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Q:
One option that intrigues Alistair is the process in which one company sells to another its obligation to make a purchase in a given country. This arrangement is known as ________.
A) barter
B) offset
C) switch trading
D) buyback
Q:
Gro-Tru would be engaging in ________, if it decides that in exchange for a hard-currency sale it would make a hard-currency purchase of an unspecified product from the importing nation in the future.
A) barter
B) offset
C) switch trading
D) buyback
Q:
Which of the following methods would Gro-Tru be implementing if it exchanges its products directly for other goods or services without the use of money?
A) barter
B) offset
C) switch trading
D) buyback
Q:
Alistair has identified an option that might help the firm deal with the importer's inability to pay with hard currency. The option involves selling goods or services that are paid for in whole or part with other goods or services. Which of the following methods is Alistair considering?
A) auction
B) bidding
C) countertrade
D) tendering
Q:
Which of the following methods of export/import financing is Techno Toys' bank using if it acts as an intermediary without accepting financial risk?A) documentary collectionB) buybackC) letter of creditD) advance payment
Q:
In some countries, people exchange electronic goods for Techno Toys instead of paying money for them. This practice is known as ________.
A) offset
B) counterpurchase
C) switch trading
D) barter
Q:
Export/import financing in which an exporter ships merchandise and later bills the importer for its value is called ________.A) advance paymentB) open accountC) a letter of creditD) documentary collection
Q:
Letters of credit are popular among traders because most of the risks are assumed by ________.
A) distributors
B) importers
C) exporters
D) banks
Q:
A(n) ________ is guaranteed by both the exporter's bank in the country of export and the importer's bank in the country of import.
A) confirmed letter of credit
B) transferrable letter of credit
C) revocable letter of credit
D) irrevocable letter of credit
Q:
Which of the following letters of credit can be modified without obtaining approval from either the exporter or the importer, by the bank issuing the letter of credit?
A) revocable letter of credit
B) confirmed letter of credit
C) at sight letter of credit
D) usance letter of credit
Q:
A(n) ________ allows the bank to modify the terms of the letter only after obtaining the approval of both exporter and importer.
A) bill of exchange
B) bill of lading
C) confirmed letter of credit
D) irrevocable letter of credit
Q:
Which of the following is a method of export/import financing in which the importer's bank issues a document stating that the bank will pay the exporter when the exporter fulfills the terms of the document?
A) sight draft
B) bill of lading
C) letter of credit
D) bill of exchange
Q:
Which of the following refers to a contract between the exporter and shipper that specifies merchandise destination and shipping costs?
A) sight draft
B) bill of lading
C) letter of credit
D) bill of exchange
Q:
A(n) ________ becomes a negotiable instrument that can be traded among financial institutions when inscribed "accepted" by an importer.
A) sight draft
B) ocean bill of lading
C) time draft
D) inland bill of lading
Q:
Which of the following requires an importer to pay for the imported goods when they are delivered?
A) sight draft
B) inland bill of lading
C) air way bill of lading
D) time draft
Q:
A document ordering the importer to pay the exporter a specified sum of money at a specified time is called a ________.
A) bill of lading
B) letter of credit
C) bill of exchange
D) management contract
Q:
________ is a payment method commonly used when there is an ongoing relationship between the involved parties.
A) Advance payment
B) Documentary collection
C) Letter of credit
D) Open account
Q:
Which of the following financing methods entails the greatest risk for exporters?
A) supersedeas bond
B) advance payment
C) letter of credit
D) open account
Q:
Which of the following financing methods entails the greatest risk for importers?
A) documentary collection
B) advance payment
C) letter of credit
D) open account
Q:
Export/import financing in which a bank acts as an intermediary without accepting financial risk is called ________.
A) documentary collection
B) counterpurchase
C) buyback
D) open account
Q:
Advance payment is commonly used for export/import financing when ________.
A) two parties are unfamiliar with each other
B) the buyer has obtained credit for the transaction
C) the transaction is for a relatively high amount
D) the buyer has good credit rating at banks
Q:
Which of the following normally takes the form of a wire transfer of money from the bank account of the importer directly to that of the exporter prior to shipment of merchandise?
A) documentary collection
B) letter of credit
C) advance payment
D) open account
Q:
Which of the following is a method of export/import financing?
A) offset
B) buyback
C) switch trading
D) documentary collection
Q:
A(n) ________ exports products on behalf of an indirect exporter.
A) local distributor
B) subsidiary
C) sales representative
D) export management company
Q:
Companies involved in direct exporting typically rely on ________.
A) distributors
B) agents
C) export management companies
D) export trading companies
Q:
Explain why the availability of data is a challenge when conducting international research. How do interviews and focus groups help in the availability of data?
Q:
Discuss the importance of field trips in last stage of the market-screening process. How do trade shows and trade missions help companies conducting primary international research?
Q:
What is primary market research? Describe any four primary market research methods.
Q:
The single greatest disadvantage of survey research is that it provides access to only a small amount of data in a single sweep.
Q:
Focus group interviews tend to work best when moderators are natives of the countries where the interviews are held.
Q:
Trade missions are advantageous to small businesses as they are the most inexpensive method of getting introduced to important business contacts.
Q:
The process of collecting and analyzing original data and applying the results to current research needs is called primary market research.
Q:
To estimate an emerging market's openness, Matt could analyze its ________.
A) market receptivity
B) differentiation strategy
C) commercial infrastructure
D) country risk
Q:
Which of the following methods would be most appropriate for conducting primary market research in Country A?A) Internet researchB) verbal questioningC) written surveysD) consumer panels
Q:
The single greatest advantage of ________ is the ability to collect vast amounts of data in a single sweep.A) survey researchB) focus groupsC) consumer panelsD) interviews
Q:
Research in which an interviewer asks current or potential buyers to answer written or verbal questions to obtain facts, opinions, or attitudes is called a ________.
A) survey
B) covert observational research
C) consumer panel
D) brainstorming session
Q:
Research in which people record information in personal diaries on their attitudes, behaviors, or purchasing habits is called a ________.
A) survey
B) focus group
C) consumer panel
D) literature review
Q:
It is often difficult to conduct focus groups in ________ cultures where people have a tendency to agree with others in the group.
A) collectivist
B) masculine
C) low uncertainty avoidance
D) long term oriented
Q:
________ cannot indicate how individuals feel about a company or its product.
A) Surveys
B) Industry data
C) Consumer panels
D) Interviews
Q:
An unstructured but in-depth interview of a small group of individuals by a moderator to learn the group's attitudes about a company or its products is called a ________.
A) focus group
B) literature review
C) consumer panel
D) brainstorming session
Q:
Define secondary market research and briefly discuss any three secondary data sources.
Q:
What are the factors managers consider when analyzing industrialized markets? Discuss why the comparability of data is a major challenge while conducting international research.
Q:
Describe any five variables commonly included in creating a market-potential analysis for an emerging market.
Q:
What types of information are found in a typical industry analysis? How can companies use this information?
Q:
Interviews and focus groups are two main sources of secondary data that help managers make informed decisions.
Q:
Industry data cannot indicate how individuals feel about a company or its products.
Q:
Secondary data tends to be very expensive because it has already been analyzed and summarized by another party.
Q:
The process of obtaining information that already exists within the company is called secondary market research.
Q:
The potential to conduct written surveys is independent of the literacy rates among the local population.
Q:
If Matt wants to estimate the extent to which free-market principles predominate in an emerging market, Matt should consider the variable called ________.
A) economic freedom
B) commercial infrastructure
C) market receptivity
D) market intensity
Q:
If Matt wants to estimate an emerging market's spending capacity, he should focus on the ________.
A) population in the middle class
B) need for consumer products
C) demand for consumer and industrial products
D) volume of imports
Q:
For several emerging markets, Matt has collected data on the number of telephones, TVs, and fax machines per capita, and population per retail outlet, which assesses the ________.
A) economic freedom
B) commercial infrastructure
C) market growth rate
D) market size
Q:
Which of the following would be the least expensive method in terms of both time and money, for conducting a market research in Country C?A) structured interviewsB) surveysC) data from the InternetD) focus groups
Q:
Which of the following would be most appropriate for conducting primary market research on attitudes, behaviors, and purchasing habits in Country B?
A) Internet-based research
B) focus groups
C) consumer panels
D) data from trade agencies
Q:
If Susan wants to obtain information in the least expensive way, she should use ________.
A) secondary market research
B) consumer panels
C) structured interviews
D) large focus groups followed by surveys
Q:
The income-elasticity coefficient for Zulu doll is 1.2, which means the demand for Zulu doll will ________.A) increase 1.2 percent for every 1.0 percent increase in incomeB) decrease 1.0 percent for every 1.2 percent increase in incomeC) decrease 1.2 percent for every 1.0 percent increase in incomeD) remain stagnant since 1.2 is the equilibrium value
Q:
An ongoing process of gathering, analyzing, and dispensing information for tactical or strategic purposes is called ________.A) data harvestingB) peer productionC) survey researchD) environmental scanning
Q:
Small and medium-sized companies often find trade missions very appealing because ________.
A) it gives companies an opportunity to visit new places
B) such trips are usually cheap even for the smallest of businesses
C) it provides access to important business officials and executives
D) it helps companies analyze the strategies of all major competitors
Q:
A(n) ________ is an international trip by government officials and businesspeople that is organized by agencies of national or provincial governments for the purpose of exploring international business opportunities.
A) focus group
B) field research
C) expo
D) trade mission
Q:
An exhibition at which members of an industry showcase their latest products, study activities of rivals, and examine recent trends and opportunities is called a(n) ________.
A) focus group
B) trade show
C) environmental survey
D) field research
Q:
The process of collecting and analyzing original data and applying the results to current research needs is called ________.
A) primary market research
B) secondary market research
C) data harvesting
D) data mining
Q:
Which of the following is a source of secondary data for conducting international market research?
A) surveys
B) interviews
C) focus groups
D) trade associations
Q:
________ is relatively inexpensive because it has already been collected, analyzed, and summarized by another party.
A) Primary data
B) Secondary data
C) Raw data
D) Transaction data
Q:
The process of obtaining information that already exists within the company or that can be obtained from outside sources is called ________.
A) secondary market research
B) data mining
C) data harvesting
D) scientific data archiving
Q:
In countries with high illiteracy rates, a(n) ________ should not be used to collect information.
A) personal interview
B) written survey
C) focus group
D) field research
Q:
Some researches consist of errors due to misinterpretations by foreign language interpreters. Which of the following difficulties associated with conducting international market research does this example signify?
A) protection of data
B) availability of data
C) cultural differences
D) political differences
Q:
The annual income considered below the poverty line in one country is the annual income of a middle-class family in another country. Which of the following difficulties associated with conducting international market research does this scenario illustrate?
A) availability of data
B) protection of data
C) marketability of data
D) comparability of data
Q:
When creating a market-potential indicator for an emerging market, market consumption capacity is often estimated from the ________.
A) growth in gross domestic product
B) percentage of a market's population in the middle class
C) gross domestic product at purchasing power parity
D) amount of energy the total population produces
Q:
When developing a market-potential indicator for an emerging market, the ________ factor attempts to assess channels of distribution and communication.
A) market size
B) market intensity
C) commercial infrastructure
D) economic freedom
Q:
When developing a market-potential indicator for an emerging market, market intensity is typically estimated from the ________.
A) per capita private consumption
B) GDP
C) total population
D) percentage of a market's population in the middle class
Q:
When developing a market-potential indicator for an emerging market, market growth rate is typically estimated from the ________.
A) per capita private consumption
B) GDP
C) total population
D) percentage of a market's population in the middle class
Q:
When developing a market-potential indicator for an emerging market, the size of the market is typically estimated from the nation's ________.
A) income elasticity
B) GDP
C) total population
D) GDP at purchasing power parity
Q:
Which of the following is an example of a legal force that is used to assess the national business environment?
A) resource quality
B) environmental regulations
C) workforce qualifications
D) liquidity issues
Q:
While assessing the market potential of emerging markets, market consumption capacity is generally obtained through estimates of energy consumption.
Q:
Assessing potential in emerging markets by ranking locations using market-potential indicators is useful only for companies involved in exporting.
Q:
Food and utilities are examples of income-inelastic products.
Q:
A product for which demand increases more relative to an increase in income has an income-elasticity coefficient less than 1.
Q:
A product's income-elasticity refers to the sensitivity of the price of a product relative to changes in the income of consumer population.
Q:
Which of the following stages of the market-screening process would require John to visit a potential market personally?
A) assessment of the national business environment
B) selection of the market
C) identification of the basic appeal for markets
D) measurement of market potential
Q:
Which of the following stages of the market or site screening process involves competitor analysis?A) identification of basic appeal of a productB) measurement of market or site potentialC) assessment of the national business environmentD) selection of the market or site