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					                                                       Ch 12: Analyzing International Opportunities


                                         CHAPTER 12
                   ANALYZING INTERNATIONAL OPPORTUNITIES


MULTIPLE CHOICE QUESTIONS

51.   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


52.   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


53.   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


54.   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


55.   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


56.   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



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Ch 12: Analyzing International Opportunities


       c.      third
       d.      fourth


57.    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


58.    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


59.    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


60.    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


61.    Exploring the cost of transporting goods is part of which step in the screening process for
       potential markets and sites?
       a.      Step 1: Identify basic appeal
       b.      Step 2: Assess the national business environment
       c.      Step 3: Measure market or site potential
       d.      Step 4: Select the market or site


62.    Quality of workforce, materials, and infrastructure is analyzed in which step of the screening
       process for potential markets and sites?
       a.      Step 1: Identify basic appeal
       b.      Step 2: Assess the national business environment


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                                                         Ch 12: Analyzing International Opportunities


      c.      Step 3: Measure market or site potential
      d.      Step 4: Select the market or site


63.   Assessing how culture affects the national business environment is part of the ________ stage
      of the screening process for potential markets and sites.
      a.       first
      b.       second
      c.       third
      d.       fourth


64.   Government regulation and government bureaucracy are evaluated in which step of the
      market/site screening process?
      a.      Identify basic appeal
      b.      Measure market/site potential
      c.      Analyze the infrastructure
      d.      Assess the national business environment


65.   Which of these government regulations or actions would indicate that it is quite receptive to
      international trade and investment?
      a.       Creating investment barriers to ensure domestic control of an industry
      b.       Requiring companies to divulge proprietary secrets
      c.       Allowing companies to remove profits earned in the domestic market
      d.       Barring companies entirely from certain sectors of the domestic economy


66.   Government regulations can ________.
      a.    create investment barriers to ensure domestic control of a company or industry
      b.    extend investment rules to bar international companies from competing in certain
            sectors of the domestic economy
      c.    restrict companies from freely removing profits earned in a nation
      d.    all of the above


67.   The key element of political risk that concerns companies is ________.
      a.     the cost of transporting materials and goods
      b.     unforeseen political change
      c.     currency and liquidity problems
      d.     letting past political events blind future opportunities


68.   The likelihood that a nation will undergo political changes that negatively affect business
      activities is known as ________.
      a.       business risk
      b.       investment risk
      c.       political risk
      d.       production risk




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Ch 12: Analyzing International Opportunities


69.    Specialists on the current political climate of a market include which of the following?
       a.      Political leaders
       b.      Union leaders
       c.      Reporters
       d.      All of the above


70.    Which of these typically lowers investor confidence and forces international companies to
       scale back or cancel proposed investments?
       a.      High rates of inflation
       b.      Increasing budget deficits
       c.      Falling productivity levels
       d.      All of the above


71.    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


72.    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


73.    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


74.    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




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                                                       Ch 12: Analyzing International Opportunities


75.   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


76.   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


77.   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


78.   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


79.   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


80.   A coefficient of ________ conveys an income-elastic product.
      a.      0.25
      b.      greater than 1.0
      c.      greater than 0.5 but less than 1.0
      d.      less than 1.0


81.   If the income-elasticity coefficient for coffee is 0.5, the demand for coffee will ________.
      a.       decrease 0.5 percent for every 1.0 percent increase in income
      b.       increase 1.0 percent for every 5.0 percent increase in income
      c.       increase 0.5 percent for every 1.0 percent increase in income
      d.       not move related to income because it is at the neutral level



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Ch 12: Analyzing International Opportunities



82.    Examples of income-elastic products include all of the following EXCEPT ________.
       a.    Computers
       b.    Video games
       c     Jewelry
       d.    Beverages


83.    Developing a market-potential indicator is useful to companies considering ________ when
       analyzing an emerging market.
       a.      exporting
       b.      licensing
       c.      joint ventures
       d.      wholly owned subsidiaries


84.    Which of these is NOT a variable commonly included in market-potential analysis of an
       emerging market?
       a.     Economic freedom
       b.     Commercial infrastructure
       c.     Fiscal and monetary policies
       d.     Market intensity


85.    When analyzing an emerging market, which of the following allows managers to rank
       countries from the largest to the smallest regardless of a particular product?
       a.      Market growth rate
       b.      Market intensity
       c.      Market size
       d.      Market consumption capacity


86.    When analyzing an emerging market, the ________ factor attempts to assess channels of
       distribution and communication.
       a.       market size
       b.       country risk
       c.       commercial infrastructure
       d.       market receptivity


87.    When analyzing an emerging market, market consumption capacity is often estimated from
       the percentage of a market’s population in the ________.
       a.      upper class
       b.      middle class
       c.      lower class
       d.      all of the above




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                                                     Ch 12: Analyzing International Opportunities


88.   When analyzing an emerging market, market size estimates the ________.
      a.    size of a market for a particular product
      b.    size of the overall economy
      c.    current and expected size of the market
      d.    buying power of the market


89.   When analyzing an emerging market, the ________ variable reflects the fact that although
      overall size of the market is important, so too is its rate of growth.
      a.       market intensity
      b        market consumption capacity
      c.       market receptivity
      d.       market growth rate


90.   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


91.   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


92.   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


93.   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




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Ch 12: Analyzing International Opportunities


94.    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


95.    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


96.    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


97.    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


98.    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


99.    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




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                                                        Ch 12: Analyzing International Opportunities


100.   In countries with high illiteracy rates, a ________ should not be used to collect information.
       a.      personal interview
       b.      observation of behavior
       c.      written survey
       d.      group interview


101.   The process of obtaining information that already exists within the company or that can be
       obtained from outside sources is called ________.
       a.      secondary market research
       b.      logistics management
       c.      primary market research
       d.      invalid market research


102.   Secondary data is ________ because it has already been collected, analyzed, and summarized
       by another party.
       a.      inaccurate
       b.      relatively inexpensive
       c.      unreliable
       d.      very expensive


103.   The process of collecting and analyzing original data and applying the results to current
       research needs is called ________.
       a.      primary market research
       b.      secondary survey research
       c.      secondary market research
       d.      original focus study


104.   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 ________.
       a.       focus group
       b.       trade show
       c.       environmental survey
       d.       trade mission


105.   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.
       a.       environmental scanning
       b.       trade show
       c.       logistics movement
       d.       trade mission




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Ch 12: Analyzing International Opportunities


106.   An unstructured but in-depth interview of a small group of individuals by a moderator to
       learn the group’s attitude about a company or its products is called a ________.
       a.       focus group
       b.       survey
       c.       consumer panel
       d.       secondary research


107.   Research in which people record in personal diaries information on their attitudes, behaviors,
       or purchasing habits is called a ________.
       a.      survey
       b.      focus group
       c.      consumer panel
       d.      secondary research method


108.   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


109.   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




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