Question 1

Countries in which strong competition already exists are eliminated from consideration by most managers.

Accepted Answer

The answer of Countries in which strong competition already exists...

Question 2

One should not look at sociocultural forces as subjective.

Accepted Answer

Sociocultural forces are subjective because they are influenced by cultural norms, values, beliefs, and customs that vary from one society to another. These forces shape individuals' behaviors, attitudes, and perceptions, which are subjective experiences.

Question 3

The U.S.can be considered politically unstable compared to many countries.

Accepted Answer

The U.S. has a system of government that includes regular elections, a separation of powers, and a system of checks and balances. While there may be some political turbulence from time to time, overall the U.S. is considered politically stable. However, compared to some countries with more authoritarian regimes or longstanding stable governments, the U.S. may be considered less politically stable.

Question 4

Companies sometimes enter markets where strong competitors are in order to distract their competitors from entering their own home market.

Accepted Answer

This strategy is known as defensive marketing or flanking marketing, where a company enters a strong competitor's market to divert their attention and resources away from the company's own market.

Question 5

Regulations allowing the repatriation of earnings is considered an entry barrier.

Accepted Answer

Regulations allowing repatriation of earnings actually reduce entry barriers as it allows foreign companies to bring back their profits to their home country, making it more attractive to invest in a particular country.

Question 6

A low level of literacy in a country makes the use of mail questionnaires more appropriate for market research.

Accepted Answer

A low level of literacy in a country makes it difficult for individuals to read and comprehend the questions in a mail questionnaire, thus making it less appropriate for market research in such a country. In such cases, other methods such as face-to-face interviews or phone surveys may be more effective.

Question 7

Trade missions are comprised of a group of people in search of business opportunities.

Accepted Answer

Trade missions typically involve a delegation of representatives from various companies or organizations who are seeking to establish or expand business partnerships, explore new markets, and pursue other commercial opportunities. These missions are often organized and supported by government agencies or business associations to promote international trade and economic development.

Question 8

For a company interested in entering a foreign market,a report analyzing in detail all the five screening forces listed in the book is sufficient information.

Accepted Answer

While analyzing the five screening forces (economic, political-legal, socio-cultural, competitive, and technological) is an important step in entering a foreign market, it is not sufficient information. Other factors such as market research, understanding the target audience, and adapting the product or service to the local market are also crucial for success.

Question 9

When the historic growth rates of a product are known,future growth can be forecast by means of trend analysis.

Accepted Answer

Trend analysis involves analyzing historical data to identify patterns and trends in growth rates. By analyzing historic growth rates, it is possible to forecast future growth rates of a product. Thus, the statement is true.

Question 10

Cluster analysis is a technique for dividing objects into groups based on geographic or economic similarity.

Accepted Answer

Cluster analysis is a technique for dividing objects into groups based on their similarities across various dimensions, not limited to geographic or economic factors. It is used in various fields such as statistics, machine learning, and data mining to classify objects.

Question 11

CeBIT is a horse trading-related trade fair.

Accepted Answer

CeBIT is not a horse trading-related trade fair. It is a leading international trade fair for information technology, telecommunications, software and services, held annually in Germany.

Question 12

Trend analysis assumes that past conditions will remain constant.

Accepted Answer

Trend analysis is based on the assumption that the past trends will continue in the same way in the future. However, this assumption may not always hold true as market conditions and other external factors may change over time.

Question 13

The e-commerce potential index developed in the text includes three indexes: market size,market growth rate,and e-commerce readiness.

Accepted Answer

The e-commerce potential index developed in the text includes three indexes: market size, market growth rate, and e-commerce readiness.

Question 14

Estimation by analogy is an example of a market factor.

Accepted Answer

Estimation by analogy is a technique used in project management and software development for estimating effort and cost, based on historical data from similar projects, not a market factor. Market factors typically refer to external elements that affect the supply, demand, and pricing of products and services in the marketplace.

Question 15

Management should take the attitude that the stability of government policy is more important than is the particular form of government of a country.

Accepted Answer

If management prioritizes the stability of government policy, it can help ensure a more predictable business environment, which in turn can encourage investment and promote economic growth. The particular form of government may have some impact on this stability, but it is ultimately secondary to maintaining a consistent policy framework.

Question 16

Benefits of trade fairs include sales,making contacts with prospective buyers and agents,and competitive intelligence.

Accepted Answer

Trade fairs provide opportunities for businesses to showcase their products or services, network with potential customers and partners, and learn about their competitors and industry trends. These activities can lead to increased sales, valuable connections, and valuable market insights.

Question 17

Managers may consider entering a market in which strong competition already exists,if they believe entering a competitor's home market will distract the competitor's attention from the new entrant's own home market.

Accepted Answer

This strategy is known as offensive competitive strategy, where a company enters its competitor's market to weaken their market position and divert their attention from their own market.

Question 18

Trend analysis and cluster analysis are used in the third screening phase.

Accepted Answer

Trend analysis and cluster analysis are typically used in the initial phases of screening or analysis to identify patterns, trends, or groups within data, not specifically in a third screening phase. The process and phases of screening can vary depending on the context or industry.

Question 19

When a firm's personnel have had no experience in a country,management should probably use the company's research personnel to conduct local market research.

Accepted Answer

The answer of When a firm's personnel have had no...

Question 20

Most companies can enter a market in stages.The order listed on the textbook is: establishment of a foreign sales company,exporting,local assembly,and manufacturing.

Accepted Answer

The typical order for entering a market in stages is usually exporting first, followed by establishing a foreign sales company, then local assembly, and finally manufacturing.

Quiz 12: Assessing International Markets