Globalization and Market Strategies

Questions and Answers

What is the main effect of globalization on national markets according to the content?

It restricts international competition.

It creates differentiation in brand names.

It leads to greater uniformity across markets. (correct)

It increases diversity among products.

What does the globalization of production focus on?

Sourcing goods and services from local suppliers exclusively.

Producing all components in the home country.

Eliminating outsourcing in favor of domestic production.

Utilizing national factors of production to enhance cost and quality. (correct)

How much of the Boeing 777 is built by foreign companies?

50 percent

30 percent (correct)

65 percent

40 percent

What rationale does Boeing have for outsourcing a large portion of its production?

To work with suppliers who excel in specific manufacturing processes. Signup and view all the answers

What percentage of the Boeing 787 is outsourced to foreign companies?

65 percent Signup and view all the answers

Which company is mentioned as a competitor to Boeing in the aircraft manufacturing industry?

Airbus Signup and view all the answers

What approach helps companies like Boeing to compete more effectively in the global market?

Enhancing product quality and functionality through global sourcing. Signup and view all the answers

Why do some companies engage in outsourcing production to foreign countries?

To increase the likelihood of winning orders from local airlines. Signup and view all the answers

What does collectivism prioritize over individual goals?

Collective goals Signup and view all the answers

Which ancient philosopher is known for advocating the idea of collectivism?

Plato Signup and view all the answers

How does collectivism affect individual freedoms?

It may restrict individual freedoms Signup and view all the answers

Which of the following countries is mentioned as an example of a collectivist society?

Japan Signup and view all the answers

What did Plato believe regarding the structure of society?

It should be stratified into classes Signup and view all the answers

What is a characteristic of collectivist societies in relation to individual opinions?

Harmony of the group is placed above individual opinions Signup and view all the answers

What has been noted about how Japan deals with historical conflicts?

They frequently apologize for past actions Signup and view all the answers

Which political ideology has adopted the mantle of collectivism in modern times?

Socialism Signup and view all the answers

What must managers in international business do in response to government interventions?

Develop strategies to accommodate the government restrictions. Signup and view all the answers

How do political systems relate to economic and legal systems in a country?

Political systems define the economic and legal frameworks. Signup and view all the answers

What are the two dimensions used to assess political systems?

Collectivism vs. individualism and democracy vs. autocracy. Signup and view all the answers

What is the significant relationship between collectivism and totalitarianism?

Collectivism is typically associated with totalitarian regimes. Signup and view all the answers

What is a common challenge managers face in international business?

Dealing with government regulations on international trade and investment. Signup and view all the answers

What might be a consequence of government interventions in trade?

Creation of strategies that comply with governmental limits. Signup and view all the answers

What aspect of political systems can significantly impact international business?

The nature of the political system governing trade. Signup and view all the answers

Which characteristic is typical of systems that emphasize individualism?

They tend to have democratic governance structures. Signup and view all the answers

Who founded Buddhism, and in which century did it originate?

Siddhartha Gautama in the sixth century BC Signup and view all the answers

What does the term 'nirvana' signify in Buddhism?

A state of spiritual enlightenment Signup and view all the answers

Which path did Siddhartha Gautama offer as a route for transformation?

The Noble Eightfold Path Signup and view all the answers

What principle distinguishes Buddhism from Hinduism regarding social structure?

Buddhism rejects the caste system Signup and view all the answers

What is the primary focus of Confucianism?

Personal salvation through right action Signup and view all the answers

What aspect has the most significant impact of Confucianism in society?

High moral and ethical conduct Signup and view all the answers

What does Buddhism believe is the origin of suffering?

People's desires for pleasure Signup and view all the answers

In which countries is Confucianism mainly practiced?

China, Korea, and Japan Signup and view all the answers

What mistake did General Motors make with the name 'Nova' in the Spanish-speaking market?

It translates to 'star' but sounds like 'it doesn't go'. Signup and view all the answers

How does unspoken language differ across cultures?

Some gestures can be perceived as friendly in one culture but offensive in another. Signup and view all the answers

What does the gesture of making a circle with the thumb and forefinger signify in the United States?

A friendly gesture. Signup and view all the answers

Which of the following statements is true regarding IKEA’s naming issue?

The name resembled a vulgar term in another language, causing branding issues. Signup and view all the answers

What indicates a major determinant of a country’s economic success from an international business perspective?

The availability of a skilled workforce. Signup and view all the answers

What does the thumbs-up gesture signify in most American and European cultures?

It’s all right. Signup and view all the answers

Which branding failure occurred for the Ford Pinto in Brazil?

The name 'Pinto' is a slang term for tiny male genitals. Signup and view all the answers

What does Pepsi's slogan 'come alive with the Pepsi Generation' imply in China?

A literal invitation to revive ancestors. Signup and view all the answers

Study Notes

Globalization and Market Homogeneity

Firms globalize by adopting successful products, operating strategies, marketing approaches, and brand names, leading to market homogeneity.
Distinctions between markets like “the German market” or “the American market” blur into a singular global marketplace.

Globalization of Production

Globalization of production allows sourcing goods and services from various countries to leverage cost and quality differences in labor, energy, land, and capital.
Companies aim to reduce costs or enhance product quality, improving competitive positions.
Boeing exemplifies globalization of production, with substantial portions of the 777 and 787 jet airliners’ components outsourced globally.

Outsourcing in Aerospace

Boeing outsources 30% of the 777's value to foreign suppliers; the 787's outsourcing rises to 65%.
Major outsourcing to Japan involves partnerships with top-quality suppliers, enhancing product quality and competitive edge over rivals like Airbus.
Local outsourcing can also influence bidding success for contracts from airlines in those countries.

Political Systems and Economic Systems

Political systems determine economic and legal environments; they vary between collectivism and individualism, and democracy and totalitarianism.
Systems emphasizing collectivism often skew towards totalitarian governance, while individualist cultures lean democratic.

Collectivism

Collectivism prioritizes collective goals over individual rights, leading to restrictions on personal freedoms for societal benefit.
Plato advocated for collectivist ideals, envisioning a stratified society for governance, influencing modern socialist thought.
Japanese and Taiwanese societies exhibit collectivist characteristics, emphasizing group harmony and long-term relationships.

Buddhism

Founded by Siddhartha Gautama in the 6th century BC, Buddhism teaches spiritual enlightenment through the Noble Eightfold Path, focusing on right mindfulness and action.
It has around 535 million adherents and is prevalent in Central and Southeast Asia, China, Korea, and Japan.
Buddhism does not enforce a caste system and focuses on the afterlife and spiritual goals.

Confucianism

Established in the 5th century BC by Confucius, it was China's ethical backbone until 1949.
Confucianism promotes ethical conduct, personal salvation, and the importance of relationships and loyalty.
While not a religion, its principles are deeply rooted in various East Asian cultures.

Language and Cultural Sensitivity

Awareness of language nuances and cultural contexts is critical in international business; a name's meaning or a slogan can misfire across cultures.
Unspoken language (nonverbal communication) varies globally; gestures can have radically different meanings.
Examples include different interpretations of hand gestures such as the thumbs-up or a circle made by fingers.

Education and Competitive Advantage

Access to an educated workforce directly impacts national competitive advantages.
The pool of skilled labor is a key factor in a country's economic potential.

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Description

Explore the concepts of globalization, market homogeneity, and production outsourcing in this quiz. Learn how companies like Boeing utilize global supply chains to enhance quality and reduce costs. Test your understanding of the impact of these strategies on the aerospace industry and beyond.