Competing in Global Markets Flashcards

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What does “competing in global markets” mean?

A business sells and tries to win customers in many countries, not just at home.

What is a competitive advantage?

A feature that makes a firm better than rivals, such as lower costs, higher quality, or faster delivery.

What is a USP and why is it useful when selling abroad?

A unique selling point is what makes a product different. It helps the product stand out in new countries.

How can economies of scale help a firm compete globally?

Making more units lowers the average cost per unit. The firm can then cut prices or earn more profit.

What is meant by standardisation in global marketing?

Using the same product and adverts in all countries to save money and keep the brand the same.

Why might a business adapt its product for another country?

To match local tastes, laws, income levels, climate, or culture.

Which two parts of the marketing mix are often changed for foreign markets?

Product features and promotion messages.

How can exchange rates affect UK exporters?

A weaker pound makes UK goods cheaper overseas. A stronger pound makes them dearer.

How can e-commerce help a business compete globally?

An online shop can reach buyers worldwide at low cost, all day, every day.

Why is strong branding helpful in global markets?

A known brand builds trust across countries. It can support higher prices and repeat sales.

Why should a firm research culture before promoting abroad?

To avoid words or images that offend. It helps choose colours, names, and messages that fit.

What is a common pricing strategy for entering a new country?

Penetration pricing: set a low price at first to win customers fast.