Textbook Study Guide 2

Textbook Study Guide 2 - Chapter 4: Developing a Global...

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Chapter 4: “Developing a Global Vision” 1. What does the idea of “global vision” involve? Recognizing and reacting to international marketing opportunities Using effective global marketing strategies Being aware of threats from foreign competitors in all markers Enables a manager to understand that customer and distribution networks operate worldwide, blurring geographic and political barriers and making them increasing irrelevant to business decisions 2. What are some fears and benefits of globalization? Fears o Millions of Americans have lost their jobs due to imports, production shifts abroad, or outsourcing of tech jobs. Most find new jobs—that often pay less. o Millions of others fear losing their jobs, especially at those companies operating under competitive pressure o Employers often threaten to outsource jobs if workers don’t accept pay cuts o Service and white-collar jobs are increasingly vulnerable to operations moving offshore Benefits o Expands economic freedom o Spurs competition (which drives down prices and increases product and service quality) o Raised the productivity and living standards of people in countries that open themselves to the global marketplace o For less developed countries, globalization offers access to foreign capital, global export markets, and advanced technology while breaking the monopoly of inefficient and protected domestic producers o Faster growth Reduces poverty, encourages democratization, and promotes higher labor and environmental standards o Acts as a check on governmental power by making it more difficult for governments to abuse the freedom and property of their citizens 3. What are some reasons expressed for concern about the effects of multinational corporations on less developed countries? Specifically, what is said about technology transfer? Multinational corporations sometimes support reactionary and oppressive regimes if it is in their best interests to do so The firms take more wealth out of developing nations than they bring in, thus widening the gap between rich and poor nations The wrong kind of technology is transferred to developing nations
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o Usually, it is capital-intensive (requiring a greater expenditure for equipment than for labor) and thus doesn’t substantially increase employment A “modern sector” then emerges in the nation, employing a small proportion of the labor force at relatively high productivity and income levels and with increasingly capital-intensive technologies 4. What does global marketing standardization involve? Involves producing uniform products that can be sold in the same way all over the world Communication and technology have made the world smaller so that almost all consumers everywhere want all the things they have heard about, seen, or experienced Presumes that the markets throughout the world are becoming more alike, so by practicing uniform production, companies should be able to lower production and
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Textbook Study Guide 2 - Chapter 4: Developing a Global...

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