Impact of Globalisation on Global Companies | Edexcel A-Level Economics B (9EB0)
Impact of Globalisation on Global Companies
- 80 questions
- 6 subtopics
- Theme 3: the global economy
- Paper 2 and Paper 3
Impact of Globalisation on Global Companies is examined in Paper 2, Competing in the global economy, and in Paper 3, The economic environment and business.
It covers globalisation and glocalisation, ethnocentric, polycentric and geocentric approaches to global markets, price and non-price competition in global markets, branding and differentiation in global markets, cultural and language barriers in global markets and adapting marketing strategy for niche and mass markets.
Sample questions from Impact of Globalisation on Global Companies
Answer each one closed book first, then open the answer.
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Globalisation and glocalisation
Give two reasons a standardised global product can fail in a particular market.
Show the answer
Local tastes, diets or climate may make it unsuitable, and local rules on ingredients, safety or labelling may prohibit it as designed. -
Globalisation and glocalisation
Which parts of the marketing mix are usually kept the same worldwide and which are usually adapted?
Show the answer
The brand name, logo and core product concept are usually kept the same, while price, promotion, distribution and product detail are usually adapted to local conditions. -
Ethnocentric, polycentric and geocentric approaches to global markets
Give two disadvantages of an ethnocentric approach.
Show the answer
The product may not suit local tastes or regulations, and local managers have little authority, so the firm responds slowly to what customers there actually want. -
Ethnocentric, polycentric and geocentric approaches to global markets
Which approach best suits a firm selling food products to households in many countries?
Show the answer
A polycentric approach, because diets, tastes and shopping habits differ strongly between countries and the product has to match them. -
Price and non-price competition in global markets
Why might a firm charge different prices for the same product in different countries?
Show the answer
Incomes, price elasticity of demand, competition, taxes and distribution costs differ between markets, so the profit-maximising price differs too. -
Price and non-price competition in global markets
How does adapting the promotion element of the marketing mix improve competitiveness abroad?
Show the answer
Advertising in the local language and using local media, personalities and cultural references makes the message credible and understood, which raises its effect on demand for a given spend. -
Branding and differentiation in global markets
Why is branding especially valuable where consumers cannot judge quality before buying?
Show the answer
The brand acts as a guarantee of consistent quality and reduces the risk the buyer takes, which is why global brands do well in markets where product standards vary. -
Branding and differentiation in global markets
What economies of scale does a global brand achieve in marketing?
Show the answer
A single brand identity, sponsorship or campaign can be used across many countries, so the cost of creating it is spread over far more sales than a national brand could manage.
The 6 subtopics
One subtopic is one session. Work down the list.
| Subtopic | What it covers | Questions |
|---|---|---|
| Globalisation and glocalisation | Globalisation and glocalisation, think global, act local, the cost advantages and failures of standardised products, glocalisation by fast food chains and streaming services and its extra cost, the trade-off between standardisation and adaptation, which parts of the marketing mix are adapted, converging national markets, and global brands. | 13 |
| Ethnocentric, polycentric and geocentric approaches to global markets | Ethnocentric, polycentric and geocentric approaches to global markets, the advantages and disadvantages of each, costs of polycentrism, managing a geocentric firm and its use of talent, which approach suits industrial components and which suits food products, how approaches change with experience, subsidiary independence, and scale with local adaptation. | 14 |
| Price and non-price competition in global markets | Price against non-price competition in global markets, offshoring and price competitiveness, penetration pricing abroad, international price discrimination and the conditions for it, grey markets, exchange rates and competitiveness, smaller pack sizes for low-income markets, forms of non-price competition, adapting promotion and place, differentiated demand, and the risk of competing on price alone. | 14 |
| Branding and differentiation in global markets | Product differentiation and brand equity, global brands and price elasticity, the benefits of a strong brand in an unfamiliar market, branding where quality is hard to judge, the risks of a single global brand, keeping local brand names, positioning one brand differently, marketing economies of scale, unique selling points, counterfeiting, and falling trade barriers. | 12 |
| Cultural and language barriers in global markets | Cultural factors that affect sales abroad, food and drink firms, religious dietary rules, colour symbolism, household size, attitudes to credit, cultural distance, the problems language differences cause, literal translation and transcreation, local marketing staff, translation errors on packaging, literacy rates, and business culture. | 14 |
| Adapting marketing strategy for niche and mass markets | Niche against mass markets abroad, the advantages and disadvantages of a niche strategy in a foreign market, home mass-market products becoming niche products abroad, adapting pricing and distribution for low-income mass markets, one brand across segments, market research, digital advertising, entering as a niche player, cultural responses, segmentation, and low unit costs. | 13 |
How the guide is worked
Answering a question from memory stores it far better than reading the answer again. The guide runs that as a fixed procedure on one subtopic at a time, about twenty minutes a session.
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Step 1 · Closed book
Cover the answers. Work through one subtopic and write down what you can. Leave blanks where you have nothing.
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Step 2 · Open book
Go back to the top. Read each printed answer and write it out in full, including the ones you had right.
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Step 3 · Closed book again
Same questions, same order, from memory. The gap between pass one and pass three is the session result.
Read the full method, the return schedule and the research behind it.
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