MKT 3401 : Study Guide - Ch. 5 Answers
Document Summary
Traditional economic theory says that globalization relies on competition to drive down prices and increase product and service quality. Business goes to the countries that operate most efficiently and/or have the technology to produce what is needed. In summary, globalization expands economic freedom, spurs competition, and raises the productivity and living standards of people in countries that open themselves to the global market. For less developed countries, globalization also offers access to foreign capital, global export markets, and advanced technology while breaking the monopoly of inefficient and protected domestic producers. Faster growth, in turn, reduces poverty, encourages democratization, and promotes higher labor and environmental standards. Risk levels for 5 methods of entering the global marketplace: (from low risk/low return to high risk/high return) Exporting sell domestically produced products to buyers in other countries. Licensing and franchising legal process allowing use of. Contract manufacturing private-label manufacturing by a foreign country.
