Coca-Cola Markets Its Product Using the Same Strategy Worldwide, but Changes

question 105

Multiple Choice

Coca-Cola markets its product using the same strategy worldwide, but changes are made when implementing the marketing tactics to reflect the local culture, such as the ethnicity of the people in their ads and the music used in jingles. This is an example of _____.

• A) imperialism
• B) Guanxi
• C) glocalization
• D) cultural distance
• E) acculturation

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Definitions:

Forward Exchange Contract

A financial derivative that locks in the exchange rate at which a currency can be bought or sold on a future date.

Fair Value Hedge

A hedge of the exposure to changes in fair value of a recognized asset or liability or an unrecognized firm commitment, or an identified portion of such an asset, liability, or firm commitment, that is attributable to a particular risk and could affect profit or loss.

Local Currency Units

The monetary units issued by a country's central bank, used as the standard for financial transactions within that country.

Exchange Rates

The rate at which one currency can be exchanged for another, influencing how much of one currency you get for another.