Question 1

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

Accepted Answer

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Question 2

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

Accepted Answer

Management and co-ordination costs are not a benefit of global strategy. In fact, managing and coordinating across multiple countries and cultures can be a significant challenge and expense for companies pursuing a global strategy. The other options, cost reduction, improved product quality, increased competitive leverage, and enhanced customer preference, are all potential benefits of a global strategy.

Question 3

In a globalisation strategy, market participation refers to:

Accepted Answer

Market participation in a globalization strategy refers to the selection of country markets and the level of activity in those countries. This can include choosing to enter new markets or expanding current activities in existing markets. The other options (A, B, C, and D) are important considerations when evaluating potential markets, but they do not specifically relate to market participation.

Question 4

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

Accepted Answer

Saturation of the local market would refer to a situation where a company is unable to expand its market due to already existing competition, which is a barrier to global integration. However, deregulation, the concept of a 'global village', and network organizations are all factors that facilitate global integration. Therefore, option E - all of the above - would be an incorrect answer.

Question 5

The AAA framework consists of which three elements:

Accepted Answer

The AAA framework, proposed by Pankaj Ghemawat, consists of Adaptation (adjusting to differences across countries), Aggregation (achieving economies of scale or scope), and Arbitrage (exploiting differences across countries).

Question 6

Which of the following statements is false?

Accepted Answer

Global marketing takes cultural values into consideration and recognizes their importance in shaping customer behavior and preferences. Therefore, the statement "Global marketing implies that cultural values are of limited importance" is false.

Question 7

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

Accepted Answer

Global marketing can fail if it disregards external constraints such as the level of marketing infrastructure in each market, competition in each market, interdependency with resource markets, and government and trade restrictions. All of these factors play a significant role in the success of global marketing.

Question 8

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

Accepted Answer

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Question 9

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

Accepted Answer

Interdependency refers to the interconnectedness and mutual reliance between nations, which means that events such as natural disasters can have a ripple effect across multiple countries and regions, instead of being confined to one nation.

Question 10

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

Accepted Answer

The three countervailing forces for market responsiveness listed in Hollensen (2007) are cultural differences, regionalisation/protectionism, and deglobalisation trends. Choice A includes trade agreements and globalisation trends, which are not listed as countervailing forces. Choice B includes government alternatives, which is not listed as a countervailing force. Choice D includes currency differences, which is not listed as a countervailing force. Therefore, the best choice is C.

Question 11

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.

Accepted Answer

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Question 12

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

Accepted Answer

Adopting a global strategy will require the organisation to have a more decentralized structure, with teams and resources distributed around the world to better serve global markets and customers. It may also require additional departments or positions, such as international legal counsel or global marketing specialists.

Question 13

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

Accepted Answer

The benefits of a global strategy fall into three areas: cost reduction, improved quality of products and services, and increased competitive leverage. "Enhanced customer preference" is not typically listed as a separate category of benefits.

Question 14

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

Accepted Answer

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Question 15

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

Accepted Answer

The term 'global village' actually refers to the idea that advances in communication and technology have made the world a smaller, more interconnected place where information can be shared quickly and easily across borders, breaking down geographical barriers. The concept was popularized by Marshall McLuhan in the 1960s.

Question 16

Opportunities for firms generated as a result of globalisation include:

Accepted Answer

All of the options listed are potential opportunities that firms may encounter as a result of globalisation. Achieving improved economies of scale through increased production volumes can lead to lower production costs and increased profitability. Access to raw materials can provide firms with the resources needed to manufacture and distribute products globally. The ability to operate in less-regulated environments may allow firms to reduce costs and operate more efficiently.

Question 17

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?

Accepted Answer

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Question 18

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

Accepted Answer

Mass customization requires a high degree of flexibility and standardization across the company's operations, which is best achieved through a global policy rather than a multinational policy. This is because a global policy provides a standardized approach to operations, products, and services that can be adapted to local market conditions, whereas a multinational policy involves multiple approaches tailored to each individual market.

Question 19

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

Accepted Answer

Global marketing recognizes that consumer preferences, as well as pricing strategies, vary across different regions, cultures, and countries. Therefore, businesses need to adapt their marketing efforts to fit local needs, rather than assuming a universal preference for high quality goods with consistent pricing strategies.

Question 20

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

Accepted Answer

While UN treaties may facilitate cooperation between countries, they are not necessarily a major force for global integration in the sense of promoting the free flow of goods, services, and information across borders. The other options (B, C, and D) are widely recognized as key drivers of economic and cultural globalization.

Quiz 11: Globalization