Unit 11 globalization

Unit 11 Unit 11 globalization Getting ready Answer the following questions What does ‘globalization’ mean? What are the advantages and disadvantages of globalization? a reading comprehension Scan the.

U n i t 1 1

g l o b a l i z a t i o n

Getting ready

Answer the following questions:

1 What does ‘globalization’ mean?

2 What are the advantages and

disadvantages of globalization?

a reading comprehension

I. Scan the text and answer the following questions:

1. Which western multinational companies does it mention?

2 What do these numbers refer to?

600

$ 995 bn

£ 2.7 bn

50 miles

365 m

235

80 m

200

It refers to the number of women who the L’Oreal researchers have watched taking a shower

It refers to the GDP of China.

It refers to the value of the Chinese cosmetics market.

It refers to the distance from Shanghai to the new economic development zone.

It refers to the urban population of China.

It refers to the number of McDonald’s outlets in 41 Chinese cities.

It refers to the number of purchasers of L’Oreal products in China.

It refers to the number of products that L’Oreal tested.

1. What does L’Oreal’s ‘bathroom’ research

hope to achieve?

-> It hopes to discover how Chinese consumers use the make-up, hair- and skin-care products which the organization is introducing

ii Answer the questions.

2 Why do you think Paolo Gasparini talks about Chinese pharmacies?

-> The company may be interested in using

Chinese pharmacies in their products sold in China

3 Why is China such an attractive market for foreign businesses?

-> The government’s more open economic

outlook, a growing urban population with

disposable income, and a taste for modern, western goods make China an attractive market for foreign businesses

4 What has China done to encourage foreign businesses to set up near Shanghai?

-> It has opened a new economic development zone 50 miles outside Shanghai

5 Why didn’t L’Oreal enter the Chinese market earlier?

-> Before until the early 1990s it considered average incomes too low and the distribution channels too poor to merit a launch

6 How did L’Oreal plan its entry into the Chinese market?

-> It tested about 200 products, launched a joint venture with a medical college, and started an extensive R&D programme

7 How useful has L’Oreal joint venture with the Suzhou medical college been?

-> It’s useful because it helped L’Oreal reformulate their products for the Chinese market

8 Maybelline, L’Oreal Paris, and Lancome are all brands of L’Oreal, but they are sold in

China through different sales outlets Why do you think this happens?

-> They are aimed at different groups of

consumers, who will make their purchases from different sales outlets

9 According to Paolo Gasparini, what is the difficulty and importance of recruiting good local staff?

-> It’s difficult to train and keep clever young

people because China is not familiar with

marketing The company which has the best people

is the company winning the battle