Khaburina Alena, marketing-1.
Ethnocentrism is situation when home country sees itself like a superior. When penetrating different markets it tries not to adapt to different cultures and behavior peculiarities but tries to find something similar. Such attitude can cause very bad consequences. For instance as we could see from Disney case, the management of Disney became very arrogant and tried to manage like it managed in USA.
Also this style of management can lead to marketing myopia when company focuses on itself and the majority of its time and resources are wasted on development and it’s good point. BUT also the company has problems with forecasting and it can miss some very important information about the market, about the competitors that can be crucial for all the company.
Also ethnocentrism can be bad by another reason. Some management styles could be inappropriate for another company. For example finance management. Finance management in USA can be very different from finance management in France like we could see in Disney case.
So the company which wants to penetrate some new market should be polycentric in order to satisfy needs of new markets and new target audiences.
42. Why increasing oil prices can be bad for Russia in long-term.
This term is very interesting point for Russia. In long-term constant increasing of oil prices can be bad. In long-term the number of people and number of machinery using oil will increase so it will be very hard to satisfy the growing demand on oil. Also increasing prices influence negatively on world demand. In extreme cases the increasing prices can cause the world recession.
We could see such examples, in 1970-s, when the prices for oil caused the economic crisis.
The oil prices should be stabled in long-term in order to provide world economy stability.
The source used: [http://foreck.info/analytical-articles/9591-rising-commodity-prices-threaten-the-recovery-process-of-the-world-economy.html]
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