BUS 200 Exam 1 Study Deck * in progress || 100% correct
solutions.
Globalization correct answers as processes by which products, people, companies, money and
information are able to move quickly around the world as decision makers desire, with few
cross-border impediments in their way.
push factors (home market) correct answers drives the company out of its home country or
other countries where it currently does business.
-unemployment, lack of safety, lack of services, more efficient production, access to
technology and skills
pull factors (target market) correct answers attract the company to a foreign location
-potential for employment, a safer environment, greater wealth, fertile land
Why business globalize: correct answers Seek new customers
Seek to get away from competition *go to markets where markets aren't existing or where the
market is weak
Seek cheaper cost production * cheap labor, energy, transportation (distribution cost)
Following global customers * remember: companies who make paint for automotive
companies, the paint company would build a factory next to the car factory.
Saturation of market, start new curved function correct answers market starts to decline and
sales go down and profitability goes down
Which markets should a company enter? correct answers -Market Size (# of customers you
can realistically target, demographic/ potential market)
Market Homogeneity correct answers if buyers have the same tastes, buy a product in the
same amounts, and react the same way to marketing efforts, undifferentiated marketing is
appropriate
(lots of potential customers)
Consumer preferences vs. Product offering correct answers Do they align?
heterogeneity (united states)* correct answers
Geography correct answers Can you get your products in/ and out?
Is it logical to transport?
, Political/Legal System correct answers Is it stable? is it business friendly?
PESTLE analysis correct answers Political,
Economic,
Social,
Technological,
Legal,
Environmental
Globalization Modes of Entry
EXAMPLES OF EACH correct answers Sequencing, as you go up, its more risky and more
commitment, but potential for great reward.
lowest risk exporting
Production under license
-franchising
-outsourcing
foreign direct investment (more risk)
-acquisition
-greenfield
Market Categorization correct answers
What is industrialization? correct answers poverty vs. wealth within single market
What are developed countries? correct answers focused on the service industry???
The US, Australia, Germany, Sweden
Least Developed Countries correct answers Least developed countries are primary producers
Afghanistan, chad, Bangladesh, Cambodia
What are developing countries? correct answers Increased levels of industrialization
a poor agricultural country that is seeking to become more advanced economically and
socially.
Poland, Albania, Turkey, Ukraine
Emerging Economies (BRIC countries) correct answers BRIC: Brazil, Russia, India, China
what least developed, developed, and developed countries are. Be able to least examples that
are not the BRICs.
Economic Indicators correct answers -national wealth
