Global Business Quiz Ch 12

transfer of naming rights and job skills to independent operators

Franchising is best described as the​ ________.

An international collaborative venture

​________ is a ​cross-border business alliance whereby partnering firms pool their resources and share costs and risks to undertake a new business venture.

Company sales potential

​________ refers to an estimate of the share of annual industry sales that the firm expects to generate in a particular target market.

Using this country as an export market

A country has a large middle class with a relatively small but quickly rising GDP. Prices for commercial infrastructure remain high despite the lack of a highly skilled or trained workforce. Assume you work for a firm that creates a product appealing to the domestic middle class but not readily available in this market. Which type of international business​ expansion, if​ any, would you​ suggest?

the intensity of competition

A​ firm's sales are linked to uncontrollable factors such as​ ________.

Industry market potential assessment relies heavily on government data.

How does assessing industry market potential differ from assessing company sales​ potential?

Licensing does not include​ operators' skills training.

How does licensing differ from​ franchising?

the analogy method

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​ ________.

ask intermediaries about demand in the target market

In deciding whether a product will sell in a foreign​ market, it would best for companies​ to________.

China

In the Market Potential​ Index, countries are ranked on several variables. In emerging​ markets, the index shows that​ ________ is a very attractive market.

Medical supplies in a large Eastern European country

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?

gradual elimination

The researcher who uses​ ________ begins with many target countries and pares down the choices after considering increasingly specific information.

proxy indicators

Top​ Tools, a U.S. company that manufactures​ battery-powered tools, is considering the idea of selling its products in​ Colombia, an emerging market. Because there is little information about tool sales in​ Colombia, Top Tool researchers are gathering data about construction activity in Colombia. This approach is called​ ________.

Profiles about various countries

What information can be obtained from​ export.gov?

Products are in various stages of the product life cycle in different markets.

What makes estimating industry market potential a difficult​ task?

goals

When a firm is trying to determine whether it is ready for international​ expansion, the​ firm's ________ should be carefully considered.

distributors with complementary skills

When looking for potential foreign​ distributors, a firm should try to find​ ________.

The sales for laptops in the United States are adjusted to estimate demand in Canada.

Which of the following illustrates the analogy method in determining company sales​ potential?

Developing new technology

Which of the following is NOT a method for estimating market​ potential?

Opening a subsidiary in a foreign market

Which of the following is NOT a suggested method for deciding whether products are suitable for a foreign​ market?

Rising GDP rates

Which of the following makes countries attractive for exports and​ FDI, but not for​ sourcing?

Obtaining higher cost inputs

Which of the following reduces international business opportunities for a​ firm?

A medical supply firm sells products unavailable in most of East Asia.

Which of the following scenarios signals that a business is suited for international​ expansion?

These products and services address universal needs.

Why are​ personal-care products, medical​ devices, and banking services often suitable products and services for a foreign​ market?

Company readiness to export

​________ is a diagnostic tool that asks questions about a​ firm's organizational​ resources, skills, and motivation to determine whether the firm can be successful in exporting.