IB Chapter 12
Which of the following refers to a cross-border business alliance whereby two or more firms share resources, expenses, and risks to start a new business?
International collaborative venture
How does assessing industry market potential differ from assessing company sales potential?
Industry market potential assessment relies heavily on government data.
Which one of the following companies is in the first stage of the internationalization process, which involves analyzing organizational readiness to internationalize?
A company examining its strengths and weaknesses relative to international business.
Which of the following scenarios signals that a business is suited for international expansion?
A medical supply firm sells products unavailable in most of East Asia.
When Susan uses known information about one product category to draw conclusions about the potential sales of another product category, because the two are complementary, she is using which one of the following techniques?
A proxy indicator
________ is a cross-border business alliance whereby partnering firms pool their resources and share costs and risks to undertake a new business venture.
An international collaborative venture
Which of the following is the least costly way to get input on whether a product or service will sell abroad?
Ask trade partners about the local demand for the product
Juan has been asked to determine how his company's latest technology product may have to be adapted for the Chinese market. Juan is engaged in which task of the Global Market Opportunity Assessment?
Assessing the suitability of the firm's product for foreign market
Managers at ABC International are going through the six stages of defining and pursuing global market opportunities. So far, the managers have determined that the firm is ready to internationalize. What is the next step the managers should take?
Assessing the suitability of ABC's products for foreign markets
Which diagnostic tool helps managers assess the firm's readiness to internationalize?
CORE
In the Market Potential Index, countries are ranked on several variables. In emerging markets, the index shows that ________ is a very attractive market.
China
Juan works for a U.S.-based sports equipment company that wants to expand into Mexico. Juan is calculating an estimate of the share of annual industry sales the firm expects to generate in the Mexican market. In this scenario, what is Juan trying to determine?
Company sales potential
Which of the following offers an estimate of the share of annual industry sales that the firm expects to generate in a particular target market?
Company sales potential
Abbey, a manager at LM Electronics, should utilize which one of the following methods to get a rough estimate of the size of current industry sales in a country?
Conducting a simple trend analysis
Which of the following is NOT a method for estimating market potential?
Developing new technology
Which of the following is NOT helpful in estimating company sales potential?
Extensive marketing efforts to test the waters
Which one of the following activities is helpful in estimating industry market potential?
Following key customers into other markets
Which one of the following describes a business arrangement in which one company allows another the right to use its entire business system in exchange for fees and royalties?
Franchising
Which term defines a favorable combination of conditions, places, and timing that offers scenarios for exporting, investing, sourcing, or partnering in foreign markets?
Global market opportunity
Which screening method for potential country markets is being utilized when Jasmine starts with 65 prospective target countries and progressively narrows the choices to the top five by examining increasingly specific information?
Gradual elimination
Which of the following offers an estimate of the likely sales for all firms in a particular business sector in a given period?
Industry market potential
Which one of the following is NOT a characteristic of CORE?
It tracks how political, economic, and regulatory changes affect the FDI preferences of the world's top 1,000 firms.
A computer company has agreed to sell its intellectual property in exchange for royalties to a foreign firm that makes laptops. What kind of arrangement does this situation illustrate?
Licensing
Of the variables used to in the Market Potential Index, which of the following refers to the size and growth rate of the country's middle class?
Market consumption capacity
Which variable of the Market Potential Index is determined by consumer expenditures and the income share of the middle class?
Market consumption capacity
Which variable in the Market Potential Index refers to the buying power of a country's residents?
Market intensity
When estimating company sales potential in a foreign market, which one of the following determines the speed at which market entry occurs?
Market penetration timetable
Products and services that are the most suitable for foreign markets tend to have similar characteristics. Which of the following products or services would be most suitable for a foreign market?
Medical supplies in a large Eastern European country
Noor is assigned the duty of assessing industry market potential in a few possible target countries, but he is not confident he knows how to go about doing this. He has come to you for advice. What do you tell Noor to do?
Monitor the activities of key competitors in the target countries.
Which of the following reduces international business opportunities for a firm?
Obtaining higher cost inputs
What makes estimating industry market potential a difficult task?
Products are in various stages of the product life cycle in different markets.
Which of the following makes countries attractive for exports and foreign direct investment (FDI), but not for sourcing?
Rising GDP rates
________ is considered a gateway country to Southeast Asian markets.
Singapore
Vineeta and her fellow senior managers are using CORE as a diagnostic tool. They are answering questions about their company's organizational resources, skills, and motivation. After reviewing their answers, they decide to pursue a global market opportunity. On which stage of this internationalization process are Vineeta and her colleagues focusing their efforts?
The first stage: analyzing organizational readiness to internationalize
Samer is a manager in a U.S.-based company. He is attending an industry trade fair in China to interview prospective customers and distributors to determine how well his company's product is likely to sell in a Chinese market. Samer is asking questions regarding who will initiate the purchase of his company's products, who uses the products, and where people in China purchase products like the ones Samer's company makes. On which stage of the pursuit of internationalization is Samer focusing his efforts?
The second stage: assessing the suitability of the firm's product for foreign markets
Why are personal-care products, medical devices, and banking services often suitable products and services for a foreign market?
These products and services address universal needs.
Managers of Best Tools are concerned about whether their products are suitable for the overseas market. The products with the best international prospects would tend to have which one of the following characteristics?
They should serve a universal need for foreign consumers.
Which one of the following countries is considered an effective gateway country to the central Asian republics?
Turkey
Jason is engaged in a formal analysis of ABC International's preparedness to internationalize. Addressing which one of the following questions will help Jason ensure overcoming the channel members' frustration with ABC to fulfill customer orders abroad due to inadequate capacity?
What demands will internationalization place on ABC's resources, such as management marketing, production, and finance?
To expand awareness about the international market prospects of a product, Jason at ABC International should obtain an answer to which one of the following questions?
Who initiates purchasing of ABC's products?
When a researcher uses data about one country to gain insights about the same phenomenon for another, similar country, the researcher is using a(n) ________.
analogy
In deciding whether a product will sell in a foreign market, it would be best for companies to ________.
ask intermediaries about demand in the target market
Hong, a manager at Garden Furniture International, is interested in learning about market characteristics and other factors that indicate industry sales potential. Hong should most likely ________.
attend an international trade fair
Delhi Fast Food, an Indian fast food company, recently signed a deal that allows its name and menu to be used by a U.S. operator in exchange for royalties and other financial compensation. This is an example of ________.
franchising
Which of the following provides data, information, search engines and diagnostic tools on a wide range international business topics?
globalEDGE
The researcher who uses ________ begins with many target countries and pares down the choices after considering increasingly specific information.
gradual elimination
Global sourcing and contract manufacturing are examples of ________.
international collaborative ventures
A business arrangement where one company grants another the right to use intellectual property for a stated period of time in exchange for royalties is called ________.
licensing
A firm's sales are linked to uncontrollable factors such as ________.
the intensity of competition
If a pharmaceutical firm knows how many antibiotics are sold per 1,000 physicians in a country, it can assume that the ratio will be the same in a similar country. This example demonstrates ________.
the analogy method
Franchising is best described as the ________.
transfer of naming rights and job skills to independent operators