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Marketing Final Exam

A company and in some industries a global vision is a

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Unformatted text preview: ry. In fact, the United States has lost market share to imported products in many industries. U.S. managers must develop a global vision not only to recognize and react to international marketing opportunities but also to remain competitive at home. Often a U.S. firm’s toughest domestic competition comes from foreign companies. A global vision also enables managers to understand that customer and distribution networks operate worldwide. Adopting a global vision can be lucrative for a company, and in some industries a global vision is a business imperative. PTS: 1 REF: 55-56 Communication KEY: CB&E Model Strategy OBJ: 05-1 TOP: AACSB MSC: BLOOMS Synthesis 2. What is a multinational corporation? Discuss two multinational corporations with which you are familiar. ANS: A company that is heavily engaged in international trade, beyond exporting and importing, is called a multinational corporation. This type of firm moves resources, goods, services, and skills across national boundaries without regard to the country in which its headquarters is located. Most multinational corporations are enormous. Examples from the text include Caterpillar, General Electric, United Technologies, Deere, and Honeywell. See Exhibit 5.1. PTS: 1 REF: 57 OBJ: 05-2 Communication KEY: CB&E Model International Perspective TOP: AACSB MSC: BLOOMS Synthesis 3. Describe the four stages of business globalization. Why do most companies stop when they reach the third stage? ANS: Multinationals often develop their global business in stages. In the first stage, companies operate in one country and sell into others. Second-stage multinationals set up foreign subsidiaries to handle business in one country. In the third stage, they operate an entire line of business in another country. The fourth stage has evolved primarily due to the Internet. Generally, only hightech companies can ever reach this stage. For these firms, the executive suite is virtual. PTS: 1 REF: 57 OBJ: 05-2 TOP: AACSB Communication KEY: CB&E Model International Perspective | CB&E Model Strategy MSC: BLOOMS Synthesis 4. Traditionally, marketing-oriented multinational corporations have operated somewhat differently in each country, with segmentation strategies providing different marketing mixes. Today, there has been a trend toward global marketing standardization. What is global marketing standardization? Can companies truly follow the basic premise of the global marketing standardization concept? ANS: Global marketing standardization presumes that world markets are becoming more alike. Communication and technology have made the world smaller, so people everywhere want all the things they have heard about, seen, or experienced. Therefore, serving global markets with standardized consumer products on a large scale is an alternative to marketing global products on a segmentation basis. Firms practicing global marketing standardization produce “globally standardized products” to be sold the same way al...
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