Ch. 12- Quiz

Question 1

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

Answer 1

E. a failure to determine basic demand

Question 2

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

Answer 2

B. determining availability of resources

Question 3

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

Answer 3

E. government regulation

Question 4

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

Answer 4

D. country image

Question 5

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

Answer 5

A.Income elasticity

Question 6

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

Answer 6

C. Emerging markets

Question 7

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

Answer 7

D. Undeveloped methods for collecting data

Question 8

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

Answer 8

E. market consumption capacity

Question 9

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

Answer 9

D. Market intensity

Question 10

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

Answer 10

D. Estimate of the amount of per capita imports entering the market from the home country

Question 11

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

Answer 11

E. Market size

Question 12

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

Answer 12

A. Human resources

Question 13

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

Answer 13

C. Secondary market research

Question 14

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

Answer 14

C. World Bank

Question 15

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

Answer 15

B. The process of obtaining information that already exist within the company or that can be obtained from outside sources

Question 16

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

Answer 16

E. International Trade Statistics Yearbook

Question 17

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

Answer 17

D. Reliability

Question 18

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

Answer 18

A. Trade Information Center

Question 19

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

Answer 19

B. Trade Information Center​ (TIC)

Question 20

​________ 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

Answer 20

B. Primary market research

Question 21

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

Answer 21

B. Trade shows

Question 22

​________ 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

Answer 22

D. Trade shows

Question 23

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

Answer 23

B. Trade mission

Question 24

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

Answer 24

C. Interviews and focus groups

Question 25

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

Answer 25

B. surveys