lecture 12

Question 1

reason for globalization (what makes globalization easy?)

Answer 1

• ease for internet communication
• ease for communication in english
• reduced barriers for international trade

Question 2

globalization and localization

Answer 2

• globalization –> companies and workers compete globally
• localization –> products and services needs to be localized to meet target market’s demands

Question 3

3 important payments to the franchisor

Answer 3

1. a royalty for the trademark
2. reimbursement for the training and advisory services given to the franchisee
3. a percentage of the individual business unit’s sales –> less investment costs for the franchisor

Question 4

franchisee-owned outlets vs company owned outlets

Answer 4

franchisee owned :
- less investment costs
- faster geographical expansion
- works well with entrepreneurs and simple operations

company owned :
- company holds larger part of profit
- close monitoring and control of operations
- works well in a rapid changing environment

Question 5

sustainability

Answer 5

development that meets the needs of the present without compromising the ability of future generations to meet their own needs