Deck 8: Global Market Participation

Question 1

Singapore offers government incentives to foreign universities that establish branch campuses in Singapore.

Answer 1

True

Question 2

Social networking site Friendster' s entry into Asia is an example of opportunistic internationalization.

Answer 2

True

Question 3

Developed countries are centered in North America,Western Europe,and Asia.

Answer 3

True

Question 4

In order to increase employment opportunities,Singapore offers government incentives to foreign investors in heavy industries such as steel.

Question 5

U.S.multinational companies establish strong business bases in Europe and Japan early in the development.

Question 6

Major companies such as Xerox and IBM entered the Japanese market due to a higher growth rate in that market.

Question 7

Macrovariables describe the total market in terms of economic,social,geographic,and political information.

Question 8

Two common errors of country screening are ignoring countries that offer good potential and spending too much time investigating poor prospects.

Question 9

In developing countries,higher risks are often compensated by higher returns,because competition is often less intense in these markets.

Question 10

Many companies expanded rapidly in the Pacific Rim in the early nineties for defensive reasons.

Question 11

Unlike most developing countries,China is one of the most competitive markets in the world.

Question 12

All firms that entered the Chinese market early now enjoy a first-mover advantage.

Question 13

In most countries,competition is more intense than it is in the triad.

Question 14

Pursuing potential abroad is more critical for U.S.-based companies than for firms in smaller home markets.

Question 15

Developed economies attract many multinational companies because they account for a disproportionately large share of the world's gross national product.

Question 16

For all industries,Japan is a must-win market.

Question 17

Lead markets are usually major research sites as well as the home markets of major global competitors in an industry.

Question 18

Developed economies attract many international companies because they offer a relatively predictable business environment.

Question 19

Global companies do not have to monitor lead markets and set up operations there.

Question 20

Companies may decide to internationalize when some of their key customers move abroad to pursue international opportunities.

Question 21

Canadian retail chains have been very successful in the United States because the markets are very similar.

Question 22

BRIC is a trading association including Brazil,Russia,India and China.

Question 23

The psychic distance paradox relates to culture shock sometimes experienced by managers entering foreign markets that they previously perceived as being similar to their home markets.

Question 24

Similar markets are those that share a common border.

Question 25

Marketing cost savings from geographic proximity is one advantage of a market group.

Question 26

BRIC is a term referring to Brazil,Russia,Indonesia and China.

Question 27

Opportunistic expansion is an internationalization strategy that is adopted

A)due to saturation in the domestic markets.
B)due to the need to expand to higher growth rate markets.
C)for defensive reasons.
D)in response to unsolicited orders from overseas customers.

Question 28

Psychic distance is the name of the phenomenon when managers believe that success in the home market is more easily transferable to markets similar to the one in which they currently compete.

Question 29

Born global firms show a propensity to enter national markets that are more similar to their home markets.

Question 30

Economies of scale is the idea that a certain minimum amount of effort is necessary before any impact will be achieved.

Question 31

Unlike established multinational firms,born globals rarely exhibit a propensity to first enter national markets that are more similar to their home markets.

Question 32

When a firm expands from its domestic market into foreign markets,this is

A)multi-localization.
B)internationalization.
C)internalization.
D)multinationalism.

Question 33

BRICK is a trading association including Brazil,Russia,India China,and South Korea.

Question 34

National proximity is the name of the phenomenon when managers believe that success in the home market is more easily transferable to markets similar to the one in which they currently compete.

Question 35

Cultural proximity is the name of the phenomenon when managers believe that success in the home market is more easily transferable to markets similar to the one in which they currently compete.

Question 36

Any country with a household income of $8,000 is not a potential market for microwave ovens.

Question 37

Unlike MNCs,born global firms do not show a propensity to enter national markets that are more similar to their home markets.

Question 38

Critical mass is the idea that a certain minimum amount of effort is necessary before any impact will be achieved.

Question 39

Economies of scale means that greater levels of production result in higher costs per unit.

Question 40

Economies of scale means that greater levels of production result in lower costs per unit.

Question 41

Most large,internationally active companies began their internationalization by

A)responding to government incentives.
B)opportunistic expansion.
C)following customers abroad.
D)exploiting different market growth rates.

Question 42

A triad country is also a

A)developed country.
B)developing country.
C)protectionist country.
D)low-technology country.

Question 43

Cemex,the largest cement producer in Mexico,

A)is an insignificant competitor outside its home market.
B)has only expanded into Spanish-speaking markets.
C)generates about half of its income from outside Mexico.
D)was eventually acquired by Holder Bank of Switzerland after Holder Bank entered the Mexican market.

Question 44

Which country is not a part of the triad?

A)U.K.
B)United States
C)Japan
D)Mexico

Question 45

Which country is part of the triad?

A)United States
B)Russia
C)Iraq
D)India

Question 46

The triad accounts for about ____ percent of sales for many industries.

A)30
B)50
C)80
D)95

Question 47

In which of these industries do firms commonly follow major customers abroad?

A)U.S.professional accounting
B)Automobile component suppliers
C)Express shippers
D)All of the above

Question 48

Triad nations are very attractive to global companies due to their

A)predictable business environment.
B)favorable trade and investment climate.
C)high GDP.
D)All of the above.

Question 49

Markets that serve as major research sites as well as home markets for major global competitors in an industry are called ____ markets.

A)forward
B)lead
C)must-win
D)triad

Question 50

Companies internationalize for defensive reasons because

A)they can learn valuable information that will help them in their home market.
B)of saturation in the domestic market.
C)of a need to expand to higher growth rate markets.
D)of unsolicited orders from overseas customers.

Question 51

The first stage of the country market selection process uses ____ to discriminate between countries that represent basic opportunities and those with little or no opportunity or those with excessive risk.

A)microindicators
B)macroindicators
C)rank ordering of potential target countries
D)competitive analysis

Question 52

Which country is part of the triad?

A)Russia
B)France
C)Egypt
D)South Africa

Question 53

Which country is not part of the triad?

A)Japan
B)Belgium
C)Brazil
D)France

Question 54

In the early 1990s,many firms entered markets in the Pacific Rim because of

A)above average economic growth.
B)government subsidies.
C)low political risk.
D)defensive reasons.

Question 55

Cemex,the largest cement producer in Mexico,entered which market first?

A)United States
B)Canada
C)Spain
D)Argentina

Question 56

Opportunistic expansion occurs when a firm becomes involved in foreign markets due to

A)market research.
B)competitive attacks on its home market.
C)government subsidies.
D)unsolicited orders from abroad.

Question 57

Social networking site Friendster' s entry into Asia is an example of ____ internationalization.

A)counter-parry
B)risk diversification
C)opportunistic
D)life-cycle

Question 58

Triad nations are very attractive to global companies due to their

A)low GDP.
B)protectionist trade environment.
C)importance to global competitive battles.
D)All of the above

Question 59

Triad nations are very attractive to global companies due to their

A)low GDP.
B)protectionist trade environment.
C)importance to global competitive battles.
D)None of the above

Question 60

Firms that recognize from the beginning that their customers and competition are international are called ____ firms.

A)internationalized
B)globalized
C)multi-domestic
D)born global

Question 61

Swiss Pharmaceuticals is investigating China as a potential stand-alone attractive market.Which of the following would be a reason to avoid China?

A)High competition
B)Low competition
C)High growth
D)Large market size

Question 62

ABC Autos is investigating India as a potential globally attractive market.Which of the following would be a reason to avoid India?

A)High competition
B)High growth
C)Large size
D)None of the above

Question 63

Swiss Pharmaceuticals is considering entering a lead market.It should look for markets known for their

A)demanding customers.
B)quality.
C)innovation.
D)All of the above

Question 64

Which is not a microindicator of market size?

A)Passenger cars
B)Steel production
C)Per capita income
D)Hospitals

Question 65

ABC Autos is investigating India as a potential stand-alone attractive market.Which of the following would be a reason to avoid India?

A)Low competition
B)High competition
C)High growth
D)Large market size

Question 66

A firm may opt to enter a group of countries in a single geographic region because of

A)critical mass.
B)economies of scale.
C)Both a and b
D)None of the above.

Question 67

Swiss Pharmaceuticals is considering entering a lead market.It should look for markets known for their

A)demanding customers.
B)high prices.
C)low prices.
D)high growth rates.

Question 68

Psychic distance refers to

A)how similar two national markets really are.
B)how similar managers believe two national markets to be.
C)how similar two competitors are.
D)the sum total of differences among markets where a multinational firm operates.

Question 69

Microindicators give an indication of

A)market size.
B)disposable income.
C)political conditions.
D)perceived need in the market.

Question 70

Tunetoy Industries is considering entering a lead market.Such a market would likely be a

A)transitional economy.
B)developing country.
C)triad country.
D)psychically close country.

Question 71

MabHill Corporation (MBH)is a U.S.MNC in an industry noted for its intensive competition and dominated by 3 global competitors,one of which is MBH.MBH holds a 50 percent market share (SOM)in the U.S. ,a 40 percent SOM in Europe,a 15 percent SOM in Japan,and a 10 percent SOM in Latin America.MBH should concentrate on increasing its SOM in

A)U.S.
B)Europe.
C)Japan.
D)Latin America.

Question 72

The markets of Australia,Canada,England,Ireland,New Zealand,South Africa,and the United States comprise the ____ Cluster.

A)Anglo
B)British
C)Commonwealth
D)None of the above

Question 73

Tunetoy Industries is considering entering a lead market.It should look for markets known for their

A)high growth rates.
B)innovation.
C)high prices.
D)economies of scale.

Question 74

Swiss Pharmaceuticals is investigating China as a potential globally attractive market.Which of the following would be a reason to avoid China?

A)Large size
B)High competition
C)High growth
D)None of the above

Question 75

SAB Miller attributes its success in China to Most large,internationally active companies began their internationalization by

A)cosmopolitan consumers.
B)distribution in rural markets.
C)experience in India.
D)first mover advantage.

Question 76

Karavel Foods sells convenience foods in the U.S.and is seeking new markets abroad.Karavel should concentrate on

A)lead markets.
B)developed countries.
C)developing countries.
D)None of the above

Question 77

Which of the following countries would likely be grouped together for marketing operations?

A)Georgia and Armenia
B)India and Pakistan
C)France and Germany
D)Brazil and Nigeria

Question 78

Macroindicators describe

A)market segments.
B)competitor strengths.
C)a total market.
D)None of the above

Question 79

Economies of scale are realized when

A)lower levels of production result in lower cost per unit.
B)higher levels of production result in higher cost per unit.
C)higher levels of production result in lower cost per unit.
D)lower levels of production result in higher cost per unit.

Question 80

As a U.S.electronics manufacturing company,which of the following groups would you contact to determine the competitive structure of the Japanese electronics industry?

A)U.S.Chamber of Commerce in Japan
B)WTO
C)IMF
D)None of the above