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Flashcards in Test 1-chapter 1 Deck (12)
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0
Q

financial measures of global industries

A

Cross-border trade / total worldwide production
Cross-border investment / total capital investment
% of industry revenue generated by companies tat compete in all key world regions

1
Q

Globalization of markets

A

Historically distinct and separate markets are merging into one huge global marketplace:
Mostly not consumer product markets
mostly industrial products
tastes and preferences of consumers converging

2
Q

levels of international marketing involvement

A

Domestic Marketing- Low or no international commitment; domestic focus
Export Marketing- limited international commitment. Involves direct or indirect export; ethnocentric

International Marketing- Substantial international commitment. Focus on countries/regions; Polycentric or Regiocentric

Global Marketing- Extensive international commitment. Focus on market segments rather than countries regions; geocentric

3
Q

EPRG- World orientation- Ethnocentric

A

Assumption- National superiority
Competitive response- standardized products
company type- domestic or international

4
Q

EPRG World orientation- Polycentric

A

Assumption- all markets unique
Competitive response- local/adaption approach
Company type- multinational company

5
Q

eprg world orientation- Regiocentric

A

Assumption- region is relevant geographic unit
Competitive response- develop regional strategy
Company type- global or transnational

6
Q

eprg world orientation- geocentric

A

assumption- entire world is seen as market
competitive response- develop inegrated world strategy
company type- global or transnational

7
Q

Drivers of international expansion

A

Competition
regional economic and Politcal integration
technology
improvements in transportation in telecommunication
economic growth
Transition to market economy
Converging Consumer needs

8
Q

Firm specific Drivers

A
  • Product Live Cycle Considerations: opportunity to prolong product lifecycle by entering growth markets
  • High New Product Development Costs:firm must look beyond home country market to recover investment costs
  • Standardization, Scale Economies, Cheap Labor:Price competition during maturity drives firm to new international markets
  • Experience Transfers:experience in one country serves as basis for strategies in new international markets
9
Q

Obstacles to internationalization- Self Reference Criterion

A
  • Conscious and unconscious reference to own national culture while operating in the host country
  • To counter the impact of the elf-reference criterion, the corporation must select appropriate personnel for international assignments and engage in sensitivity training
10
Q

Obstacles to inter.- Government Barries

A

-Restrictions places on foreign corporations by imposing tariffs, import quotas, and other limitations, such as restrictive import license awards

11
Q

Obstacles to inter.- Barries imposed by international competition

A
  • Blocked channels of distribution
  • Exclusive retailer agreements
  • Price reductions at the time of market entry
  • Advertising Blitzes