Chapter 1 Notes

Chapter 1 Notes - Mos1020AFall2009RaymondLeduc ReadingNotes

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Mos 1020A – Fall 2009 – Raymond Leduc Reading Notes GLOBAL BUSINESS TODAY 2 nd  Edition CHAPTER 1: GLOBALIZATION     OPENING CASE: Wal-Mart, Tesco, Carrefour, and Metro Group Factors contributing to their recent international growth: o for retailers to enter foreign nations on a significant scale o Many of them faced market saturation and slow growth in their domestic  markets and therefore expanded internationally to boost sales growth o Carrefour began to expand internationally first, and other retailers began to  quickly follow suit in order to stay competitive o The retailers believed that by expanding internationally, they could take  advantage of economies of scale and global buying power o They believed that they could use the skills/knowledge/experience that  allowed them to dominate their domestic market to help them dominate  globally Problems faced: o Different cultural preferences: Had to buy supply different products in each country to satisfy consumer  wants Could therefore not reap the benefits of economies of scale Ways different cultures preferred to shop: E.g. Indonesians preferring street markets to clean Wal-Mart stores Retailing models aren’t always easy to transfer from one location to  another
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Differences in labor costs Sophistication of local supply Ahold (company from Holland) example: o Varies its retailing formula and brand name from location to location o Pays attention to consumer preferences in different locations o “going global with a local face” INTRODUCTION Globalization: Barriers to cross-border trade and investment are tumbling Perceived distance is shrinking (advancements in transportation and  communications) National economies are merging into an interdependent global economic system Example:  o Car designed in Germany, assembled in Canada with components made in  the UK and Japan that were fabricated from Korean steel and Malaysian 
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This note was uploaded on 03/22/2010 for the course MOS 1020 taught by Professor Leduc during the Fall '09 term at UWO.

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Chapter 1 Notes - Mos1020AFall2009RaymondLeduc ReadingNotes

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