Question 1

Trade as a percentage of GDP is used to measure ________.

Accepted Answer

A)   market intensity
B)   market size
C)   market receptivity
D)   market growth rate C

Question 2

All You Cosmetics (Scenario)
Executives of All You Cosmetics Company, a Canadian company, have hired a consulting firm, Brown and Associates, to identify foreign markets that might be appropriate for internationalization. Brown consultants have been working for two weeks with All You managers to identify the best foreign markets for the Canadian cosmetics company, which specializes in organic cosmetics and skin care products. So far, Brown consultants have narrowed down the list of countries to fifteen. However, the consultants need to eliminate unattractive markets and reduce the list to five nations, which will then be researched more closely.
-Which of the following factors should most likely be considered by Brown consultants as they screen countries for All You Cosmetics?

Accepted Answer

A)   Which markets have the highest number of skin cancer cases among women?
B)   In which markets are women the primary breadwinners for their families?
C)   Which markets have the highest number of environmentally friendly corporations?
D)   In which markets are organic cosmetics and skin care products currently unavailable? D

Question 3

According to the Market Potential Indicators index, ________ is an indicator of market intensity.

Accepted Answer

A)   average annual growth rate of primary energy use
B)   percentage share of middle class in income/consumption
C)   private consumption as a percentage of GDP and GNI per capita
D)   per-capita imports from the United States C

Question 4

According to the Market Potential Indicators index, ________ is an indicator of market size.

Accepted Answer

A)   real GDP growth rate
B)   telephones per 100 habitants
C)   population per retail outlet
D)   urban population and electricity consumption

Question 5

Which of the following is the most likely source for foreign market information, assessments, and statistics?

Accepted Answer

A)   World Trade Organization
B)   Canada's Ministry of Foreign Affairs
C)   U.S. Department of Commerce
D)   Council of the European Union

Question 6

In the Market Potential Indicators index, households with Internet access per 100 inhabitants are an indicator of ________.

Accepted Answer

A)   market intensity
B)   commercial infrastructure
C)   country risk
D)   market consumption capacity

Question 7

When determining a product's potential in numerous foreign markets, it is usually best to assume that buyers have identical needs and purchasing habits across the markets.

Accepted Answer

A) True 
 B)False

Question 8

Compare and contrast industry market potential and company sales potential. How is an estimate of industry market potential helpful to managers? What factors are necessary to determine industry market potential?

Accepted Answer

The answer of Compare and contrast industry market potential and...

Question 9

In order to estimate industry market potential, managers most likely require ________.

Accepted Answer

A)   market size and growth rates specific to the industry
B)   manufacturing specifications and production output
C)   anticipated improvements within public infrastructure
D)   expected long-term IT needs and e-commerce trends

Question 10

Australian Business Partner (Scenario)
The Coffee Cup Corporation (CCC) is a large U.S.-based coffee retailer with stores across America. After months of research, CCC executives have decided to open their first international store in Sydney, Australia. CCC managers have been assigned the task of selecting an appropriate Australian business partner for the coffee company. CCC managers flew to Sydney to interview potential business partners, and they have narrowed the list to three.
-Business Partner X, who owns a small chain of Sydney coffee shops, has offered to make an equity investment in CCC. Which of the following types of relationships would most likely result if Business Partner X is selected?

Accepted Answer

A)   turnkey operation
B)   licensing partnership
C)   franchising partnership
D)   international collaborative venture

Question 11

Estimates of company market potential provides managers with the information necessary to select the most appropriate business partners.

Accepted Answer

A) True 
 B)False

Question 12

The extent of a country's openness to imports is termed ________.

Accepted Answer

A)   market intensity
B)   market size
C)   market receptivity
D)   market growth rate

Question 13

Describe the purpose of CORE. How does it aid managers?

Accepted Answer

The answer of Describe the purpose of CORE. How does...

Question 14

Products or services that are well-received at a firm's home country are more likely to be accepted in foreign countries as well.

Accepted Answer

A) True 
 B)False

Question 15

Born-global companies seldom venture into countries outside their comfort zone.

Accepted Answer

A) True 
 B)False

Question 16

Explain the concept of a global market opportunity, and discuss the key questions to assess a firm's organizational readiness to pursue global market opportunities.

Accepted Answer

The answer of Explain the concept of a global market...

Question 17

Screening to identify the best countries is an essential task. It is especially important in the early stages of internationalization.

Accepted Answer

A) True 
 B)False

Question 18

Australian Business Partner (Scenario)
The Coffee Cup Corporation (CCC) is a large U.S.-based coffee retailer with stores across America. After months of research, CCC executives have decided to open their first international store in Sydney, Australia. CCC managers have been assigned the task of selecting an appropriate Australian business partner for the coffee company. CCC managers flew to Sydney to interview potential business partners, and they have narrowed the list to three.
-Which of the following statements most likely supports CCC managers selecting Business Partner Y instead of Business Partner Z?

Accepted Answer

A)   Business Partner Y has a good reputation in the marketplace.
B)   Business Partner Y is fairly young and hence requires experience in the food and beverage industry.
C)   Business Partner Y has distinct goals and objectives compared to CCC.
D)   Business Partner Y has the most experience in the automobile industry but now wants to venture into the food and beverage industry.

Question 19

Australian Business Partner (Scenario)
The Coffee Cup Corporation (CCC) is a large U.S.-based coffee retailer with stores across America. After months of research, CCC executives have decided to open their first international store in Sydney, Australia. CCC managers have been assigned the task of selecting an appropriate Australian business partner for the coffee company. CCC managers flew to Sydney to interview potential business partners, and they have narrowed the list to three.
-All of the following are criteria most likely established by CCC managers for choosing the best foreign business partner EXCEPT ________.

Accepted Answer

A)   the requirement for competent management skills and qualified staff
B)   familiarity with U.S. government franchising regulations
C)   knowledge about the food and beverage industry
D)   good connections with the Australian government

Question 20

Ongoing globalization has reduced the cost and risk of entering foreign markets.

Accepted Answer

A) True 
 B)False

Exam 12: Global Market Opportunity Assessment

Trade as a percentage of GDP is used to measure ________.

According to the Market Potential Indicators index, ________ is an indicator of market intensity.

According to the Market Potential Indicators index, ________ is an indicator of market size.

Which of the following is the most likely source for foreign market information, assessments, and statistics?

In the Market Potential Indicators index, households with Internet access per 100 inhabitants are an indicator of ________.

When determining a product's potential in numerous foreign markets, it is usually best to assume that buyers have identical needs and purchasing habits across the markets.

Compare and contrast industry market potential and company sales potential. How is an estimate of industry market potential helpful to managers? What factors are necessary to determine industry market potential?

In order to estimate industry market potential, managers most likely require ________.

Estimates of company market potential provides managers with the information necessary to select the most appropriate business partners.

The extent of a country's openness to imports is termed ________.

Describe the purpose of CORE. How does it aid managers?

Products or services that are well-received at a firm's home country are more likely to be accepted in foreign countries as well.

Born-global companies seldom venture into countries outside their comfort zone.

Explain the concept of a global market opportunity, and discuss the key questions to assess a firm's organizational readiness to pursue global market opportunities.

Screening to identify the best countries is an essential task. It is especially important in the early stages of internationalization.

Ongoing globalization has reduced the cost and risk of entering foreign markets.