Question 1

In pursuing a global marketing strategy a firm may:
A) Standardize its product
B) Use a consistent brand name
C) Allow each country manager full autonomy over local marketing strategy
D) (a) and (b)
E) (b) and (c)

Accepted Answer

Standardizing the product and using a consistent brand name are common tactics in pursuing a global marketing strategy, as they allow for greater efficiency and consistency in the marketing efforts across different countries. However, it is usually not recommended to give each country manager full autonomy over local marketing strategy as it can lead to inconsistencies and deviations from the overall global marketing strategy.

Question 2

What is meant by the term 'globalization'? Describe one approach to the quantification of this concept.

Accepted Answer

Globalization refers to the process of increased interconnectedness and interdependence among countries, economies, and cultures. It involves the exchange of goods, services, information, and ideas on a global scale, leading to the integration of economies and societies around the world.

One approach to quantifying globalization is through the KOF Index of Globalization, which measures three main dimensions of globalization: economic, social, and political. The economic dimension includes variables such as trade and investment, the social dimension includes variables related to communication and information flows, and the political dimension includes variables related to international relations and cooperation. By quantifying these dimensions and their respective variables, the KOF Index provides a comprehensive measure of globalization, allowing for comparisons across countries and over time. This approach helps to capture the complex and multifaceted nature of globalization, providing valuable insights into its impact and extent.

Question 3

To be considered 'global' firms must have operations in every country in the world.

Accepted Answer

While having operations in many countries is a characteristic of a global firm, it is not necessary for a company to have operations in every country in the world to be considered global. A company can be considered global if it operates in multiple regions or has a significant presence in key global markets.

Question 4

How does technological innovation drive globalization?

Accepted Answer

The answer of How does technological innovation drive globalization?...

Question 5

Distinguish between a multi-domestic and a global marketing strategy.

Accepted Answer

The answer of Distinguish between a multi-domestic and a global...

Question 6

One of the biggest problems with implementing a global marketing strategy is:
A) Identifying homogenous consumer segments in various countries
B) Recruiting culturally literate marketing managers in Asia
C) Developing a polycentric pricing strategy
D) Devising a cost-based transfer pricing scheme
E) Comparing countries on Dreher's index of globalization

Accepted Answer

One of the biggest challenges in implementing a global marketing strategy is identifying homogenous consumer segments in various countries. Consumer behavior, preferences, and purchasing patterns may vary significantly across different regions, cultures, and economic conditions. Therefore, companies must conduct in-depth market research to understand these variations and develop tailored marketing approaches that resonate with local audiences.

Question 7

Which of the following (if any) is a driver of globalization?
A) Consumers who are exposed to foreign brands when they travel internationally and demand access to those brands in their home countries.
B) The reduction in tariff and non-tariff barriers around the world
C) The need for companies to reduce manufacturing costs
D) All of the above
E) None of the above

Accepted Answer

All three options listed are commonly recognized drivers of globalization. Consumers who travel internationally or are exposed to foreign brands through media, internet, etc., create demand for those brands in their home countries, which can lead to companies expanding their markets globally. The reduction in tariff and non-tariff barriers around the world, such as free trade agreements, makes it easier and cheaper for companies to conduct business across borders. And finally, the need for companies to reduce manufacturing costs and stay competitive in the global market can lead them to outsource production or source materials from countries with lower labor costs.

Question 8

Dreher (2006) measures globalization on three dimensions: economic, social and political. The political integration dimension would capture:
A) Levels of political risk
B) The number of political parties in the country
C) Diffusion of government policies around the world
D) Tendency towards socialism as a form of government

Accepted Answer

The political integration dimension of globalization, as measured by Dreher (2006), focuses on the diffusion of government policies around the world. This means that countries are increasingly influenced by policies and decisions being made in other parts of the world, leading to greater political integration. This is different from levels of political risk, the number of political parties, or tendency towards socialism, which may or may not be impacted by globalization.

Question 9

When a company localizes its important decisions at head office and is largely driven by the needs of consumers in its home market it is described as pursuing a (n) __________________ strategy.
A) Regiocentric
B) Ethnocentric
C) Polycentric
D) Geocentric

Accepted Answer

An ethnocentric strategy is characterized by decision making centralized at the company's home office, with an emphasis on the needs and values of the home market. This approach is founded on the belief that the company's home market represents the standard for doing business, and the company attempts to replicate this model in other markets as much as possible.

Question 10

Define the term 'Glocal' Marketing. Provide one real world example of a company that follows such a strategy.

Accepted Answer

The answer of Define the term 'Glocal' Marketing. Provide one...

Question 11

Dreher (2006) measures globalization on three dimensions: economic, social and political. The economic integration dimension would capture:
A) The extent to which the government restricts trade and investment flows
B) The extent to which the economy is recession prone
C) The extent to which the country's economic policies are internally consistent
D) The extent to which economic benefits are equitably shared in society

Accepted Answer

The economic integration dimension in Dreher's measurement of globalization captures the extent to which trade and investment flows are restricted by the government.

Question 12

How does global marketing differ from domestic marketing?

Accepted Answer

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Question 13

Dreher (2006) measures globalization on three dimensions: economic, social and political. The social integration dimension would capture:
A) Levels of social assistance in the countries measured
B) Degree of social interaction within the host country
C) Flow of ideas and movement of people between countries
D) Tendency towards socialism as a form of government

Accepted Answer

The social integration dimension of globalization, according to Dreher (2006), refers to the flow of ideas and movement of people between countries. This dimension focuses on the cultural exchange and interaction that occurs between different countries and is not related to levels of social assistance, political systems, or social interaction within a host country.

Question 14

McDonald's recognizes that, compared to other societies, Europeans have a more liberal attitude towards alcohol consumption. In Germany this family oriented restaurant chain has included beer on its menu. This approach to marketing is referred to as:
A) 'Glocalization'
B) Strategic differentiation
C) Psychographic differentiation
D) Strategic patterning

Accepted Answer

Glocalization is a marketing strategy in which global companies adapt their products and services to the local culture and preferences of each market. In this case, McDonald's recognized the cultural difference regarding alcohol consumption between Europe and other regions, and adapted their menu by offering beer in Germany. This strategy of adapting the menu to local preferences while maintaining the brand's identity is an example of glocalization. The other options are not relevant to this scenario.

Question 15

In 2010 Vietnam replaced China as the country where Nike produces the bulk of its products. This was largely driven by rising wage rates in China and illustrates what is generally referred to as:
A) The globalization of markets
B) Outsourcing
C) Free trade
D) The globalization of production
E) 'Glocalization'

Accepted Answer

Nike shifting its production from China to Vietnam due to rising wage rates in China exemplifies the globalization of production, which refers to how different stages of production occur in different countries to take advantage of lower costs or specific skills. The other options do not fully capture this phenomenon.

Quiz 1: Global Marketing Explained

In pursuing a global marketing strategy a firm may:

What is meant by the term 'globalization'? Describe one approach to the quantification of this concept.

To be considered 'global' firms must have operations in every country in the world.

How does technological innovation drive globalization?

Distinguish between a multi-domestic and a global marketing strategy.

One of the biggest problems with implementing a global marketing strategy is:

Which of the following (if any) is a driver of globalization?

Dreher (2006) measures globalization on three dimensions: economic, social and political. The political integration dimension would capture:

When a company localizes its important decisions at head office and is largely driven by the needs of consumers in its home market it is described as pursuing a (n) __________________ strategy.

Define the term 'Glocal' Marketing. Provide one real world example of a company that follows such a strategy.

Dreher (2006) measures globalization on three dimensions: economic, social and political. The economic integration dimension would capture:

How does global marketing differ from domestic marketing?

Dreher (2006) measures globalization on three dimensions: economic, social and political. The social integration dimension would capture:

McDonald's recognizes that, compared to other societies, Europeans have a more liberal attitude towards alcohol consumption. In Germany this family oriented restaurant chain has included beer on its menu. This approach to marketing is referred to as:

In 2010 Vietnam replaced China as the country where Nike produces the bulk of its products. This was largely driven by rising wage rates in China and illustrates what is generally referred to as: