Week 2

QUESTION 1: Why have some countries opposed globali ation! While most people or countries are expecting great things from globalization, there are nations in the world opposed with globalization. There are two main reasons. Firstly, when a developing country going to global trendy by joining WTO would have some obstacles in economy aspect. irtually, domestic company would lose competitive advanteges compare to huge foreign company due to these international firms have rich financial resources as well as advance technology. !radually, home country companies will lose core competence as well as mar"et share. For example, Walmart is considered a huge coporation in retail industry and its advantage are having supply chains as well as runing large discount department stores in the world. #t would be a threat for domestic companies in developing to "eep mar"et share with walmart. Therefore, some government opposed globalization to protect home country company $nother reason is that globalization is also leading to a homogenization of the world%s cultures. $s nations open up their borders to free trade, they also have to accept many foreign companies coming into their country and doing business there. The most noticeable companies are &c'onald%s, (F), *tarbuc"s, Wall+mart, and other foreign cultural icons. *ome people fear that in time there will lossing their culture. For example, young generation ietnamese favor in having fastfood with friend than spend time to cooc" and enjoy traditional food in recent years.

QUESTION ": What is the main di##erence bet$een ethnocentric % polycentric orientations! & company is called '(lobal') $hat type o# approach it #ollo$s *ethnocentric) polycentric or geocentric+! ,thnocentric orientation- firms focus on domestic mar"et and if it launch is business to other countries, it will be called international company. These companies are confident that their products and services are better than others, so they do not want to change

when they go others countries. Then these companies used standardized or extension approach. .olycentric orientation- each country in which a company does business is uni/ue, respect differences among countries and have suitable change to customization on products to adapt to consumers in other countries $ company is called %%!lobal%% when it will follow the geocentric orientation because geocentric orientation is a balance between ethnocentric and polycentric orientation QUESTION ,: Global marketers have to have the ability to "think globally & act locally". Explain this saying. To go and succeed in the global mar"ets, the firms must have an over view of mar"et trendy in the world and drive customer follow this trend but it should be suitable to every countries all over the world. 'emanding of customer are changing day by day so how we can ma"e the point where customer demand interact with company0s product. For example, *tarbuc" come to ietnam last year which is a leading comany in ta"e + away coffee shop in the world and the big factors of *tarbuc" do business in ietnam are price and material if *tarbuc" still maintain price and marteria, tastel li"e 1.*, they would get ostacle in ietnam. 2owever, they change size cup and focus on characteristic of product. 3esides, customer not only enjoy 1.* cultural coffee but also remain taste and flavour of coffee in home country.