Deck 11: Globalization

Question 1

In basic terms, the objective of globalisation is to serve the global market by maximising the advantages and capabilities that individual countries have to offer. This will include:

A)Attractive interest rates
B)Manufacturing productivity
C)Research and development capability
D)Marketing experience
E)All of the above

Answer 1

E

Question 2

Which of the following is not one of the forces triggering globalisation?

A)Reduction in barriers to trade and investment
B)Improvements in communication
C)Global advertising
D)Integration of world financial markets
E)Market liberalisation and privatisation

Answer 2

C

Question 3

Advertising on a global rather than local level is consolidated through:

A)Fewer agencies
B)Global advertising and promotion
C)Agencies that design world campaigns
D)All of the above
E)Options A and C only

Answer 3

E

Question 4

Which of the following is NOT one of the four 'drivers' of globalisation?

A)Market
B)Supply
C)Cost
D)Competitive
E)Government

Question 5

The characteristics of a global firm will include an approach that:

A)Focuses on the achievement of economies of scale
B)Encourages the sharing of information between members of its value chain
C)Focuses more on a business concept rather than a geographic concept
D)All of the above
E)Options B and C only

Question 6

Globalisation involves taking strategic decisions from a particular country perspective and then modifying them in light of local conditions.

Question 7

China is currently the world's largest economic entity.

Question 8

Which of the following are risks that must be weighed by the company before entering a foreign market?

A)Can it offer competitively attractive products?
B)Can the company understand the preference and buyer behaviour of consumers in another country?
C)Will it be able to adapt to another country's business culture?
D)Will it be able to deal effectively with foreign nationals?
E)All of the above

Question 9

Global citizens:

A)Are sceptical of claims by global companies
B)Care about how the firm behaves regarding the environment and other issues
C)Try to avoid buying transnationals products
D)Don't see anything special about a global brand compared to a local brand
E)Readily accept the global myth

Question 10

Globalisation overcomes the problem of different product standards in different countries.

Question 11

Globalisation is the process by which firms operate on a global basis, organising their structure, capabilities, resources and people in such a way as to address the world as one market.

Question 12

Hamel and Prahalad (1994) suggest that the core competencies for a firm must satisfy three specific tests. Which of the following is NOT one of those tests?

A)The competency must be in a standardised form
B)The competency must be able to extend to satisfy the newly developing markets
C)The competency must make a major contribution to customer perceived value
D)The competency must be competitively unique
E)Options B and C only

Question 13

Cost drivers for globalisation include:

A)Increasing levels of foreign ownership
B)Tariffs and trade barriers
C)Relative labour costs
D)Converging per capita incomes
E)Options A and B only

Question 14

What are the key tenets of the philosophy of globalism? How do these concepts translate into practice when it comes to businesses operating on the international stage?

Question 15

Outline the key trends in globalisation and give examples of companies that have taken advantage of these trends to expand their business.

Question 16

According to Yip (2003), which of the following is NOT a global strategy lever?

A)Global competitive moves
B)Global market participation
C)Global location of activities
D)Global marketing
E)Global telecommunications

Question 17

Which of the following is INCORRECT? A global strategy means that a company competes on the basis of:

A)Its entire combination of competencies
B)Competing on a country to country basis
C)Integrating its activities and communications
D)Infrastructure in all its markets
E)Products in all its markets

Question 18

Globalism is a philosophy based on an integrated, standardised world where people buy, sell and share common ________.

A)Services
B)Products
C)Ideas
D)All of the above
E)Options A and B only

Question 19

The benefits of standardisation include cost savings, improved planning and control and consistency with customers.

Question 20

Global advertising involves designing world campaigns but adapting to local markets.

Question 21

Globalisation strategy is multidimensional, requiring choices along at least five strategic dimensions. Which of the following is NOT a strategic dimension of globalisation strategy?

A)The location of value-adding activities
B)The use of worldwide brand names
C)The customisation of the product or service
D)The use of global competitive strategies
E)The standardisation of the product or service

Question 22

Which of the following is NOT a benefit of global strategy?

A)Cost reduction
B)Improved product quality
C)Management and co-ordination costs
D)Increased competitive leverage
E)Enhanced customer preference

Question 23

In a globalisation strategy, market participation refers to:

A)The number of potential customers in the target country
B)The number of existing competitors in the target country
C)The proportion of the population earning above the average income in the target country
D)The distribution of wealth between different market segments within the target country
E)The choice of country markets and the level of activity in these countries

Question 24

Which of the following is NOT a force for global integration?

A)Deregulation
B)'Global village'
C)Network organisations
D)Saturation of the local market
E)All of the above

Question 25

The AAA framework consists of which three elements:

A)Alliances; allocation; aggregation
B)Adaptation; alliances; arbitrage
C)Adaptation; aggregation; alliances
D)Alliances; arbitrage; allocation
E)Adaptation; aggregation; arbitrage

Question 26

Which of the following statements is false?

A)Global marketing implies that customers behave in the same way in different countries
B)Global marketing implies that world wants are becoming homogenised
C)Global marketing implies some form of standardisation
D)Global marketing implies that cultural values are of limited importance
E)All of the above statements are true

Question 27

Depending on the level of planning and implementation, global marketing can sometimes fail to take into account external constraints such as:

A)The nature of marketing infrastructure in each country
B)The competitive situation in each market
C)The interdependency with resource markets
D)Government and trade restrictions
E)All of the above

Question 28

Sheth and Parvatiyar (2001) and Segal-Horn (2002) suggest that there are ________ major forces for global integration.

A)Three
B)Five
C)Six
D)Four
E)Seven

Question 29

Interdependency means that the impact of events such as natural disasters are no longer contained to a single nation.

Question 30

Countervailing forces for market responsiveness fall into three areas (Hollensen 2007) which are:

A)Trade agreements, regionalisation/protectionism, deglobalisation trends
B)Cultural differences, government alternatives, deglobalisation trends
C)Cultural differences, regionalisation/protectionism, deglobalisation trends
D)Currency differences, regionalisation/protectionism, deglobalisation trends
E)Cultural differences, trade agreements, globalisation trends

Question 31

Outline the steps that need to be taken in developing a global strategy. Take a product or company of your choice and show how these steps are implemented in practice.

Question 32

The decision to adopt a global strategy will impact on the structure of the organisation.

Question 33

The benefits of a global strategy fall into four areas: cost reduction, improved quantity of products, enhanced customer preference and increased competitive leverage.

Question 34

Which type of strategy is most likely to rely on alliance agreements to leverage resources?

A)Global leader
B)Global follower
C)Global challenger
D)Global defender
E)Global niche

Question 35

The term 'global village' refers to the fact that most countries worldwide are still segmented on the basis of small geographic population bases.

Question 36

Opportunities for firms generated as a result of globalisation include:

A)Achieve improved economies of scale
B)Access to raw materials
C)Ability to operate in less-regulated environments
D)All of the above
E)Options A and C only

Question 37

What are the key motivating factors that would encourage a successful domestic firm to enter the global market? What are the likely benefits and risks for the firm?

Question 38

Companies that are involved in mass customisation automatically adopt a global rather than multinational policy.

Question 39

Global marketing implies a universal preference for high quality goods with consistent pricing strategies.

Question 40

All of the following are considered major forces for global integration except

A)UN treaties
B)Removal of trade barriers
C)Standardisation of worldwide technology
D)Worldwide communication
E)All of the above are major forces for global integration

Question 41

Emerging multinationals are more risk-adverse and avoid being first mover.

Question 42

Forces for global integration and market responsiveness of both SMEs and large firms show them moving towards similar 'glocal' strategies.

Question 43

Which of the following is NOT given as a reason for emerging multinationals to be the first mover in a new market?

A)First movers enjoy the first pick of partners
B)First movers have higher profit margins
C)First movers are able to establish products and brands cheaply
D)First movers enjoy the first pick of sites and resources
E)All of the above are reasons to become a first mover

Question 44

What are the key micro and macro issues that a firm needs to consider when contemplating a global strategy? Discuss in relation to an Australian aluminium producer.

Question 45

Loss of national sovereignty is a:

A)Societal consequence of market globalisation
B)Firm level consequence of market globalisation
C)Dimension of market globalisation
D)Driver of market globalisation
E)Result of the internationalisation of the firm's value chain

Question 46

How will businesses need to adapt their international strategies to account for the growth of emerging Asian multinationals?

Question 47

According to Williamson (1997), the strategies necessary for any firm wishing to compete successfully in Asian markets include:

A)Build walled cities
B)Control the bottlenecks
C)Bring market transactions in-house
D)All of the above
E)Options B and C only

Question 48

Discuss the drivers and consequences of market globalisation.

Question 49

The emerging multinationals based in Asia tend to discourage company networks and information sharing by 'building walled cities'.

Question 50

Which of the following statements about the implications of globalisation for the marketing mix is true?

A)Global firms meet their taxation obligation through transfer pricing
B)The distribution needs of global firms account for a declining percentage of transport
C)Promotional messages within a country can be accessed by markets outside of that country
D)Global companies are restricted in their pricing methods by a variety of local governmental constraints
E)Country of origin effects are heightened

Question 51

An understanding of the macro aspects of globalisation is essential because it:

A)Enables an assessment of the likelihood that the local government might engage in defensive or offensive intervention
B)Sensitises managers to how such globalisation efforts might be perceived at the local level
C)Provides firms with a deeper understanding of their product strengths and weaknesses
D)All of the above
E)Options A and B only

Question 52

How successful has globalism been for the developing nations? Why have most of the benefits so far been achieved by the wealthier countries?

Question 53

Transnational Corporations (TNCs) impact on countries in which they operate at which of the following levels?

A)Economic/financial
B)Political/legal
C)Sociocultural
D)Technological
E)All of the above

Question 54

What are the implications of globalisation at the macro level? In your opinion do the benefits of globalisation outweigh the costs or do the costs outweigh the benefits?

Question 55

Transnational companies often supply outmoded plant and equipment when they invest internationally.

Question 56

Sport is now the most globalised legal business in the world.

Question 57

'Glocalisation' refers to a strategy of thinking global, acting local.

Question 58

Discuss the relationship between globalism and glocalisation.

Question 59

Offshoring and the flight of jobs is a driver of market globalisation.

Question 60

One of the downsides of globalisation is that it promotes homogeneity of culture.