Coca-cola routinely establishes local companies In different countries around the world to oversee the product and striation of Its products. 3. Why do Korean companies favor ethnocentric and U. S companies prefer a geocentric orientation? Discuss the functions of International law and legal Issues that can affect global businesses. Answer: Korean companies favor ethnocentric because they assume that the product they produce is superior than the other country and they only see the similarities in the market.
While U. S prefer a geocentric, they have the worldview of the product and see the similarities as well as the differences in global market. Each country has laws and rules applying o its citizens in their international dealings, and to citizens of other nations . For example, law affecting investment in a country by foreign persons and companies, laws regulating the immigration of workers and laws also limited the amount of exports and Imports within every countries. . Identify and briefly describe some of the forces that have resulted in increased global Integration and the growing Importance of global marketing. Answer: Driving and Restraining forces. The driving forces Include regional economic agreements such as NONFAT and EX., converging arrest needs and wants, technology advances which to recoup the production cost, enhance the quality of product via R&D as well as the world economic trends for example, prevarication.
Besides, the chances to use leverage, corporate culture also create the trade barrier which to protect the benefits of the certain country. 5. Define leverage and explain the different types of leverage utilized by companies with global operations. Answer: Leverage is a general term for any technique to multiply the gains and loses . A global company can take benefits of several types of average In pursuit of corporate goals such as revenue and profits growth. For instance, there are experience transfers, scale economies, enhanced resources utilization and global strategy. . What in your view is the future of a company such as Monika? Will it able to continue company will be such as Monika in the future. It won’t be able as an independent company because the competition in this field is very strong. The producer should come out with the new initiatives always and ensure the product is fulfilling the customer needs. If not, the consequences of the company will same as the Monika. . Discuss marketing strategies to explore opportunities in a changing global environment.
Answer: Global branding can make opportunities around the world market. A brands product is responsible for all the product and marketing functions and long-term development of the product that are branded to get the loyalty of customer. This brand strategy is to influence people’s perception of a brand in such a way they are persuaded to act in a certain manner. It is an activity that undertaken in a competitive environment, the aim is also persuade people to prefer the brand to competition.