Question 1

All of the following are major external criteria for making a decision as to a mode of entry into a foreign market EXCEPT:

Accepted Answer

The company's leadership is an internal criteria, not an external criteria, for making a decision on a mode of entry into a foreign market. The other options listed (market size and growth, need for control, government regulations, and local infrastructure) are all external criteria that should be considered when making the decision.

Question 2

Which of the following is a step in the market entry decision process?

Accepted Answer

Deciding on a mode of entry is a crucial step in the market entry decision process as it involves selecting the best option for entering a new market such as exporting, licensing, franchising, joint venture, or direct investment. Forecasting a corporate budget, reviewing transportation strengths, and analyzing domestic demand are important tasks but are not specifically steps in the market entry decision process. Conducting a marketing audit can be a helpful step in assessing the feasibility and potential success of entering a new market but is not a defined step in the market entry decision process.

Question 3

When Coca-Cola looks at per capita income and the number of minutes that it would take for somebody to work to be able to afford a Coca-Cola product,the company is
Following which of the following steps of the initial screening process for
Market entry?

Accepted Answer

The step of the initial screening process for market entry that involves looking at per capita income and the number of minutes it would take for somebody to work to afford a Coca-Cola product is indicator and data selection. Therefore, the company is following the A) indicator and data selection step of the initial screening process.

Question 4

One method of assessing whether a company should enter a foreign market or not is to use an opportunity matrix.To use such a matrix,the marketer should assess high,
Moderate,and low opportunities as measured on business and political risk and
___________________ scales or cells.

Accepted Answer

The opportunity matrix is used to assess the potential for entering a foreign market based on business and political risk, as well as market opportunities. Therefore, the missing term must relate to market opportunities, making choice C the best option. Options A, B, D, and E do not directly relate to the criteria for assessing the potential of entering a foreign market using an opportunity matrix.

Question 5

Wrigley,the U.S.chewing gum manufacturer,has not been interested in most Latin American markets because many of the local governments imposed ownership
Restrictions.This would be an example of ________________ in markets.

Accepted Answer

This scenario describes "weeding out" in markets, where a company chooses not to enter or invest in a particular market due to certain government regulations or ownership restrictions that may pose as a barrier to their success.

Question 6

The ____________________ of a market refers to the country's distribution system, transportation network,and communication system.

Accepted Answer

The answer of The ____________________ of a market refers to...

Question 7

In global market entry,all of the following are entry decisions that must be made by management before entering an international market EXCEPT:

Accepted Answer

While the target budget is an important consideration in global market entry, it is not necessarily a decision that must be made by management before entering an international market. The other four options - time of entry, target product/market, goals of target markets, and mode of entry - are critical decisions that must be made in order to successfully enter a new market.

Question 8

Which of the following most accurately describes the first step in the market entry decision process?

Accepted Answer

The first step in the market entry decision process is to decide on the target product/market. This involves identifying the specific product or service to offer and the target market segment to focus on. Once this has been determined, the other decisions can be made, such as the mode of entry, time of entry, and marketing mix plan.

Question 9

In the mode of entry,many companies see liaison office as a low-cost ___________________.

Accepted Answer

A liaison office is typically established by a company in a foreign country for the purpose of maintaining communication and collecting information. It is not allowed to engage in any commercial activities, so it is a low-cost option for companies that want to establish a local presence but do not want to commit significant resources to a more involved mode of entry, such as a joint venture or wholly-owned subsidiary. Therefore, choice (C) "listening post" is the best option for filling in the blank.

Question 10

When Colgate-Palmolive sees prospects in countries with purchasing power as a major driver behind market opportunities and Coca-Cola looks at per capita income
And the number of minutes that it would take someone to work to be able to afford a
Coca-Cola product,they are following which of the following steps of the initial
Screening process for market entry?

Accepted Answer

Colgate-Palmolive and Coca-Cola are both using specific indicators and data to assess the potential of markets, which falls under the indicator and data selection step of the initial screening process for market entry.

Question 11

Markets can be classified in four types of countries based on their respective market attractiveness.Hong Kong and Singapore would fall into which of the types listed
Below (where the purpose would be to gather intelligence and establish a network)?

Accepted Answer

Hong Kong and Singapore are both considered platform countries, as they are highly developed and act as major hubs for trade and investment in their respective regions. These countries have stable political systems, strong economies, advanced infrastructure, and are attractive to foreign businesses seeking to establish a presence in Asia. Therefore, they are both ideal for gathering intelligence and establishing a network.

Question 12

When marketers are making the decision to enter an international market or not,the final step in the decision process is generally to:

Accepted Answer

The answer of When marketers are making the decision to...

Question 13

Markets can be classified in four types of countries based on their respective market attractiveness.All of the following are part of the classification scheme EXCEPT:

Accepted Answer

The four types of countries based on market attractiveness are platform countries, emerging countries, growth countries, and maturing and established countries. Low-tech countries is not a part of this classification scheme.

Question 14

The goals of a preliminary screen to determine market opportunities are to minimize mistakes of ignoring countries that offer viable opportunities for the product and:

Accepted Answer

The primary goal of a preliminary screen is to identify countries that offer potential for the product, while also avoiding countries with little or no potential. Offending local governments, cultures, or merchants, and violating local advertising laws are not relevant objectives of this screening process.

Question 15

To identify market opportunities for a given product or service,the international marketer usually starts off with a large pool of candidate countries.To narrow down
This pool,the company will typically do a(n)_______________________.

Accepted Answer

To narrow down the pool of candidate countries, the company will typically do a preliminary screen. This involves using various criteria to eliminate countries that are not suitable for the product or service being offered, such as market size, level of competition, legal and regulatory environment, and economic factors. The purpose of the preliminary screen is to identify a smaller group of countries that are worth further investigation and analysis.

Question 16

The four-step procedure that can be employed for the initial screening process includes all of the following EXCEPT:

Accepted Answer

The four-step procedure for the initial screening process includes selecting indicators and data selection, determining the importances of country indicators, rating the countries in the pool on each indicator, and computing the overall scores for each country. Analyzing parallel strengths and weaknesses of the market is not one of the steps included in the initial screening process.

Question 17

A four-step procedure that can be employed for the initial screening process includes the following EXCEPT:

Accepted Answer

The four-step procedure for initial screening process includes selecting indicators and collecting data, determining importance of country indicators, rating the countries in the pool on each indicator, and computing an overall score for each country. Hiring outside consultants to do a marketing audit is not included in the four-step process.

Question 18

When marketers are making the decision to enter an international market or not,the first step is generally to:

Accepted Answer

Before deciding on the budget, goals, mode or time of entry, a marketer should first carefully evaluate the potential target product/market. This involves market research, analyzing competitor activity, local regulations, cultural differences, and identifying potential barriers to entry. Only after this assessment has been completed can the marketer make an informed decision on how to proceed.

Question 19

The key determinant in the market entry choice decisions is the:

Accepted Answer

Market size and growth potential are the most important factors to consider when making market entry choice decisions. It is important to enter markets that have high growth potential and are large enough to support the company's operations. The other factors listed, such as risk, local infrastructure, flexibility, and internal resources and assets, are also important, but not as critical as market size and growth potential.

Question 20

Markets can be classified in four types of countries based on their respective market attractiveness.Which of the following of those types can be used to gather
Intelligence and establish a network?

Accepted Answer

The answer of Markets can be classified in four types...

Quiz 9: Global Market Entry Strategies

All of the following are major external criteria for making a decision as to a mode of entry into a foreign market EXCEPT:

Which of the following is a step in the market entry decision process?

When Coca-Cola looks at per capita income and the number of minutes that it would take for somebody to work to be able to afford a Coca-Cola product,the company is Following which of the following steps of the initial screening process for Market entry?

One method of assessing whether a company should enter a foreign market or not is to use an opportunity matrix.To use such a matrix,the marketer should assess high, Moderate,and low opportunities as measured on business and political risk and ___________________ scales or cells.

Wrigley,the U.S.chewing gum manufacturer,has not been interested in most Latin American markets because many of the local governments imposed ownership Restrictions.This would be an example of ________________ in markets.