Chapter 12, International Business, 20 Q – 20 P
Exam
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Important in determining the basic appeal in the screening process for potential markets and
1) _______
sites is a country's ________.
A) infrastructure
B) climate
C) competitive environment
D) religious beliefs
2) Research in which an interviewer has current or potential buyers answer written or verbal
questions to obtain facts, opinions or attitudes is called a ________.
A) focus group
B) consumer panel
C) survey
D) secondary research method
2) _______
Scenario: Indy Bats and Balls
Indy Bats and Balls 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 identifying potential markets in the emerging economies.
3) To get a measure of a market's openness, Matt could analyze a nation's ________.
A) country risk
B) market receptivity
C) economic freedom
D) commercial infrastructure
3) _______
4) Events with a negative impact ________.
A) are seen as negative only if the company has failed to adequately plan and take the
necessary precautions
B) can usually be avoided if they are known about early enough
C) usually create new opportunities for companies
D) are always bad for companies
4) _______
5) Logistics includes all of the following except ________.
A) distribution
B) storage
C) purchasing
5) _______
D) transportation
Scenario: Selecting a Potential Market
John Chaung is a rookie in the world of global business. He wants to sell his product, Zulu doll, in every corner of the
world. He wants to examine every potential market but wants to keep the costs low. Can you help?
6) The income elasticity coefficient for Zulu doll is 1.2, which means the demand for Zulu doll will
________.
A) increase 1.2 percent for every 1 percent increase in income
B) increase 1.0 percent for every 1.2 percent increase in income
C) remain stagnant since 1.2 is the neutral point
D) decrease 1.2 percent for every 1.0 percent increase in income
6) _______
1
7) All of these are true about country image except ________.
A) it is either positive or negative across all product classes
B) it can change over time
C) it embodies every facet of a nation's business environment
D) products made in relatively more developed countries tend to be evaluated more positively
E) All of the above.
7) _______
8) The likelihood that a nation will undergo political changes that negatively affect business
activities is known as ________.
A) political risk
B) production risk
C) business risk
D) investment risk
8) _______
9) Among Vietnamese consumers, products from ________ are considered superior.
A) Japan and Singapore
B) the United States and Germany
C) France and the U.K.
D) China and South Korea
9) _______
10) Which of these is essential to production in any country?
A) Availability of labor
B) Government control
C) Local financing
D) Tariffs and quotas
10) ______
11) Which of these is not an important issue for managers during the market and site screening
process?
A) Examining every potential market and every possible location
B) Approaching the screening of markets and sites in a systematic way
C) Limiting their market research to keep the process streamlined
D) Keeping the cost of research as low as possible
11) ______
12) The ________ variable reflects the fact that although overall size of the market is important, so
too is its rate of growth.
A) market receptivity
B) market growth rate
C) market consumption capacity
D) market intensity
12) ______
13) All of these are main difficulties associated with conducting international market research except
________.
A) availability of data
B) comparability of data
C) cultural problems
D) marketability of data
13) ______
2
Scenario: Selecting a Potential Market
John Chaung is a rookie in the world of global business. He wants to sell his product, Zulu doll, in every corner of the
world. He wants to examine every potential market but wants to keep the costs low. Can you help?
14) When screening a potential market which of these would you ask John to do first?
A) Select the market
B) Assess the national business environment
C) Measure the market potential
D) Identify basic appeal
14) ______
15) Potential loss of economies of scale due to producing in several locations other than just one to
better serve customers' special needs in a target market can be minimized through the use of
________.
A) government bureaucracy
B) flexible manufacturing methods
C) focus groups and consumer panels
D) income elasticity analysis
15) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
16) The three main difficulties associated with conducting international market research are
availability of data, measurability of data and comparability of data.
16) ______
17) Market receptivity estimates the wealth or buying power of a market from the expenditures of
both individuals and businesses.
17) ______
18) An unclear legal framework and inefficient bureaucracy are deterring investment in China.
18) ______
19) The Internet can be especially useful in seeking information about potential production sites.
19) ______
20) One way to estimate the market receptivity is by determining a nation's volume of international
trade as a percent of GDP.
20) ______
3