Suggested Answers to Discussion Questions
1. Do you believe that economic democracy (free markets) will inevitably lead to
political democracy? Why? Why not?
As the poor countries grow richer, they assume that their values are responsible for
their success, and they do not listen to lectures from their less successful former
2. Why did free markets and marketing win in the competition with communism?
The age old “contest” between capitalism and communism is over. The clear success
of the capitalist market-driven system over the communist centrally controlled model
has led to the collapse of communism as a model for the organization of economic
activity and as an ideologue. Markets are in control of the allocation of resources all
3. Is the trade cycle relevant to companies today? Why? Why not?
The old trade-cycle model, which implied to a generation of managers that as a
product matures, the location of production must shift to low-wage countries, has
been clarified. Just the level of wages does not dictate the location of production.
4. How have technological convergence, the Internet, and customer expectations
changed the task of the global marketer? Are marketing tools and concepts
discussed throughout this text relevant to the digital marketplace? If so, how? If
not, why not?
“The new electronic interdependence re-creates the world in the image of a global
village.” This observation, from the quotation at the beginning of this chapter,
describes today’s hyperconnected world. The most important change today in
marketing is the interaction of globalization and information technology. Workers and
5. The acceleration of population growth and aging of the world population will
have an impact on marketing practices. How will these trends impact product and
pricing decisions, integrated marketing communications, or other areas?
Current projections show a continued increase of population (but a steady decline in
the population growth rate) with the population expected to reach between 7.5 and
10.5 billion in the year 2050. The population within the developed economies of the
world is continuing to gray. Certainly, it will impact medical markets. Older
6. Are sustainability initiatives applicable to marketing? If so, how? If not, why not?
What would the practice of marketing look like from a perspective where shared
value is a top priority?
Yes, sustainability initiatives are most applicable to marketing. Sustainability is a
response to the new era of man and is closely linked to shared value, the value
7. Discuss with your classroom peers where they have been residing and working.
What have been their experiences with living, working, or studying in a country
where they had to learn the language, the culture, and applicable industry
standards? What did they find rewarding about these experiences? How have
these experiences shaped their understanding of global marketing and global
marketing practices?
8. Hermawan Kartajaya has outlined the Twelve Cs of New Wave Marketing in the
appendix to this chapter. In your view, which are the most important Cs on his
list? Why are the Cs you selected especially important?