Test 1-chapter 1

Question 0

financial measures of global industries

Answer 0

Cross-border trade / total worldwide production
Cross-border investment / total capital investment
% of industry revenue generated by companies tat compete in all key world regions

Question 1

Globalization of markets

Answer 1

Historically distinct and separate markets are merging into one huge global marketplace:
Mostly not consumer product markets
mostly industrial products
tastes and preferences of consumers converging

Question 2

levels of international marketing involvement

Answer 2

Domestic Marketing- Low or no international commitment; domestic focus
Export Marketing- limited international commitment. Involves direct or indirect export; ethnocentric

International Marketing- Substantial international commitment. Focus on countries/regions; Polycentric or Regiocentric

Global Marketing- Extensive international commitment. Focus on market segments rather than countries regions; geocentric

Question 3

EPRG- World orientation- Ethnocentric

Answer 3

Assumption- National superiority
Competitive response- standardized products
company type- domestic or international

Question 4

EPRG World orientation- Polycentric

Answer 4

Assumption- all markets unique
Competitive response- local/adaption approach
Company type- multinational company

Question 5

eprg world orientation- Regiocentric

Answer 5

Assumption- region is relevant geographic unit
Competitive response- develop regional strategy
Company type- global or transnational

Question 6

eprg world orientation- geocentric

Answer 6

assumption- entire world is seen as market
competitive response- develop inegrated world strategy
company type- global or transnational

Question 7

Drivers of international expansion

Answer 7

Competition
regional economic and Politcal integration
technology
improvements in transportation in telecommunication
economic growth
Transition to market economy
Converging Consumer needs

Question 8

Firm specific Drivers

Answer 8

• Product Live Cycle Considerations: opportunity to prolong product lifecycle by entering growth markets
• High New Product Development Costs:firm must look beyond home country market to recover investment costs
• Standardization, Scale Economies, Cheap Labor:Price competition during maturity drives firm to new international markets
• Experience Transfers:experience in one country serves as basis for strategies in new international markets

Question 9

Obstacles to internationalization- Self Reference Criterion

Answer 9

• Conscious and unconscious reference to own national culture while operating in the host country
• To counter the impact of the elf-reference criterion, the corporation must select appropriate personnel for international assignments and engage in sensitivity training

Question 10

Obstacles to inter.- Government Barries

Answer 10

-Restrictions places on foreign corporations by imposing tariffs, import quotas, and other limitations, such as restrictive import license awards

Question 11

Obstacles to inter.- Barries imposed by international competition

Answer 11

• Blocked channels of distribution
• Exclusive retailer agreements
• Price reductions at the time of market entry
• Advertising Blitzes