Globalization and its Impact on Businesses and International Trade

The video explores globalization, its impact on businesses, and international trade. It discusses how companies like Pepsi, Subway, and eBay operate globally, highlighting the role of reduced trade barriers and technological advancements. The video explains exports and imports, trade patterns, and the opportunities and challenges globalization presents. It also covers trade barriers, trade blocs, and the need to adapt the marketing mix for different markets.

What is a key characteristic of globalization that allows companies like Pepsi to thrive?

• Operating in a single domestic market

• Avoiding international trade

• Reaching customers on a global scale

• Focusing solely on high-margin products

Which factor has contributed to the ease of global trade?

• Decreased mobility of resources

• Technological advancements

• Rising transportation costs

• Increased tariffs

What is the primary purpose of exports for businesses?

• To limit international reach

• To reduce market share

• To increase domestic competition

• To expand their target market

Why do countries specialize in producing certain goods?

• To compete with domestic firms

• To avoid international trade

• To produce at a lower cost than others

• To increase production costs

How do tariffs protect domestic industries?

• By making imports more expensive

• By eliminating domestic competition

• By encouraging foreign imports

• By lowering the price of imports

What is a trade bloc?

• A group of countries trading freely

• A single country trading alone

• An agreement to increase tariffs

• A restriction on international trade

What is a benefit of opening production facilities in foreign countries?

• Higher labor costs

• Increased production expenses

• Lower cost conditions

• Limited market access

What is a challenge businesses face when operating internationally?

• Ignoring local tastes and preferences

• Adapting to local market conditions

• Standardizing products globally

• Maintaining a single pricing strategy

Why is it important to adapt promotional strategies in different countries?

• To avoid using local languages

• To reduce advertising costs

• To address language and cultural differences

• To maintain a uniform global message

How has e-commerce impacted international business operations?

• By reducing the importance of local adaptation

• By eliminating the need for online presence

• By increasing logistical challenges

• By simplifying global distribution