Section 1 - An Introduction

Question 1

Marketing

Answer 1

The activities that research people; the intent being to design and implement communication that will enhance business opportunities.

Question 2

Standardization vs. Adaptation

Answer 2

The extent to which each aspect of a marketing plan needs to be adjusted to accommodate different country markets.

Question 3

Concentration
Coordination
Integration

Answer 3

Concentration: A defined marketing plan applied to one country;
Coordination: A modified marketing plan applied to the same customer segment, but multiple countries.
Integration: Multiple marketing plans applied to similar segments in multiple countries.

Question 4

Product/Market Growth Matrix

Answer 4

Existing Markets/Existing Products: Market penetration
Existing Markets/New Products: Product development
New Markets/Existing Products: Market development
New Markets/New Products: Diversification strategy

Question 5

Trends Affecting Global Business Today

Answer 5

Constant negotiation of trade agreements.
Expansion of international trade with developing countries in Latin America, Asia, and Eastern Europe.
Threats of terrorism.
Confidentiality.
The Internet’s attack on national borders and cultures.
The economic power of BRIC.

Question 6

Self-Reference Criterion (SRC)

Answer 6

An unconscious (and singular) reference to one's own cultural values, experiences, and knowledge as a basis for decisions. 
This perspective restricts the ability to assess a foreign market opportunity.

Question 7

Strategies for International Expansion: Ethnocentric, Polycentric, Regiocentric, Geocentric

Answer 7

Ethnocentric orientation strategy is very standardized: low costs, low sales, low profits.
Polycentric orientation strategy: highly customized for each market. High costs, high sales, low profits.
Regiocentric orientation strategy: one marketing plan for a specific region or group of countries. Shared costs, higher sales, higher profits.
Geocentric orientation strategy: the entire world is a single market; marketing is fully integrated with slightly different perspectives for different markets. Shared costs, higher sales, higher profits.

Question 8

Globalization: 4 Points of View

1. Support
2. Opposition
3. Observers (Philosophers)
4. Macro-Economists

Answer 8

Support: satisfies customer needs regardless of where they are and brings cultures closer to common beliefs.
Opposition: global organizations control weak governments for their own benefits; only helps the powerful and wealthy.
Observers: they see it as a short-term event or phase in the evolution of business.
Macro-Economists: their work is meaningless because it contradicts itself and they get their predictions wrong 50% of the time.