Week2 - Global Marketing Quiz

What is the main reason companies go global?

• Direct competition in the global market

• Cost reduction in the local market

• Local cluster expansion

• Revenue maximisation via new market

What is the purpose of efficiency-seeking in global expansion?

• To increase production costs

• To lower costs and improve operational efficiency

• To expand into local markets

• To acquire strategic assets

What is the main benefit of resource-seeking in global expansion?

• Access to strategic assets

• Access to diverse resources

• Access to local markets

• Access to global competition

Why do companies go abroad to obtain strategic assets?

• To establish a global brand presence

• To acquire intellectual property and brand

• To access manufacturing facilities and capacity

• To respond to demand

What is the first step in taking your business global?

• Market selection and research

• Develop a global strategy

• Choose a market entry mode

• Assess internal readiness

What does a local cluster primarily cater to?

• Local or regional market needs

• Global market demands

• International market needs

• National market demands

What is the characteristic of a traded cluster?

• Primarily for export or trade outside the local or regional area

• Primarily for local or regional market needs

• Not exposed to competition from outside of their direct geography

• Price according to the local or regional market

What is the definition of direct competition?

• Occurs when products or services are seen as alternatives to each other

• Occurs when products or services are not identical but fulfill related needs

• Occurs when two or more businesses offer similar products or services that fulfill the same customer needs

• Occurs when products or services serve a similar purpose and can fulfill different need

What is the purpose of using SWOT tools in investigating competition?

• To evaluate position relative to competitors

• To diversify into new markets

• To develop a USP

• To keep upgrading products

Below are the main tips for staying globally competitive EXCEPT?

• Diversify by expanding into new markets

• Pricing products and services lower than competitor

• Use market intelligence to investigate competition

• Develop a USP to use as a marketing and sales tool