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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.
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
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.
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?
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.
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
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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This document was uploaded on 09/29/2013.
- Fall '13