Pts 1 ref 55 obj 05 2 top aacsb communication tbe

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PTS: 1 REF: 55 OBJ: 05-2 TOP: AACSB Communication | TB&E Model International Perspective 3. Traditionally, marketing-oriented multinational corporations have operated differently in each country, with segmentation strategies that provided different marketing mixes. Today, there has been a trend to- ward 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 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 all over the world. True global marketing standardization is not entirely evident because marketing mix variations still ex- ist. However, companies are moving toward variations of global marketing in which marketing mix modifications are kept to a minimum. While marketing mixes can be similar, variations in products, pricing, promotional copy, and distribution types may be necessary for each country. PTS: 1 REF: 56-57 OBJ: 05-2 TOP: AACSB Communication | TB&E Model International Perspective | TB&E Model Strategy 4. 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 another. 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 high-tech companies can ever reach this stage. For these firms the executive suite is virtual
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PTS: 1 REF: 55 OBJ: 05-2 TYPE: Def TOP: AACSB Communication | TB&E Model International Perspective | TB&E Model Strategy 5. Assume you are the president of a company that manufactures wooden bowls, cutting boards, and spoons. Your company is considering marketing its kitchen items globally. List the five important ex- ternal environmental factors that should be examined for each country you are considering for this global venture. ANS: Culture Level of economic and technological development Political structure Demographic makeup Natural resources PTS: 1 REF: 57 OBJ: 05-3 TOP: AACSB Communication | TB&E Model International Perspective | TB&E Model Strategy 6. Global legal structures are designed to either encourage or limit trade. Name and define five of these legal structures.
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