International Business CH 12 MCGRAWHILL

What process identifies desirable markets by eliminating the less desirable markets?

market screening

When companies analyze the external environmental forces for opportunities and threats, they are taking part in _________ scanning.

environmental

The logical first step of the market screening process is based on __________.

basic need potential

What are the three major areas of analysis in the second screening of the market screening process? (Check all that apply.)

inflation trends

interest rates

currency exchange rates

Both trend analysis and cluster analysis depend on _________ data to estimate market demand.

economic

The process of _________ __________ is an application of environmental scanning in which the firm recognizes markets by using analysis of the environmental forces active in markets to eliminate the undesirable markets.

market screening

What procedure in the strategic planning process provides information about potential threats and opportunities from various environmental forces?

environmental scanning

The initial screening is dependent on __________. (Check all that apply.)

physical forces

climate

topography

natural resources

What is the basis for the second screening of the market screening process?

financial and economic forces

Which of the following measures are used to estimate market demand? (Check all that apply.)

market factors

trend analysis

cluster analysis

market indicators

Market _________ serve as yardsticks for measuring the relative strength of a geographic region.

indicators

__________ refer to economic data that correlate highly with market demand for a product or service.

Market factors

A ________ refers to economic data used to measure the relative market strength of a geographic region.

market indicator

The third screening of the market screening process focuses on __________ forces.

political and legal

What is the basis of the fourth screening in the market screening process?

cultural

Which of the following are considered competitive forces? (Check all that apply.)

competitors' distribution channels

competitors' product line quality level

competitors' pricing policies

competitors' market share

Market _________ are economic data that correlate highly with market demand for a product or service.

factors

The screening process is not complete without a personal visit to the market that is being evaluated.

true

Which political and legal forces have the most impact on international companies? (Check all that apply.)

government controls

barriers to entry

stability of government policy

political stability

What makes the cultural screening process so difficult? (Check all that apply.)

Recognition of the factors is a subjective process.

Data are difficult to assemble.

The fifth screen in the market screening process is based on ___________ forces.

competitive

Which broad market screening approach is concerned with whether customers share similar wants and needs?

segment

What are the two broad market screening approaches for international companies? (Check two answers.)

segment

country

What are the purposes of a trade mission? (Check all that apply.)

to learn firsthand about a market

to meet customers face-to-face

to make contacts with people interested in representing your product

The fourth screening of the market screening process evaluates __________ forces.

cultural

Which of the following are potential problems with gathering primary data in a foreign market? (Check all that apply.)

lack of up-to-date maps

social desirability bias

low literacy levels

language barriers

Kelly wants to make sure the interviewer is happy with the information she provides, so Kelly talks only about the positive aspects of the product line and doesn't mention the three problem areas associated with the products. Kelly's desire to please the interviewer reflects the _________ _____________ bias.

social desirability

An online platform that connects a company with a group of interested consumers, thereby allowing the company to collaborate with the consumers on researching a product, is an online research _________.

community

Equity-based modes of market entry have ________ risk but _________ control than nonequity-based modes of market entry.

more;more

A trade _______________ is a market visit by a businessperson and/or a government official who is in search of business opportunities in a foreign country.

mission

Nicole's company was not able to gather accurate data regarding the use of disposable paper plates in regions of India because the people surveyed did not understand what a paper plate was. This example demonstrates how a __________ difference can affect research.

cultural

________ refers to respondent's desire to please that leads to answers designed to please the interviewer rather than reflect the respondent's true beliefs.

Social desirability

Which of the following are nonequity-based modes of entry in foreign markets? (Check all that apply.)

contracted manufacturing

franchising

turnkey projects

exporting

What are two approaches to getting around hindrances to market research in foreign markets? (Select two answers.)

the use of big data

online research communities

Which modes of entry into foreign markets has less risk but also less control of the products?

nonequity-based modes

What nonequity mode of entry involves the export of technology, management expertise, and capital equipment?

turnkey project

A contractual arrangement that allows one firm to use the patents, trademarks, or processes of another for a fee is called a(n) _________ agreement.

licensing

Which of the following is a nonequity-based mode of entry that requires the least amount of investment and is relatively free of risk?

exporting

Which of the following are characteristics of franchising? (Check all that apply.)

It has a well-developed and controlled marketing strategy.

It has a well-proven set of procedures.

It has a well-publicized brand name.

What mode of entry is an arrangement by which a firm provides management to another firm?

management contract

Carlo's company hired a contractor in Venezuela to design and build a plant, supply the process technology, provide the production inputs, and then train the operating personnel for the new facility. The contractor then turned the facility over to Carlo's company, which is based in California. This scenario is an example of __________.

a turnkey project

Which mode of entry is a contractual agreement granting a firm the right to use any kind of expertise of another firm in exchange for a fixed sum plus a royalty?

licensing

Which mode of entry is often called outsourcing?

contracted manufacturing

Which of the following are equity-based modes of entry? (Check all that apply.)

joint venture

wholly owned subsidiary

_________ is a form of licensing in which a firm contracts with another firm to operate a business under an established name according to a specific set of rules.

Franchising

A management contract is an arrangement in which one firm contracts with another to produce products to its specifications.

false

Which mode of entry involves a company contracting with another to produce products to its specifications?

contracted manufacturing

Which of the following can be either an equity-based or a nonequity-based mode of entry?

strategic alliance

Which mode of entry is a cooperative effort among two or more organizations that share a common interest in a business undertaking?

joint venture

Two large international companies are taking part in the rebuilding of the infrastructure of South Africa. These two companies have joined together for the purpose of doing business in a third market: South Africa. Their cooperative effort is an example of a(n) _______ __________.

joint venture