Deck 12: Analyzing International Opportunities

Question 1

The first step in the screening of potential markets is an assessment of the national business environment.

Answer 1

False

Question 2

Regulations for the purpose of environmental protection generally increase short-term production costs.

Answer 2

True

Question 3

Assessing potential in emerging markets by ranking locations using market-potential indicators is useful only for companies involved in exporting.

Answer 3

True

Question 4

The potential to conduct written surveys is independent of the literacy rates among the local population.

Question 5

Food and utilities are examples of income-inelastic products.

Question 6

Products made in emerging countries tend to be evaluated more positively than those from relatively more developed countries.

Question 7

The process of obtaining information that already exists within the company is called secondary market research.

Question 8

A country's climate plays an important role in determining the basic demand for a company's product.

Question 9

Cultural elements can influence what kinds of products are sold and how they are sold in a country.

Question 10

While assessing the market potential of emerging markets,market consumption capacity is generally obtained through estimates of energy consumption.

Question 11

A product's income-elasticity refers to the sensitivity of the price of a product relative to changes in the income of consumer population.

Question 12

Secondary data tends to be very expensive because it has already been analyzed and summarized by another party.

Question 13

Governments bar international companies from entering economic sectors like energy exploration for security reasons.

Question 14

Consumer products such as toothpaste and soft drinks undergo extensive adaptation to suit local preferences.

Question 15

A product for which demand increases more relative to an increase in income has an income-elasticity coefficient less than 1.

Question 16

Companies usually create a single marketing plan to be used in all markets in which they sell their products.

Question 17

The first step in the identification of potential markets is an assessment of the basic demand for a product.

Question 18

Volatile currency values make it easier for firms to predict future earnings accurately in terms of the home-country currency.

Question 19

The process of collecting and analyzing original data and applying the results to current research needs is called primary market research.

Question 20

One of the main difficulties associated with conducting international market research is the measurability of data.

Question 21

Which of the following steps of the market screening process examines the effects of country image on market-entry decisions?

A)identification of basic appeal of a market
B)measurement of market or site potential
C)assessment of the national business environment
D)selection of the market or site

Question 22

The key element of political risk of greatest concern for global companies is ________.

A)the cost of transporting materials and goods
B)unforeseen political change
C)currency and liquidity problems
D)letting past political events blind future opportunities

Question 23

Which of the following government regulations or actions would indicate that a government is quite receptive to international trade and investment?

A)creating investment barriers to ensure domestic control of an industry
B)requiring companies to divulge proprietary secrets
C)allowing companies to remove profits earned in the domestic market
D)barring companies entirely from certain sectors of the domestic economy

Question 24

Which of the following is the final step in the screening process for potential markets and sites?

A)assessment of the national business environment
B)measurement of market or site potential
C)selection of the market or site
D)assessment of climate suitability

Question 25

Trade missions are advantageous to small businesses as they are the most inexpensive method of getting introduced to important business contacts.

Question 26

Which of the following is an example of a legal force that is used to assess the national business environment?

A)resource quality
B)environmental regulations
C)workforce qualifications
D)liquidity issues

Question 27

Focus group interviews tend to work best when moderators are natives of the countries where the interviews are held.

Question 28

Interviews and focus groups are two main sources of secondary data that help managers make informed decisions.

Question 29

Which of the following is least likely to be caused by poor fiscal and monetary policies of a nation's central bank?

A)high rates of inflation
B)increasing budget deficits
C)depreciating currency
D)increasing levels of innovation

Question 30

Locating production facilities within regional markets is popular because ________.

A)regional markets offer greater range of resources needed for production
B)it provides duty-free access to every consumer in a trade bloc
C)the marketing strategies applied at the regional market level will also be applicable at the global level
D)it simplifies political and economic activities

Question 31

The likelihood that a society will undergo governmental changes that negatively affect local business activity is known as ________.

A)volatility risk
B)systemic risk
C)political risk
D)credit risk

Question 32

The single greatest disadvantage of survey research is that it provides access to only a small amount of data in a single sweep.

Question 33

Which of the following steps of the market screening process involves the analysis of the quality of workforce,materials,and infrastructure?

A)identification of basic appeal of a market
B)assessment of the national business environment
C)measurement of market or site potential
D)selection of the market or site

Question 34

Which of the following steps of the market screening process involves examining the cost of transporting goods?

A)identification of basic appeal of a market
B)assessment of the national business environment
C)measurement of market or site potential
D)selection of the market or site

Question 35

Which of the following steps of the screening process for potential markets involves the evaluation of fiscal and monetary policies of a nation?

A)identification of basic appeal of a market
B)measurement of market or site potential
C)assessment of the national business environment
D)selection of the market or site

Question 36

The first step in the screening process for potential markets and sites is to ________.

A)select a favorable market or site
B)measure the market or site potential
C)identify the basic appeal of a market
D)assess the national business environment

Question 37

Which of the following steps of the the market screening process involves an evaluation of the government bureaucracy?

A)identification of basic appeal of a market
B)assessment of the national business environment
C)measurement of market or site potential
D)selection of the market or site

Question 38

Which of the following will most likely force international companies to cancel proposed investments?

A)low rates of inflation
B)increasing budget deficits
C)rising productivity levels
D)an appreciating currency

Question 39

Which of the following steps should occur in the screening process for potential markets after the basic demand for a product has been identified?

A)assessment of the national business environment
B)selection of the market or site
C)measurement of the market or site potential
D)assessment of climate suitability

Question 40

Industry data cannot indicate how individuals feel about a company or its products.

Question 41

If the income-elasticity coefficient for coffee is 0.5,the demand for coffee will ________.

A)decrease 0.5 percent for every 1.0 percent increase in income
B)increase 1.0 percent for every 5.0 percent increase in income
C)increase 0.5 percent for every 1.0 percent increase in income
D)decrease 0.5 percent for every 0.5 percent increase in income

Question 42

When developing a market-potential indicator for an emerging market,market growth rate is typically estimated from the ________.

A)per capita private consumption
B)GDP
C)total population
D)percentage of a market's population in the middle class

Question 43

The sensitivity of demand for a product relative to changes in income is called ________.

A)income elasticity
B)demand shaping
C)income distribution
D)market intensity

Question 44

Developing a market-potential indicator for an emerging market is useful for a company planning on ________.

A)exporting
B)licensing
C)joint ventures
D)acquisitions

Question 45

A typical industry analysis includes the ________.

A)experience and qualifications of the researcher
B)structure of the wholesale and retail distribution networks
C)accurate forecast of unforeseen political changes in the country
D)history of currency fluctuations

Question 46

When developing a market-potential indicator for an emerging market,the size of the market is typically estimated from the nation's ________.

A)income elasticity
B)GDP
C)total population
D)GDP at purchasing power parity

Question 47

Issues regarding potential threat from substitute products in a market are addressed in ________.

A)security analysis
B)technical analysis
C)product fit analysis
D)competitor analysis

Question 48

________ refers to management of the physical flow of products from the point of origin as raw materials to end users as finished products.

A)Operations research
B)Logistics
C)Warehousing
D)Environmental scanning

Question 49

When developing a market-potential indicator for an emerging market,the ________ factor attempts to assess channels of distribution and communication.

A)market size
B)market intensity
C)commercial infrastructure
D)economic freedom

Question 50

Which of the following statements is true about country image and its effects on global companies?

A)It embodies all important facets of a nation's business environment.
B)If a country's image is positive in one product class,it tends to be positive in all other product classes as well.
C)An image,once formed,seldom changes over time.
D)Products made in emerging countries are evaluated more positively than products made in developed countries.

Question 51

In the context of the sensitivity of demand for a product relative to changes in income,a coefficient greater than 1.0 conveys a(n)________.

A)surplus product
B)economic equilibrium
C)economic surplus
D)income-elastic product

Question 52

Which of the following steps of the market screening process involves the determination of a product's income elasticity?

A)identification of basic appeal of a product
B)measurement of market or site potential
C)assessment of the national business environment
D)selection of the market or site

Question 53

When creating a market-potential indicator for an emerging market,market consumption capacity is often estimated from the ________.

A)growth in gross domestic product
B)percentage of a market's population in the middle class
C)gross domestic product at purchasing power parity
D)amount of energy the total population produces

Question 54

Which of the following variables attempts to estimate market openness when creating a market-potential indicator for an emerging market?

A)market consumption capacity
B)market receptivity
C)market size
D)market intensity

Question 55

When developing a market-potential indicator for an emerging market,market intensity is typically estimated from the ________.

A)per capita private consumption
B)GDP
C)total population
D)percentage of a market's population in the middle class

Question 56

Which of the following is an income-elastic product?

A)food
B)utilities
C)jewelry
D)beverages

Question 57

When creating a market-potential indicator for an emerging market,an estimate of the wealth or buying power of a market can be formed by examining the ________.

A)market intensity
B)market growth rate
C)market size
D)market receptivity

Question 58

When creating a market-potential indicator for an emerging market,________ is estimated by determining a nation's volume of international trade as a percentage of GDP.

A)market receptivity
B)market intensity
C)market consumption capacity
D)market size

Question 59

During which stage of the market or site screening process do managers normally want to visit locations?

A)identification of basic appeal of a product
B)measurement of market or site potential
C)assessment of the national business environment
D)selection of the market or site

Question 60

Which of the following variables involved in market-potential analyses allows managers to rank countries from the largest to the smallest,regardless of a particular product?

A)market growth rate
B)market intensity
C)market size
D)market consumption capacity

Question 61

It is often difficult to conduct focus groups in ________ cultures where people have a tendency to agree with others in the group.

A)collectivist
B)masculine
C)low uncertainty avoidance
D)long term oriented

Question 62

In countries with high illiteracy rates,a(n)________ should not be used to collect information.

A)personal interview
B)written survey
C)focus group
D)field research

Question 63

Research in which people record information in personal diaries on their attitudes,behaviors,or purchasing habits is called a ________.

A)survey
B)focus group
C)consumer panel
D)literature review

Question 64

________ is relatively inexpensive because it has already been collected,analyzed,and summarized by another party.

A)Primary data
B)Secondary data
C)Raw data
D)Transaction data

Question 65

The process of collecting and analyzing original data and applying the results to current research needs is called ________.

A)primary market research
B)secondary market research
C)data harvesting
D)data mining

Question 66

Some researches consist of errors due to misinterpretations by foreign language interpreters.Which of the following difficulties associated with conducting international market research does this example signify?

A)protection of data
B)availability of data
C)cultural differences
D)political differences

Question 67

Research in which an interviewer asks current or potential buyers to answer written or verbal questions to obtain facts,opinions,or attitudes is called a ________.

A)survey
B)covert observational research
C)consumer panel
D)brainstorming session

Question 68

The single greatest advantage of ________ is the ability to collect vast amounts of data in a single sweep.

A)survey research
B)focus groups
C)consumer panels
D)interviews

Question 69

A(n)________ is an international trip by government officials and businesspeople that is organized by agencies of national or provincial governments for the purpose of exploring international business opportunities.

A)focus group
B)field research
C)expo
D)trade mission

Question 70

Which of the following stages of the market or site screening process involves competitor analysis?

A)identification of basic appeal of a product
B)measurement of market or site potential
C)assessment of the national business environment
D)selection of the market or site

Question 71

Which of the following is a difficulty associated with conducting international market research?

A)protection of data
B)availability of data
C)economic differences
D)political differences

Question 72

An unstructured but in-depth interview of a small group of individuals by a moderator to learn the group's attitudes about a company or its products is called a ________.

A)focus group
B)literature review
C)consumer panel
D)brainstorming session

Question 73

Which of the following is a source of secondary data for conducting international market research?

A)surveys
B)interviews
C)focus groups
D)trade associations

Question 74

The process of obtaining information that already exists within the company or that can be obtained from outside sources is called ________.

A)secondary market research
B)data mining
C)data harvesting
D)scientific data archiving

Question 75

________ cannot indicate how individuals feel about a company or its product.

A)Surveys
B)Industry data
C)Consumer panels
D)Interviews

Question 76

Collection and analysis of information used to assist managers in making informed decisions is known as ________.

A)social stratification
B)market research
C)organizational identification
D)entrepreneurship

Question 77

Which of the following stages of the market or site screening process involves an assessment of potential threat from substitute products?

A)identification of basic appeal of a product
B)measurement of market or site potential
C)assessment of the national business environment
D)selection of the market or site

Question 78

An exhibition at which members of an industry showcase their latest products,study activities of rivals,and examine recent trends and opportunities is called a(n)________.

A)focus group
B)trade show
C)environmental survey
D)field research

Question 79

The annual income considered below the poverty line in one country is the annual income of a middle-class family in another country.Which of the following difficulties associated with conducting international market research does this scenario illustrate?

A)availability of data
B)protection of data
C)marketability of data
D)comparability of data

Question 80

Small and medium-sized companies often find trade missions very appealing because ________.

A)it gives companies an opportunity to visit new places
B)such trips are usually cheap even for the smallest of businesses
C)it provides access to important business officials and executives
D)it helps companies analyze the strategies of all major competitors