Globalization & MNC's Flashcards
How many beverage brands does CocaCole have?
239
What is CocaCola’s slogan?
Think globally act locally
What is the most global function of CocaCola?
Advertising
Who described the world as being tied together into a single globalized marketplace and village?
Freidman 1999
What word defines: “convergence towards a global system”?
Hyperglobalisation
What is the moderate approach to globalization?
that globalization is taking place more rapidly in some places than others and at different intensities.
What are the characteristics of globalization?
- Growth in capital economies.
- Growing connections between firms
- Advances in ICT
- Qualitative changes
What is Globalization?
Increasing and deepening interactions between individuals and organisations.
Who predicted that there would be a single global market where standardized goods would be sold?
Levitt 1983
What did Levitt fail to foresee?
The diversity of consumers and the markets.
What sector is the growth of global markets most seen in?
Sectors which rely on a standardized product/service for all consumers.
What are successful firms able to do?
- Source components globally
2. Providing products that adapt to the customers tastes at competitive prices.
What allows companies to break down the manufacturing processs
Globalization of production e.g Starbucks
What particular country and sector has attracted globalization of production?
India’s IT sector
What does globalization mean to the consumer?
- More Choice
- Lower Prices
- Blurred national identity
What does the Globalization index measure?
- Economic Integration
- Personal Contact
- Technology
- Political engagement
According to the Economic Intelligence Unit , who are the top 3 most globalized countries?
- Hong Kong
- Singapore
- Ireland
To whom is globalization viewed a threat to?
Smaller local interests and the environment.
Globalization is not always linked with low levels of public expenditure & poor social safety. Give an example.
Sweden & Denamrk
What are the spill over effects of Globalization?.
1.Opportunities for local firms to benefit form FDI
What company helped clean up eastern Europe?
Dow Chemicals
What are the benefits of Globalization to the Host Society?
- New Jobs
- Industrialization
- Technology transfer
- Spillover Effects
What are some of the disadvantages to the Host Society?
- Vulnerable to location shifts
2. Environmental Degradation
What are the Home Society Adverse Effects of globalization?
- Income Inequality
2. Loss of low skilled Jobs
What are the Home Society Benefit of globalization?
- Growth in outward FDI
- Increased Corporate Profits
- Increased shareholder value
Globalization is one of the many factors affecting?
The well being of the population
MNC’s generate __ of worlds output and __ of world trade.
50%
2/3
MNC’s account for __ of the manufacturing output in Ireland?
70%
MNC is
an enterprise that engages in FDI and owns or controls value adding actvities in more than one country
A firm that has engaged in trade activities with no FDI component is?
International firm
What are the 3(Triad) types of product strategy?
- Economy - lower prices & quality e.g US
- Value - e.g Japan
- Premium e.g EU
What company’s global operations allow it to spread costs
Proctor & Gamble
What theory states: “ MNC’s cannot merely rely on existing resources but must develop dynamic capabilities to create, deploy and upgrade resource in pursuit of sustained CA”?
Dynamic Capability Theory
What are the different MNC capabilities?
- Organisational
2 Technological
- Managerial
- International experience
What is the most important capability for MNC’s to develop?
Knowledge transfer
Why is there focus on developing MNCs?
As they are much smaller and have higher diversification when compared to the market focus MNC.
What constraints do developing MNC’s face?
- Resource copnstraints
- Lack of experience
3.International competition
What are the advantages of DMNC’s?
- Home government support
2. Flexibility
