Counter trade (fast growing way to conduct global business – all or part of the payment is in the form of other products or services)

Question 28

Define Exchange Rates

Answer 28

The Canadian Dollar relative to the US Dollar and the impact on Canadian Manufacturing

Question 29

Define the Impact of the Internet

Answer 29

Has made “going global” easy. Opening an e-commerce site on the Internet creates a global business, still being restrained by cultural issues, old rules, and regulations

Question 30

Define the Impact of Social Media and Marketing

Answer 30

The rapid penetration of the Internet, social media usage, and social media usage via mobile devices has created a huge communication opportunity for reaching global segments (groups). It not only allows global marketers to build their brands but to also understand the customers they are reaching in that particular global segment to ensure that messaging is culturally relevant