IB Chapter 12

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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


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