Globalization Overview

Growth opportunities and cost savings.

Advantage: Low initial costs; Disadvantage: High transportation costs.

It allows for rapid market entry with minimal investment and risk.

<p>A joint venture involves forming a new legal entity, while a strategic alliance is a flexible partnership without creating one.</p> Signup and view all the answers

<p>High setup costs and franchise fees.</p> Signup and view all the answers

<p>Risk of intellectual property misuse.</p> Signup and view all the answers

<p>Full control over operations and brand.</p> Signup and view all the answers

<p>To share risks and access local market knowledge.</p> Signup and view all the answers

<p>Globalization is the interaction and integration among people, companies, and governments worldwide, leading to economic interdependence among national economies.</p> Signup and view all the answers

<p>Multinational Corporations (MNCs) with global reach and technological advancements that facilitate faster travel and shipping.</p> Signup and view all the answers

<p>Global consumers drive the integration of markets by creating similar demands for products and services worldwide.</p> Signup and view all the answers

<p>Advantages include job creation, reduced costs, increased competitiveness, and technological innovation.</p> Signup and view all the answers

<p>Globalization can increase social inequality and lead to job losses in developed countries due to outsourcing.</p> Signup and view all the answers

<p>Technology, such as microprocessors and the internet, accelerates globalization by enhancing communication and transportation capabilities.</p> Signup and view all the answers

<p>Internationalization involves conducting business in multiple countries within a specific region, focusing on limited regional expansion unlike globalization, which is broader.</p> Signup and view all the answers

<p>The Uppsala Model suggests that companies expand incrementally into foreign markets, gradually increasing their commitment.</p> Signup and view all the answers

<p>Sporadic exports, export via independent representatives, establishing foreign sales subsidiaries, and setting up foreign manufacturing units.</p> Signup and view all the answers

<p>Local adaptation involves modifying products, services, and marketing strategies to align with local cultures and consumer preferences.</p> Signup and view all the answers

<p>Coca-Cola created a guarana-flavored drink specifically for the Brazilian market.</p> Signup and view all the answers

<p>A glocal strategy combines global standardization of products with local differentiation to suit specific markets.</p> Signup and view all the answers

<p>Multidomestic strategy focuses on high local responsiveness and low global integration, while transnational strategy emphasizes both high integration and responsiveness.</p> Signup and view all the answers

<p>Avast adapted language, currency, and payment methods, which led to tripling conversion rates from 1% to 3%.</p> Signup and view all the answers

<p>A glocal strategy builds strong relationships with local customers while enhancing profitability and brand relevance.</p> Signup and view all the answers

<p>Establishing manufacturing branches indicates a deeper commitment to local markets and can enhance efficiency and responsiveness.</p> Signup and view all the answers

<p>Exporting is the simplest and lowest risk market approach, allowing companies to enter new markets without high investment.</p> Signup and view all the answers

<p>Joint ventures involve collaboration between companies, sharing resources and risks, but can lead to conflicts due to differing objectives.</p> Signup and view all the answers

<p>Edward Tylor defines culture as a complex system that includes knowledge, belief, art, morals, law, and custom.</p> Signup and view all the answers

<p>Western cultures emphasize individualism, while Eastern cultures focus on collectivism and community orientation.</p> Signup and view all the answers

<p>Religion provides shared beliefs and rituals that influence ethical systems and moral principles within a culture.</p> Signup and view all the answers

<p>Language, both spoken and unspoken, reflects cultural values and norms, and multilingual environments may reveal diverse cultural perspectives.</p> Signup and view all the answers

<p>Education instills societal values and norms, teaching individuals about obedience, respect, and punctuality.</p> Signup and view all the answers

<p>Political systems shape individual freedoms and rights, while economic systems determine the level of state control over markets, impacting cultural practices.</p> Signup and view all the answers

<p>Low power distance emphasizes equality and decentralized authority, whereas high power distance acknowledges hierarchies and centralized authority.</p> Signup and view all the answers

<p>Individualism focuses on personal independence and self-gratification, while collectivism emphasizes group harmony and shared resources.</p> Signup and view all the answers

<p>High uncertainty avoidance leads to a preference for structured environments, detailed planning, and risk aversion among employees.</p> Signup and view all the answers

<p>Masculinity emphasizes achievement and traditional gender roles, while femininity values harmony, quality of life, and overlapping gender roles.</p> Signup and view all the answers

<p>Long-term orientation focuses on future goals and persistence, while short-term orientation emphasizes tradition and immediate results.</p> Signup and view all the answers

<p>Indulgence allows for free gratification of desires and promotes leisure, while restraint emphasizes discipline and strict norms.</p> Signup and view all the answers

<p>Cultural differences influence greetings, communication styles, and negotiation approaches in the workplace.</p> Signup and view all the answers

<p>Cross-cultural communication enhances global workforce management, effective negotiations, and customer satisfaction in international markets.</p> Signup and view all the answers