Deck 12: Assessing International Markets

Question 1

Market screening is a modified version of environmental scanning in which the firm studies the stock market to eliminate the less desirable markets.

Answer 1

False

Question 2

The first step in the market screening process is the economic/financial screening.

Answer 2

False

Question 3

Environmental scanning provides the firm with information about world opportunities and threats.

Answer 3

True

Question 4

Market indicators are economic data that correlate highly with market demand for a product.

Question 5

Climate,topography,and natural resources refer to environmental scanning.

Question 6

Market indicators and market factors measure market demand.

Question 7

A complete financial analysis is part of the financial and economic forces screening process.

Question 8

Knowing the number of imports to a specific country provides a firm with a complete measure of market potential.

Question 9

During the second screening,analysts are highly concerned with inflation trends,exchange rates,and interest rates.

Question 10

In environmental scanning the firm scans the world for environmental forces that might affect it.

Question 11

Market indicators measure relative market weaknesses.

Question 12

Market screening can assist firms that sell exclusively in the domestic market.

Question 13

Country and region are units of analysis for market screening.

Question 14

Analysis of the paying habits of customers is studied as part of the socio-cultural forces screening.

Question 15

Trade flows are good indicators of the magnitude of present sales.

Question 16

Country and segment are units of analysis for market screening.

Question 17

Imports to a country can be a good indicator of the potential demand for a new product.

Question 18

By conducting environmental scanning,a firm monitors the natural resources around the world that may affect it.

Question 19

During the second screening,analysts are highly concerned with inflation rates,education levels and entry barriers.

Question 20

In general,when the basic need for a product is absent,no reasonable expenditure of effort is likely to enable a firm to market its goods or services.

Question 21

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

Question 22

One should not look at sociocultural forces as subjective.

Question 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

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.

Question 29

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

Question 30

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

Question 31

CeBIT is a horse trading-related trade fair.

Question 32

Trend analysis assumes that past conditions will remain constant.

Question 33

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

Question 34

Estimation by analogy is an example of a market factor.

Question 35

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

Question 36

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

Question 37

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.

Question 38

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

Question 39

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.

Question 40

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.

Question 41

College students may make good interviewers for firms doing market research in foreign countries.

Question 42

All of the following are part of the E-commerce readiness index except:

A)Mobile phones per 1,000
B)Number of PCs per 1,000
C)Electricity consumption
D)Internet hosts per million people
E)Mobile telephony per 1,000

Question 43

Under the country screening process,in what order is the selection of foreign markets process presented in the textbook?

A)Basic needs,socio-cultural,economic/financial,political,and competitive
B)Basic needs,economic/financial,political,socio-cultural,and competitive
C)Basic needs,political,economic/financial,competitive,and socio-cultural
D)Basic needs,competitive,political,economic/financial,and socio-cultural
E)Basic needs,cultural,economic/financial,environmental,and socio-cultural

Question 44

According to the text,data on imports may not completely measure market potential because:

A)These data are not available for most countries and products.
B)Foreign competitors will not report export data accurately.
C)Transportation costs impact prices.
D)These data though easily available for most countries and products are not helpful.
E)Transportation costs do not impact prices and cannot be tracked.

Question 45

_____________ is used by management during the planning process to eliminate the less desirable markets.

A)Market screening
B)Environmental scanning
C)Country screening
D)Segment screening
E)Stock screening

Question 46

Corporate anthropology refers to the process of obtaining market research data through focus groups and surveys.

Question 47

___________ are economic data that serve as yardsticks for measuring the relative market strengths of various geographic areas.

A)Market factors
B)Trend analysis
C)Cluster analysis
D)Market indicators
E)Cluster indicators

Question 48

Market screening eliminates:

A)undesirable products.
B)markets which are judged to be less attractive.
C)environmental forces.
D)competition.
E)foreign direct investment.

Question 49

Credit availability,paying habits of customers and rates of return are considered in the:

A)First screening
B)Second screening
C)Third screening
D)Fourth screening
E)Fifth screening

Question 50

According to the text,market screening is a valuable method to

A)reduce the nearly 200 countries to pinpoint the most attractive prospects.
B)help domestic firms expand within their home markets.
C)help multinational companies avoid missing potential new markets.
D)All of the above.
E)reduce the nearly 200 countries to pinpoint the most attractive prospects and to help multinational companies avoid missing potential new markets.

Question 51

Market screening is divided into which of the following?

A)Environmental screening,country screening
B)Region screening,segment screening
C)Segment screening,environmental screening
D)Region screening,segment screening
E)Country screening,segment screening

Question 52

Social desirability bias can be seen as a cultural problem when conducting market research.

Question 53

The analyst is mostly concerned with which of the following during the second screening?

A)Trends in inflation
B)Interest rates
C)Exchange rates
D)Trends in inflation,interest rates,and exchange rates
E)Specialized industrial materials

Question 54

Environmental scanning is mostly used

A)during the planning process
B)to gather information on market weaknesses
C)to obtain information on opportunities and threats
D)to gather information on market strengths
E)during the planning process and to obtain information on opportunities and threats

Question 55

Climate,topography and natural resources are all considered part of the _________ stage of the country screening process.

A)basic needs
B)socio-cultural
C)economic/financial
D)political
E)competitive

Question 56

The Internet may eventually allow any firm the opportunity to conduct surveys anywhere in the world.

Question 57

As humans,it is easier to think of ourselves as market segments that extend across borders rather than as discrete country segments.

Question 58

General surveys are not done with a specific firm in mind.

Question 59

Generally,producers of _______experience little difficulty in assessing their basic need potential.

A)tractors
B)air conditioners
C)specialized industrial materials
D)frequently purchased consumer goods
E)chocolate

Question 60

_____________ is used by management during the planning process and provides information about threats and opportunities.

A)Market screening
B)Environmental scanning
C)Country screening
D)Segment screening
E)Stock screening

Question 61

Cultural problems and technical difficulties cause problems:

A)When preparing for field trips.
B)In the collection of secondary data.
C)In the collection of primary data.
D)During the economic/financial screening.
E)In the collection of tertiary data.

Question 62

Market research includes

A)Customized research
B)General surveys
C)Nonprofit surveys
D)Customized research,general surveys,and nonprofit surveys
E)Non-customized research

Question 63

Which of the following is true about trend analysis?

A)The competitors' market share plays a major role in trend analysis.
B)It is appropriate for use with the introduction of new products.
C)It is based on the assumption that past conditions are not an accurate predictor of the future.
D)It accounts for the impact of entry by competitors.
E)It is appropriate for introduction of new products,is based on the assumption that past conditions are not an accurate predictor of future,and accounts for the impact of entry by competitors.

Question 64

The market growth rate index is measured by:

A)Average growth rate in domestic energy + real growth rate in GDP
B)Average growth rate in commercial energy + real growth rate in GDP
C)Real growth rate in commercial energy + real growth rate in GDP
D)Average growth rate in commercial energy + average growth rate in GDP
E)Real growth rate in commercial energy + average growth rate in GDP

Question 65

Market size,market growth rate and E-commerce indexes are all part of:

A)Market factors
B)Trend analysis
C)Cluster analysis
D)Market indicators
E)Cluster factors

Question 66

According to the text,which of the following is true regarding "corporate anthropology"?

A)It involves ethnographic research techniques.
B)It involves extensive use of surveys.
C)It involves extensive use of focus groups.
D)It involves extensive psychological research techniques.
E)It involves extensive use of economic focus groups.

Question 67

Which of the following are not identified in the text as being elements of the competitive forces that an analyst uses to examine markets?

A)competitors' market shares
B)competitors' marketing strategies
C)competitors' staffing levels
D)competitors' levels of after-sales service
E)competitors' distribution channels

Question 68

Most companies enter a market in stages.Which of the following is not listed in the textbook as a stage of market entry?

A)Exporting
B)Establishment of a foreign sales company
C)Establishing a web site
D)Local assembly
E)Local manufacturing

Question 69

A statistical technique that divides objects into groups so that the objects within each group are similar is called:

A)trend analysis.
B)group classification analysis.
C)cluster analysis.
D)factor analysis.
E)trend factor.

Question 70

According to the text,a large exhibition,generally held at the same place and same time periodically,at which companies maintain booths to promote the sale of their products,is known as _________

A)a trade mission.
B)a product introduction.
C)a trade show.
D)a trade fair.
E)product fair.

Question 71

Size of the urban population and electricity consumption are part of __________ index.

A)market size
B)market growth rate
C)E-commerce readiness
D)Market factor
E)Market availability

Question 72

In a personal interview or phone survey situation,some respondents want to help the interviewer out of politeness,or just to please them.This is known as __________

A)market research.
B)response bias.
C)interviewer bias.
D)social desirability bias.
E)observer's bias.

Question 73

Entry barriers,profit remittance barriers,and policy stability are all part of the:

A)first screening
B)second screening
C)third screening
D)fourth screening
E)fifth screening

Question 74

Which of the following are not identified in the text as being elements of the competitive forces that an analyst uses to examine markets?

A)competitors' number,size and financial strength
B)competitors' marketing strategies
C)competitors' product portfolios
D)competitors' coverage of the market
E)competitor's pricing policies.

Question 75

Which of the following are false regarding sociocultural screening?

A)Sociocultural factors are fairly subjective.
B)Data are difficult to assemble,particularly from a distance.
C)Unless an analyst is a specialist in the country,he or she must rely on the opinions of others.
D)The use of checklists of sociocultural components can be useful.
E)Immigrants from the country are valuable as being representative data sources.

Question 76

According to the text,which of the following is true regarding "corporate anthropology"?

A)It involves extensive use of historical data on cultures.
B)It involves extensive use of surveys.
C)It involves watching consumers use products.
D)It involves extensive psychological research techniques.
E)It involves extensive use of economic focus groups.

Question 77

Average growth rate in commercial energy use + real growth rate in GDP compose the __________ index.

A)Market size
B)Market growth rate
C)E-commerce readiness
D)Market factor
E)Market availability

Question 78

___________ ___________ are economic data that correlate highly with market demand for a product.

A)Market factors
B)Trend analysis
C)Cluster analysis
D)Market indicators
E)Trend factors

Question 79

The final step in the screening process will generally include:

A)A field trip.
B)The use of secondary data.
C)A cost-benefit analysis.
D)A visit to a trade fair.
E)secondary trade analysis data.

Question 80

Entry barriers,profit remittance barriers,and policy stability are all part of the ___________ stage of market screening.

A)economic and financial
B)political and legal
C)sociocultural
D)market entry
E)economical and social