GMS 522 STUDY GUIDE TEST PAPER
QUESTIONS AND SOLUTIONS GRADED
APLUS
●● Liability of foreignness
Answer: The inherent disadvantage that multinational firms experience
when operating in a new host country (PESTEL, cost, consumer
resistance).
●● Multi-domestic marketing strategy
Answer: Using separate marketing strategies for each target country with
no coordination from head office between country markets.
●● Global marketing
Answer: Marketing activities coordinated and integrated across multiple
country markets. Involves product standardization, identical brand
names, consistent packaging, and a similar advertising message.
●● Ted Levitt argued that...
Answer: Markets are becoming more homogeneous and therefore could
be targeted with standardized products. Gave rise to the notion of
"global marketing."
●● Glocal
, Answer: Attempting to balance standardization with adaptation to local
customer needs. Think global, act local.
E.g. McDonald's Maharaja Mac using pork patties.
●● Examples of events exhibiting globalization (4)
Answer: 1. Oil price shock of the 70s
2. Asian financial crisis
3. 9/11
4. Subprime mortgage crisis of 2007
●● Globalization of markets
Answer: The convergence of buyer preferences in markets around the
world.
●● Globalization of production
Answer: The dispersal of production activities to locations around the
world that are low cost or high quality producers.
●● Drivers of globalization (4)
Answer: 1. Market factors
2. Cost factors
3. Environmental factors
QUESTIONS AND SOLUTIONS GRADED
APLUS
●● Liability of foreignness
Answer: The inherent disadvantage that multinational firms experience
when operating in a new host country (PESTEL, cost, consumer
resistance).
●● Multi-domestic marketing strategy
Answer: Using separate marketing strategies for each target country with
no coordination from head office between country markets.
●● Global marketing
Answer: Marketing activities coordinated and integrated across multiple
country markets. Involves product standardization, identical brand
names, consistent packaging, and a similar advertising message.
●● Ted Levitt argued that...
Answer: Markets are becoming more homogeneous and therefore could
be targeted with standardized products. Gave rise to the notion of
"global marketing."
●● Glocal
, Answer: Attempting to balance standardization with adaptation to local
customer needs. Think global, act local.
E.g. McDonald's Maharaja Mac using pork patties.
●● Examples of events exhibiting globalization (4)
Answer: 1. Oil price shock of the 70s
2. Asian financial crisis
3. 9/11
4. Subprime mortgage crisis of 2007
●● Globalization of markets
Answer: The convergence of buyer preferences in markets around the
world.
●● Globalization of production
Answer: The dispersal of production activities to locations around the
world that are low cost or high quality producers.
●● Drivers of globalization (4)
Answer: 1. Market factors
2. Cost factors
3. Environmental factors
