Quiz #1 (ch. 1-2)

Question 1

What are the five drivers of market globalization?

Answer 1

1. Industrialization, economic development, and modernization
2. Worldwide reduction of barriers to trade and investment
3. Market liberalization and adoption of free markets
4. Integration of world financial markets
5. Advances in technology

Question 2

I open a firm in Japan and am having trouble finding talent that wants to go against the status quo. What type of risk is this?

Answer 2

Cross-cultural risk

Question 3

Risks in ethical practices is what type of risk?

Answer 3

Cross-cultural risk

Question 4

Born-global firms

Answer 4

Firms that will have 25% of sales overseas within the first three years of business.

Question 5

Social/political unrest and instability is what type of risk?

Answer 5

Country risk

Question 6

What are the societal consequences of market globalization discussed in class?

Answer 6

1. Contagion
2. Loss of national sovereignty
3. Offshoring and the flight of the jobs
4. Effect on the poor
5. Effect on the environment
6. Effect on national culture

Question 7

What are the four types of IM risk?

Answer 7

Commercial risk
Cross-cultural risk
Country (political and legal) risk
Currency/financial risk

Question 8

According to HBR (Cellzone to iPad), what are the top three reasons new products fail?

Answer 8

1. Spend time and $$$ on new product dev and manufacturing, not enough resources left for marketing the completed product.
2. Fall in love with product and don’t change it. You need to make sure you leave time to educate people on the product.
3. Need to think about how to sell product, not the product itself.

Question 9

What are the five dimensions of market globalization?

Answer 9

1. Integration and interdependence of national economies
2. Rise of regional economic integration blocs (ex. EU, NAFTA)
3. Growth of global investment and financial flows
4. Convergence of buyer lifestyles and preferences
5. Globalization of products and services

Question 10

International Marketing (IM)

Answer 10

Marketing activities coordinated and integrated across the markets of multiple countries.

Question 11

Competitive intensity

Answer 11

A form of commercial risk, how much competition is already in place?

Question 12

What are the five reasons firms participate in IM?

Answer 12

1. Customers
2. Sales
3. Talent
4. Savings
5. Efficiency

Question 13

Why did Uber leave Denmark?

Answer 13

Laws were passed that require mandatory fare meters and occupancy detectors.

Question 14

Home Depot moved into China but promptly moved out. What did they fail to account for that IKEA recognized?

Answer 14

Cross-cultural risk. Asians have different shopping styles.

Question 15

Timing of entry is what type of risk?

Answer 15

Commercial risk

Question 16

What are the four key global trends?

Answer 16

1. Developed countries’ labor forces substantially age and decline
2. Population growth increasingly concentrated in emerging countries
3. Economic power shifts to developing nations
4. World’s population becoming global community

Question 17

The examples of Pee Cola and the Nokia Lumia failed to account for what risk?

Answer 17

Cross-cultural risk.

Question 18

Globalization

Answer 18

The interconnectedness of national economies and the growing interdependence of buyers, producers, suppliers, and governments around the world.

Question 19

Cultural distance is what type of risk?

Answer 19

Cross-cultural risk

Question 20

What are the five participants of IM that we discussed in class?

Answer 20

1. Multinational enterprises (MNE)
2. Small/medium businesses
3. State-owned firms
4. Born-global firms
5. Non-profits

Question 21

What are the two forms of competitive intensity?

Answer 21

1. Fragmented market: A bunch of small players in the market so it would be hard to stand out.
2. Concentrated market: A few big players in the market, so hard to gain market share.