Question

An American multinational corporation known for its big, premium-priced ultrasound scanners (designed for use in U.S. hospitals) introduces a cheaper and portable version in emerging markets. The portable scanner also creates new markets in the U.S., for example, in small hospitals and for immobile patients. What globalization force does this exemplify?

The diaspora
Reverse innovation
Hyperconnectivity
The demographic dichotomy

Answer 1

The globalization force exemplified in this scenario is reverse innovation. Reverse innovation occurs when a company creates a product or service in response to the needs and demands of emerging markets, and then brings that innovation back to the developed markets.

Step-by-step explanation:

The globalization force exemplified in this scenario is reverse innovation. Reverse innovation occurs when a company creates a product or service in response to the needs and demands of emerging markets, and then brings that innovation back to the developed markets. In this case, the American multinational corporation introduced a cheaper and portable ultrasound scanner in emerging markets, but it also found new markets in the U.S. for the portable scanner in small hospitals and for immobile patients.