Chapter 12: Analyzing International Opportunities
20 questions – 20 points
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or
answers the question.
1)Government regulation and government bureaucracy are evaluated in which step of
the market/site screening process?
A)Identify basic appeal
B)Assess the national business environment
C)Measure market/site potential
D)Analyze the infrastructure
2)Which of these is the final step in the screening process for potential markets
and sites?
A)Assess the national business environment
B)Identify basic appeal
C)Select the market/site
D)Measure market/site potential
3)Fiscal and monetary policies of a nation are evaluated in which step of the
market/site screening process?
A)Measure market/site potential
B)Select the market/site
C)Assess the national business environment
D)Identify basic appeal
Scenario: Markowitz Tools
Susan Markowitz is analyzing potential markets where Markowitz Tools can sell its
products, and she has narrowed her research to three markets. Country A is a
developing country with a low literacy rate, Country B has a group-oriented culture,
and Country C is a highly developed nation.
4)If Susan wants to get information in the least expensive way, she should use
________.
A)consumer panels
B)primary market research
C)secondary market research
D)large focus groups followed by surveys
5)In countries with high illiteracy rates, a ________ should not be used to collect
information.
A)written survey B) personal interview
C)group interview D) observation of behavior
6)Specialists on the current political climate of a market include which of the
following?
A)Union leaders B) Reporters
C)Political leaders D) All of the above
Scenario: Indy Bats, LLC
Indy Bats, LLC is looking for new markets. Matt Johnson has been appointed head of a
special task force that has been given the responsibility of identifying new markets
for the company's products. The company is especially interested in exploring
emerging economies.
7)For several markets, Matt has collected data on the number of telephones, TVs, and
fax machines per capita, and population per retail outlet, which helps determine
________.
A)commercial infrastructure B) country risk
C)market size D) market growth rate
International Business test: Due Monday, December 3rd, 07 - beginning of class on my desk
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8)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
C)Step 3: Measure market or site potential
D)Step 4: Select the market or site
9)Competitor analysis is conducted during which stage of the market/site screening
process?
A)Identify basic appeal
B)Select the market/site
C)Assess national business environment
D)Measure market/site potential
10)When analyzing an emerging market, we can estimate ________ by determining a
nation's volume of international trade as a percent of GDP.
A)market freedom rate B) market receptivity
C)market intensity D) consumption capacity
11)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
12)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
13)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
14)When analyzing an emerging market, market size estimates the ________.
A)buying power of the market
B)current and expected size of the market
C)size of the overall economy
D)size of a market for a particular product
15)Developing a market-potential indicator is useful to companies considering
________ when analyzing an emerging market.
A)exporting B) wholly owned subsidiaries
C)joint ventures D) licensing
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
16)Market research is the collection and analysis of information used to assist
managers in making informed decisions.
17)Focus group interviews tend to work best when moderators are natives of the
countries where the interviews are held.
18)The practice of relocating production to countries where workers' wages are lower
than they are in the home country is most common among makers of labor-intensive
products.
19)Volatile currency values make it profitable and easier for firms to predict
future earnings accurately in terms of the home-country currency.
20)The Internet can be especially useful in seeking information about potential
production sites.
International Business test: Due Monday, December 3rd, 07 - beginning of class on my desk
2