Ch. 12- Quiz Flashcards
A U.S. retailer sent a shipment of ice fishing huts to Puerto Rico. This is an example of ________.
A. value-chain analysis
B. cultural differences
C. poor market research
D. market segmentation
E. a failure to determine basic demand
E. a failure to determine basic demand
One example of ___________ is the availability of labor and secure financing in a market abroad.
A. determining basic demand
B. determining availability of resources
C. assessment of economic and financial sources
D. assessment of cultural elements in business
E. assessment of government regulation
B. determining availability of resources
Governments can extend investment rules to bar international companies entirely from competing in certain sectors of the domestic economy. This is an example of ________________ that affect(s) international business.
A. political stability
B. economic and managerial forces
C. environment regulation
D. government bureaucracy
E. government regulation
E. government regulation
Consumer product giants Procter & Gamble and Unilever have manufacturing facilities in Vietnam. But Vietnamese consumers tend to shun these companies’ locally made Close-Up toothpaste and Tide detergent, instead seeking out identical products and brands produced in neighboring countries, such as Thailand. This an example of _____________ that affect(s) the ability of firms to engage in international business.
A. transport costs
B. government regulation
C. cultural forces
D. country image
E. political stability
D. country image
Which one of the following is used to forecast a product’s market demand?
A.Income elasticity
B. Market size
C. Market receptivity
D. Market growth rate
E. Market intensity
A.Income elasticity
Which one of the following markets, that have a large consumer base and rapid growth rate, are targeted by every large company engaged in international business?
A. Industrialized countries
B. Underdeveloped markets
C. Emerging markets
D. Developed markets
E. Developing markets
C. Emerging markets
Companies considering entering emerging markets often face special problems. Which one of the following problems is considered a major challenge when trying to assess market potential?
A. Assessment of managerial expertise needed
B. Assessment of purchasing power parity
C. Measuring privatization progress
D. Undeveloped methods for collecting data
E. Shortage of capital
D. Undeveloped methods for collecting data
There are ways companies can assess potential in emerging markets. Which one of the following is a key variable included in market potential analysis?
A. Gross domestic product
B. literacy rates
C. per capita income
D. market creative advertisement
E. market consumption capacity
E. market consumption capacity
Which one of the following variables estimates the wealth or buying power of a market from the expenditures of both individuals and businesses?
A. Market consumption capacity
B. Economic freedom
C. Commercial infrastructure
D. Market intensity
E. Market receptivity
D. Market intensity
Which one of the following is an indicator of market receptivity?
A. Estimate of the total risk of doing business, including political, economic, and financial risks
B. Estimate of commercial infrastructure
C. Estimate of the wealth or buying power of a market from the expenditures of both individuals and businesses
D. Estimate of the amount of per capita imports entering the market from the home country
E. Estimate of growth in gross domestic product (GDP) and energy consumption
D. Estimate of the amount of per capita imports entering the market from the home country
Which one of the following market potential analysis variables is estimated from a nation’s total population or the amount of energy it produces and consumes?
A. Country risk.
B. Market consumption capacity
C. Economic freedom
D. Market growth rate
E. Market size
E. Market size
What locally available resource is often at the top of a manager’s list for measuring site potential?
A. Human resources
B. Market size
C. Economic freedom
D. Market consumption capacity
E. Infrastructure
A. Human resources
Which one of the following types of research is used to obtain information that already exists within the company or can be obtained from outside sources?
A. Comparability of data
B. Primary market research
C. Secondary market research
D. Survey
E. Competitor analysis
C. Secondary market research
Which international organization publishes annual data on each member nation’s population and economic growth rate?
A. International Monetary Fund
B. U.S. Census Bureau
C. World Bank
D. Small Business Development Center
E. United Nations
C. World Bank
Which one of the following statements BEST explains secondary market research?
A. The process of collecting and analyzing original data and applying the results to current research needs
B. The process of obtaining information that already exist within the company or that can be obtained from outside sources
C. The research in which an interviewer asks current or potential buyers to answer written or verbal questions
D. Data obtained from other countries that are interpreted with great caution
E. Competitor analysis
B. The process of obtaining information that already exist within the company or that can be obtained from outside sources
Which one of the following is considered a source of secondary market research data?
A. Consumer surveys
B. Consumer Reports’ annual product analysis
C. Focus groups
D. A trade mission
E. International Trade Statistics Yearbook
E. International Trade Statistics Yearbook
Which one of the following is considered a secondary market research problem in many emerging and developing markets?
A. Translating host country currency figures into home country currency figures
B. Too few experts to analyze the data
C. Cost of obtaining data
D. Reliability
E. The influence of cultural and language variables on information while conducting research interviews
D. Reliability
Which one of the following organizations is considered the first stop for market information by many importers and exporters?
A. Trade Information Center
B. Small Business Administration
C. U.S. Treasury Department
D. Small Business Development Center
E. World Trade Organization
A. Trade Information Center
You are an international manager for a company that is considering export and a possible future site selection. You do not have enough knowledge of how to start to explore different international markets. Among the areas that you need to consider are import tariff and customs procedures, and which trade mission or trade shows you should participate in. You decided that you need to consult with a more knowledgeable source. Which one of the following options should you recommend that your company pursue?
A. Industry and trade association publications
B. Trade Information Center (TIC)
C. Interviews and focus groups
D. Trade shows
E. Surveys
B. Trade Information Center (TIC)
________ is the process of collecting and analyzing original data and applying the results to current research needs.
A. Competitor analysis
B. Primary market research
C. Determining basic demand
D. Assessment of the national business environment
E. Secondary market research
B. Primary market research
Which one of the following is a common method for primary market research?
A. The Trade Information Center
B. Trade shows
C. Service organization
D. Internet
E. Industry and trade associations
B. Trade shows
________ are exhibitions at which members of an industry or group of industries showcase their latest products, study activities of rivals, and examine recent trends and opportunities.
A. Interviews and focus groups
B. Networks
C. Trade missions
D. Trade shows
E. Surveys
D. Trade shows
You are a small company that is interested in exploring international business opportunities. You have a limited budget; however, you would like to meet with executive and key business people in more than one country. Which one of the following activities would be of most benefit to your company?
A. Organize an individual trip
B. Trade mission
C. Surveys
D. Interviews and focus groups
E. Trade show
B. Trade mission
Buyer information is required when deciding whether to enter a market and when developing an effective marketing plan. Which one of the following market research tools should you use?
A. Internet
B. TIC, U.S. Department of Commerce
C. Interviews and focus groups
D. International Trade Statistics Yearbook
E. Service organizations
C. Interviews and focus groups
The single greatest advantage of ___________ is the ability to collect vast amounts of data in a single sweep. (It can also be conducted by any technological means in industrialized markets.)
A. the CIA World Factbook
B. surveys
C. the internet and the World Wide Web
D. commercial offices of the states
E. service organizations in fields
B. surveys
