Analyzing International Opportunities
TRUE/FALSE QUESTIONS
1. During the site screening process, a site may be eliminated from consideration if it does not display an appropriate work ethic or educational attainment necessary for production.
(True; Easy; p. 340; LO1)
2. A government’s attitude toward trade and investment is reflected in the quantity and types of restrictions it places on imports, exports, and investment in its country.
(True; Easy; p. 341; LO1)
3. Under International Monetary Fund rules, governments cannot restrict international companies from freely removing profits earned in the domestic market.
(False; Moderate; p. 341; LO1)
4. Restrictions on profit repatriation can force companies to either hold cash in the host country or to reinvest it in new projects there.
(True; Easy; p. 341; LO1)
5. Regulations that can eliminate a market or site from further consideration include strict environmental regulations and requirements that companies divulge proprietary information.
(True; Moderate; p. 341; LO1) {AACSB: Technology}
6. The key element of political risk that concerns companies is unforeseen political change.
(True; Moderate; p. 342; LO1)
7. Political risk can threaten the market of an exporter, the production facilities of a manufacturer, or the ability of a company to remove profits from a host country.
(True; Easy; p. 342; LO1)
8. Managers usually prefer to take a reactive rather than a proactive stance toward political risk.
(False; Moderate; p. 342; LO1)
9. Political risk increases when a firm cannot predict the future political environment with a fair degree of accuracy.
(True; Moderate; p. 342; LO1)
10. When analyzing an emerging market, market size does not estimate the size of a market for a particular product, but rather the size of the overall economy.
(True; Moderate; p. 346; LO1)
11. When analyzing an emerging market, market receptivity estimates the wealth or buying power of a market from the expenditures of both individuals and businesses.
(False; Difficult; p. 346; LO1)
12. When analyzing an emerging market, market consumption capacity is often estimated from the percentage of a market’s population in the upper class, thereby concentrating on the core of an economy’s buying power.
(False; Difficult; p. 346; LO1)
13. When analyzing an emerging market, one way to estimate market receptivity is by determining a nation’s volume of international trade as a percent of GDP.
(True; Difficult; p. 347; LO1)
14. A lack of qualified local managers usually indicates the potential site must be dropped from consideration because no alternatives exist to solve this problem.
(False; Moderate; p. 347; LO1)
15. In the local infrastructure analysis, telecommunications is of chief importance given increasing reliance on electronic communication.
(True; Easy; p. 347; LO1) {AACSB: Technology; Communication}
16. Market research is the collection and analysis of information used to assist managers in making informed decisions.
(True; Easy; p. 350; LO2)
17. The three main difficulties associated with conducting international market research are availability of data, measurability of data, and comparability of data.
(False; Difficult; p. 350; LO2)
18. Given technological advances in emerging and developing nations, previously gathered quality information is easy to obtain.
(False; Moderate; p. 351; LO2) {AACSB: Technology}
19. The process of obtaining information that already exists within the company or that can be obtained from outside sources is called primary market research.
(False; Easy; p. 352; LO3)
20. One advantage of written surveys is that they can be effectively conducted in countries with high rates of illiteracy.
(False; Moderate; p. 357; LO4) {AACSB: Communication}
MULTIPLE CHOICE QUESTIONS
1. Locating production facilities within regional markets is popular because ________.
a. producing in one of a region’s countries provides duty-free access to every consumer in the whole trade bloc
b. it simplifies language gaps
c. it simplifies political and economic gaps
d. marketing strategies can then be standardized across the bloc
(a; Moderate; p. 338; LO1)
2. The first step in the screening process for potential markets and sites is to ________.
a. select the market/site
b. obtain government approval for research
c. identify basic appeal
d. assess the national business environment
(c; Easy; p. 338; LO1)
3. Assessing the national business environment is the ________ step in the screening process for potential markets and sites.
a. first
b. second
c. third
d. fourth
(b; Easy; p. 338; LO1)
4. Recognizing a lack of demand for snow skis in Indonesia would take place during the ________ stage of the screening process for potential markets and sites.
a. first
b. second
c. third
d. fourth
(a; Moderate; p. 339; LO1)
5. Selecting the market on site would take place in the ________ stage of the screening process for potential market and sites.
a. first
b. second
c. third
d. fourth
(d; Easy; p. 339; LO1)
6. During the ________ stage of the screening process for potential markets and sites, basic appeal for the product or service is identified.
a. first
b. second
c. third
d. fourth
(a; Easy; p. 339; LO1)
7. Measuring market or site potential takes place during the ________ stage of the screening process for potential markets and sites.
a. first
b. second
c. third
d. fourth
(c; Easy; p. 339; LO1)
8. Which of the following is the correct sequence in the screening process for potential markets and sites?
a. Measure market/site potential, identify basic appeal, select market/site, assess the national business environment
b. Identify basic appeal, assess the national business environment, measure market/site potential, select the market/site
c. Assess the national business environment, identify basic appeal, select the market/site, measure the potential
d. Select the market/site, measure the potential, assess the national business environment, identify basic appeal
(b; Moderate; p. 339; LO1)
9. Once the basic appeal of a market/site has been identified, which of these should occur in the screening process?
a. Assess the national business environment
b. Select the market/site
c. Measure the market/site potential
d. Conduct a climate suitability test
(a; Moderate; p. 339; LO1)
10. Which of these is the final step in the screening process for potential markets and sites?
a. Assess the national business environment
b. Measure market/site potential
c. Select the market/site
d. Identify basic appeal
(c; Easy; p. 339; LO1)
11. Currency and liquidity problems create all of the following challenges for companies EXCEPT ________.
a. it is difficult to predict future earnings accurately in the home-country currency
b. it is difficult to calculate the capital a company needs for an investment
c. liquidating assets is more difficult
d. a company could find its assets liquidated quickly
(d; Difficult; p. 343; LO1)
12. Fiscal and monetary policies of a nation are evaluated in which step of the market/site screening process?
a. Assess the national business environment
b. Identify basic appeal
c. Select the market/site
d. Measure market/site potential
(a; Moderate; p. 343; LO1)
13. Poor fiscal and monetary policies of a nation’s central bank can cause which of the following?
a. High rates of inflation
b. Increasing budget deficits
c. Flagging innovation
d. All of the above
(d; Difficult; p. 349; LO1)
14. Which of the following refers to management of the physical flow of products from point of origin as raw materials to end users as finished products?
a. Market receptivity
b. Logistics
c. Commercial infrastructure
d. Environmental scanning
(b; Easy; p. 343; LO1)
15. Assessing how country image affects the decision to enter a particular market is part of the ________ stage of the screening process for potential markets and sites.
a. first
b. second
c. third
d. fourth
(b; Easy; p. 343; LO1)
16. All of these are true about country image EXCEPT that ________.
a. it embodies every facet of a nation’s business environment
b. the positive or negative image is the same across all product classes
c. it can change over time
d. products made in relatively more developed countries tend to be evaluated more positively
(b; Difficult; p. 343-344; LO1)
17. A product’s income elasticity is determined in which of these steps of the market/site screening process?
a. Measure market/site potential
b. Identify basic appeal
c. Select the market/site
d. Assess the national business environment
(a; Moderate; p. 346; LO1)
18. A typical industry analysis includes which of the following?
a. Volume of exports and imports of a product
b. Structure of the wholesale and retail distribution networks
c. Total expenditure on the product in the market and future outlook
d. All of the above
(d; Moderate; p. 345; LO1)
19. The sensitivity of demand for a product relative to changes in income is called ________.
a. income elasticity
b. product elasticity
c. the relativity principle
d. the market intensity
(a; Moderate; p. 346; LO1)
20. When analyzing an emerging market, an estimate of the wealth or buying power of a nation can be found by examining ________.
a. market intensity
b. market consumption capacity
c. market size
d. market receptivity
(a; Moderate; p. 346; LO1)
21. When analyzing an emerging market, which of these variables attempts to estimate market openness?
a. Market consumption capacity
b. Market receptivity
c. Market size
d. Market intensity
(b; Easy; p. 347; LO1)
22. When analyzing an emerging market, we can estimate ________ by determining a nation’s volume of international trade as a percent of GDP.
a. market receptivity
b. market intensity
c. consumption capacity
d. market freedom rate
(a; Easy; p. 347; LO1)
23. During which stage of the market/site screening process do managers normally want to visit locations?
a. Assess national business environment
b. Select the market/site
c. Measure market/site potential
d. Identify basic appeal
(b; Easy; p. 348; LO1)
24. International field trips represent an opportunity to ________.
a. personally experience a foreign culture
b. see firsthand what managers have only seen on paper
c. make personal contact with potential customers and distributors
d. all of the above
(d; Easy; p. 348; LO1)
25. Assessing the potential threat from substitute products takes place in which stage of the screening process for potential markets and sites?
a. First
b. Second
c. Third
d. Fourth
(d; Moderate; p. 349; LO1)
26. Competitor analysis is conducted during which stage of the market/site screening process?
a. Assess national business environment
b. Select the market/site
c. Measure market/site potential
d. Identify basic appeal
(b; Moderate; p. 349; LO1)
27. All of the following are main difficulties associated with conducting international market research EXCEPT ________.
a. availability of data
b. cultural problems
c. marketability of data
d. comparability of data
(c; Moderate; p. 350; LO2)
28. Which of the following is NOT a difficulty associated with conducting international market research?
a. Availability of data
b. Comparability of data
c. Cultural differences
d. Economic differences
(d; Moderate; p. 350; LO2)
29. Collection and analysis of information used to assist managers in making informed decisions is known as ________.
a. data collection
b. market research
c. secondary market research
d. market analysis
(b; Easy; p. 350; LO2)
30. 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. focus group
c. consumer panel
d. secondary research method
(a; Easy; p. 357; LO4) {AACSB: Communication}
31. An ongoing process of gathering, analyzing, and dispensing information for tactical or strategic purposes is called ________.
a. secondary research
b. consumer paneling
c. survey research
d. environmental scanning
(d; Easy; p. 357; LO4)
SHORT-ANSWER QUESTIONS
1. If a company cannot estimate the future political environment with a fair degree of accuracy, political risk is ________.
(increased; Easy; p. 342; LO1)
2. Unpredictable changes in currency values can make asset liquidation more ________.
(difficult; Moderate; p. 343; LO1)
3. Greater uncertainty in currency values likely reduces ________ in capital markets.
(liquidity; Difficult; p. 343; LO1)
4. ________ refers to management of the physical flow of products from point of origin as raw materials to end users as finished products.
(Logistics; Moderate; p. 343; LO1)
5. Products made in ________ countries tend to be evaluated more positively than products made in ________ countries.
(developed, less developed; Easy; p. 343; LO1)
6. Measuring market or site potential is the ________ step in the screening process for potential markets and sites.
(third; Moderate; p. 344; LO1)
7. The sensitivity of demand for a product relative to changes in income is called ________.
(income elasticity; Moderate; p. 346; LO1)
8. The ________ for a product is calculated by dividing a percentage change in the quantity of a product demanded by a percentage change in income.
(income elasticity coefficient; Difficult; p. 346; LO1)
9. An income elasticity coefficient greater than 1.0 conveys an ________ product.
(income elastic; Moderate; p. 346; LO1)
10. Secondary research is generally ________ than primary research because the data has already been collected, analyzed, and summarized by another party.
(less expensive; Moderate; p. 352; LO3)
11. The process of collecting and analyzing original data and applying the results to current research needs is called ________.
(primary market research; Moderate; p. 355; LO4)
12. 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) ________.
(trade show; Moderate; p. 355; LO4)
13. 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.
(trade mission; Moderate; p. 355; LO4)
14. An unstructured but in-depth interview of a small group of individuals (8 to 12 people) by a moderator to learn the group’s attitudes about a company or its product is called a ________.
(focus group; Moderate; p. 357; LO4)
15. Research in which people record in personal diaries information on their attitudes, behaviors, or purchasing habits is called a ________.
(consumer panel; Easy; p. 357; LO4)
16. Research in which an interviewer has current or potential buyers answer written or verbal questions to obtain facts, opinions, or attitudes is called a ________.
(survey; Easy; p. 357; LO4) {AACSB: Communication}
17. An ongoing process of gathering, analyzing, and dispensing information for tactical or strategic purposes is called ________.
(environmental scanning; Moderate; p. 357; LO4)
ESSAY QUESTIONS
1. How does the cost of transporting products affect the decision of where to locate manufacturing facilities? Discuss the concept of international logistics.
(Moderate; p. 343; LO1) {AACSB: Technology}
2. What is country image? Explain how it affects the screening process using examples.
(Moderate; p. 343-344; LO1)
3. Discuss the issues that managers should consider when entering new markets over the Internet.
(Difficult; p. 345; LO1) {AACSB: Technology}
4. What types of information are found in a typical industry analysis? How can companies use this information?
(Moderate; p. 345-346; LO1)
5. What is income elasticity? Explain how this concept can be used to measure market potential. If you like, supply an example using a hypothetical product.
(Moderate; p. 346; LO1)
6. Describe any five variables commonly included in a market potential analysis.
(Difficult; p. 346-347; LO1)
7. Briefly explain the main difficulties associated with conducting international market research.
(Moderate; p. 350-351; LO2)
8. Define secondary market research and briefly discuss any three secondary data sources.
(Difficult; p. 352-355; LO3)
9. What is primary market research? Describe any four primary market research methods.
(Difficult; p. 355-357; LO4) {AACSB: Communication}下载本文
