Untitled Flashcards Set

What are two factors that influence a company's decision to adopt internationalization strategies?

Companies may adopt internationalization strategies due to profit motives, seeking to increase revenue in new markets. Additionally, government policies, such as trade agreements and incentives, can also encourage companies to expand internationally.

How does international marketing differ from global marketing? Give an example of each.

International marketing involves making marketing decisions separately in each country, with local staff tailoring strategies to specific target markets, as seen with Unilever. In contrast, global marketing treats the world as a single market, creating products that can be adapted quickly to any region, such as in the pharmaceutical industry.

Define 'institutions' in the context of international business and provide examples.

Institutions are sets of common habits, rules, or laws that regulate interactions. A formal institution example is the WTO, while an informal institution might be unwritten cultural norms affecting business practices.

What is Foreign Direct Investment (FDI), and what is the difference between inward and outward FDI flows?

oreign Direct Investment (FDI) involves equity funds invested in other nations. Inward FDI refers to money coming into a country from foreign-owned multinational enterprises (MNEs) to their subsidiaries, while outward FDI is money going out from firms within a country to their subsidiaries in other countries.

What are the three regions that constitute the 'triad' in global transactions and why are they significant?

The triad consists of the United States, the European Union, and Japan, significant because a large portion of global transactions occurs within and between these regions.

How does Apple work backward to improve customer experience?

Apple works backward by exploring customer experience and then working with engineers to build technology and products that meet those customer experience needs. This approach ensures innovation is always customer-centric.

Explain how franchising can be beneficial for retailers and individuals.

For retailers, franchising allows expansion as an earning instead of an investment, limiting risk and expanding brand reach. For individuals, franchising provides ownership of a successful business, complete with training and resources, without needing prior expertise.

What are the components of a successful communication strategy for attracting customer attention?

A successful communication strategy includes clarity of words, clarity of message, and clarity of knowledge. The strategy emphasizes delivering intellect and purpose to customers, telling them why they need the products.

What are the key pillars of ESG principles and why are companies adopting them?

ESG principles consist of Environmental policies and sustainable actions, Social benefits to stakeholders and employees, and Governance in socially managed companies. Companies adopt ESG principles because they are associated with higher performance and lower risks.

What is the difference between a linear and circular economy?

A linear economy follows a "take-make-dispose" model, extracting raw materials, producing goods, and eventually accumulating waste. In contrast, a circular economy seeks to minimize waste by reusing and recycling materials, designing products for longevity and easy breakdown, and prioritizing service-based models over ownership.