Q&A Hero

Q: Scenario: Indy Bats LLCIndy Bats LLC is looking for new markets for its products. Matt Johnson has been appointed head of a special team that has been given the responsibility of identifying new markets for the company's products. The company is especially interested in exploring emerging economies.If Matt wants to estimate an emerging market's spending capacity, he should focus on the ________.A) population in the middle classB) need for consumer productsC) demand for consumer and industrial productsD) volume of imports

Q: What is meant by dumping? Describe the various roles of the World Trade Organization, including when a country is accused of dumping.

Q: Explain why job protection is a political motive for governments to restrict free trade. Why might a government interested in job protection insist on local content requirements for international firms doing business in that country?

Q: Scenario: Indy Bats LLCIndy Bats LLC is looking for new markets for its products. Matt Johnson has been appointed head of a special team that has been given the responsibility of identifying new markets for the company's products. The company is especially interested in exploring emerging economies.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 freedomB) commercial infrastructureC) market growth rateD) market size

Q: Explain how the national competitive advantage theory supports and builds upon the factor proportions theory.

Q: Scenario: Markowitz ToolsSusan Markowitz is analyzing potential markets where Markowitz Tools can sell its products, and she has narrowed her search to three markets. Country A is a developing country with a low literacy rate, Country B has a group-oriented culture, and Country C is a highly developed nation.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: Companies that belong to a nation's internationally competitive industries exist in isolation from supporting industries.

Q: Scenario: Markowitz ToolsSusan Markowitz is analyzing potential markets where Markowitz Tools can sell its products, and she has narrowed her search to three markets. Country A is a developing country with a low literacy rate, Country B has a group-oriented culture, and Country C is a highly developed nation.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 researchB) focus groupsC) consumer panelsD) data from trade agencies

Q: According to Michael Porter, advanced factors account for the sustained competitive advantage a country enjoys in a product.

Q: Scenario: Markowitz ToolsSusan Markowitz is analyzing potential markets where Markowitz Tools can sell its products, and she has narrowed her search to three markets. Country A is a developing country with a low literacy rate, Country B has a group-oriented culture, and Country C is a highly developed nation.If Susan wants to obtain information in the least expensive way, she should use ________.A) secondary market researchB) consumer panelsC) structured interviewsD) large focus groups followed by surveys

Q: National competitive advantage theory states that a nation's competitiveness in an industry depends on the capacity of the industry to innovate and upgrade.

Q: Scenario: Markowitz ToolsSusan Markowitz is analyzing potential markets where Markowitz Tools can sell its products, and she has narrowed her search to three markets. Country A is a developing country with a low literacy rate, Country B has a group-oriented culture, and Country C is a highly developed nation.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: An absolute advantage is the economic and strategic advantage gained by being the first company to enter an industry.

Q: Scenario: Chong's analysis of international marketsJohn Chong is an inexperienced entrepreneur in global business. He wants to sell his product, Zulu doll, a toy for kids below the age of eight, in every corner of the world. He wants to examine all potential markets but wants to keep his costs low. John has asked you to explain a few things about analyzing international markets.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 environmentB) selection of the marketC) identification of the basic appeal for marketsD) measurement of market potential

Q: Which element of national competitive advantage theory divides resources into two groups: basic and advanced? A) demand conditions B) factor conditions C) related and supporting industries D) firm, strategy, structure, and rivalry

Q: Scenario: Chong's analysis of international marketsJohn Chong is an inexperienced entrepreneur in global business. He wants to sell his product, Zulu doll, a toy for kids below the age of eight, in every corner of the world. He wants to examine all potential markets but wants to keep his costs low. John has asked you to explain a few things about analyzing international markets.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: According to the Porter diamond, which of the following is an example of an advanced factor? A) labor forces in the nation B) technological infrastructure in the nation C) climate in the nation D) natural resources in the nation

Q: Scenario: Chong's analysis of international marketsJohn Chong is an inexperienced entrepreneur in global business. He wants to sell his product, Zulu doll, a toy for kids below the age of eight, in every corner of the world. He wants to examine all potential markets but wants to keep his costs low. John has asked you to explain a few things about analyzing international markets.Which step of the market-screening process involves determining the income elasticity of the Zulu doll?A) selection of the marketB) assessment of the national business environmentC) identification of the basic appeal for marketsD) measurement of market potential

Q: National competitive advantage theory states that a nation's competitiveness in an industry depends on ________. A) the capacity of companies to create barriers to entry B) the capacity of the industry to innovate and upgrade C) the availability of government subsidies for industry development D) the availability of cheap factors of production in the nation

Q: Scenario: Chong's analysis of international marketsJohn Chong is an inexperienced entrepreneur in global business. He wants to sell his product, Zulu doll, a toy for kids below the age of eight, in every corner of the world. He wants to examine all potential markets but wants to keep his costs low. John has asked you to explain a few things about analyzing international markets.Which stage of the market-screening process is John involved in, while examining government regulations and bureaucracy in a market?A) assessment of the national business environmentB) selection of the marketC) identification of the basic appeal for marketsD) measurement of market potential

Q: Jack has always handled product returns on a case-by-case basis, but he is often unprepared to deal with too many cases of returns. Which of the following would most likely help Jack increase his repeat business? A) continuing with the current system, since it is already well-established B) accepting returns but crediting customer accounts slowly to discourage future returns C) planning for returns and giving prompt credits to customers D) avoiding receiving returns when possible to discourage the loss of revenue

Q: Scenario: Chong's analysis of international marketsJohn Chong is an inexperienced entrepreneur in global business. He wants to sell his product, Zulu doll, a toy for kids below the age of eight, in every corner of the world. He wants to examine all potential markets but wants to keep his costs low. John has asked you to explain a few things about analyzing international markets.When screening a potential market, which of the following would you advise John to do first?A) assess the national business environmentB) select the marketC) identify basic appeal for marketsD) measure market potential

Q: Chuck believes that his business has grown because of his personal involvement in every step of the way. What advice do you offer Chuck as he continues to expand his business in new Asian markets?A) Contact distributors directly to avoid misunderstandings that can arise when using third-party contacts.B) Always stick to corporate settings when doing business to avoid misunderstandings that can arise in less formal environments.C) Protect your interests by insisting on detailed contracts from the start.D) Use proper intermediaries as required in Pacific Rim nations.

Q: Chuck is convinced that his golf equipment will sell itself. But he is preparing a special presentation for Asian customers because he wants to make a good first impression. As an expert in culture of the Pacific Rim countries, which of the following would be your most likely advice to Chuck? A) Be sure to have a tight legal contract ready, to avoid product piracy problems. B) Aggressive salesmanship is unlikely to work in Pacific Rim countries. C) Have plenty of English-language business cards to pass around because most Asians know English and like the language. D) Avoid the confusion introduced by third-party contacts.

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: The single greatest advantage of ________ is the ability to collect vast amounts of data in a single sweep. A) survey research B) focus groups C) consumer panels D) interviews

Q: The new trade theory is mainly at odds with the ________ theory.A) international product life cycleB) comparative advantageC) national competitive advantageD) factor proportions

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: Which of the following is an argument offered by the new trade theory? A) It is in line with the factor proportions theory. B) There are gains to be made from specialization and increasing economies of scale. C) The companies first to market forgo the opportunities to create barriers to entry. D) Market forces alone play a role in assisting the home companies in a country.

Q: Explain how both the international product life cycle theory and the new trade theory ultimately result in lower priced goods. Include a definition of "first mover advantage" in your answer.

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: Discuss the limitations of the international product life cycle theory. How well does the theory explain current trade patterns?

Q: In the maturing product stage of the international product life cycle theory, production facilities are introduced in countries with the highest demand.

Q: ________ cannot indicate how individuals feel about a company or its product. A) Surveys B) Industry data C) Consumer panels D) Interviews

Q: Eventually, Wallace expects that domestic production of the mousetrap will cease altogether. This would happen in the ________ stage of the product life cycle. A) new product B) maturing product C) adapted product D) standardized product

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: 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: Wallace expects that markets abroad will soon become fully aware of the existence of the product and its benefits. Which of the following life cycle stages will the product be a part of during that period? A) maturing product stage B) product decline stage C) standardized product stage D) new product stage

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: Wallace's executive team reviews the stages of the international product life cycle to understand better what to expect when the product is sold overseas. Since there is virtually no export market for the product at present, the product is most likely in which of the following stages of the international product life cycle? A) maturing product stage B) new product stage C) product decline stage D) standardized product stage

Q: In the ________ of the international product life cycle, competition from other companies selling similar products pressures companies to lower prices in order to maintain sales levels.A) product decline stageB) new product stageC) maturing product stageD) standardized product stage

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: During which stage of the product life cycle are companies looking for low-cost production bases in developing nations to supply a growing worldwide market? A) product decline stage B) new product stage C) maturing product stage D) standardized product stage

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: During which stage of the international product life cycle theory does demand rise and remain sustained for a fairly lengthy period of time? A) product decline stage B) new product stage C) maturing product stage D) standardized product stage

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: During which of the following stages of the international product life cycle theory does high purchasing power and buyer demand in an industrialized nation encourage a company to design and introduce a product concept? A) product decline stage B) new product stage C) maturing product stage D) standardized product stage

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 ________ theory states that a country's export eventually becomes its import. A) competitive advantage B) factor proportions C) international product life cycle D) new trade

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: The international product life cycle theory was put forth for ________. A) service goods B) abundant resources C) manufactured goods D) natural resources

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: The international product life cycle theory was developed by ________. A) Milton Friedman B) Karl Marx C) Michael Porter D) Raymond Vernon

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: Explain the factor proportions theory and discuss why it is at odds with the new trade theory.

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: Discuss the factor proportions theory and describe the evidence on this theory.

Q: Which of the following is a difficulty associated with conducting international market research? A) protection of data B) availability of data C) economic differences D) political differences

Q: The factor proportions theory of international trade was developed by Wassily Leontief.

Q: Collection and analysis of information used to assist managers in making informed decisions is known as ________. A) social stratification B) market research C) organizational identification D) entrepreneurship

Q: Factor proportions theory states that a country will produce and export those goods that require resources abundantly available within the country.

Q: Which of the following stages of the market or site screening process involves competitor analysis? A) identification of basic appeal of a product B) measurement of market or site potential C) assessment of the national business environment D) selection of the market or site

Q: Factor proportions theory states that factors in great supply relative to demand will be more costly than factors in short supply relative to demand.

Q: Which of the following stages of the market or site screening process involves an assessment of potential threat from substitute products? A) identification of basic appeal of a product B) measurement of market or site potential C) assessment of the national business environment D) selection of the market or site

Q: The Leontief paradox describes evidence ________. A) in support of the predictions of the mercantilist theory B) contrary to the predictions of the factor proportions theory C) that the assumptions of international product life cycle theory are invalid D) that the assumptions of the new trade theory are invalid

Q: Issues regarding potential threat from substitute products in a market are addressed in ________. A) security analysis B) technical analysis C) product fit analysis D) competitor analysis

Q: Factor proportions theory differs from the theory of comparative advantage in that the focus of factor proportions theory is on the ________. A) usage of the most abundant factors of production, while the focus of the comparative advantage theory is on the productivity of the production process B) accumulation of financial wealth in the form of gold by encouraging imports and discouraging exports, while the comparative advantage theory focuses on usage of the most abundant factors of production C) productivity of the production process, while the comparative advantage theory focuses on maximization of production and consumption D) minimization of trade surpluses, whereas the comparative advantage theory focuses on the mercantilist idea that international trade is a zero-sum game

Q: During which stage of the market or site screening process do managers normally want to visit locations? A) identification of basic appeal of a product B) measurement of market or site potential C) assessment of the national business environment D) selection of the market or site

Q: Factor proportions theory was developed by ________. A) Smith and Ricardo B) Ricardo and Ohlin C) Heckscher and Ohlin D) Heckscher and Smith

Q: When creating a market-potential indicator for an emerging market, ________ is estimated by determining a nation's volume of international trade as a percentage of GDP. A) market receptivity B) market intensity C) market consumption capacity D) market size

Q: The focus of factor proportions theory is on the ________. A) productivity of the production process B) cost-effectiveness of the production process C) use of depleting production factors D) use of expensive production factors

Q: Which of the following variables attempts to estimate market openness when creating a market-potential indicator for an emerging market? A) market consumption capacity B) market receptivity C) market size D) market intensity

Q: The ________ theory states that countries produce and export goods that require resources available in abundance and import goods that require resources in short supply. A) new trade B) absolute advantage C) international product life cycle D) factor proportions

Q: When creating a market-potential indicator for an emerging market, an estimate of the wealth or buying power of a market can be formed by examining the ________. A) market intensity B) market growth rate C) market size D) market receptivity

Q: How does the theory of comparative advantage differ from the factor proportions theory? Include a description of the factor proportions theory in your answer.

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: Explain the theory of comparative advantage using an example, and describe its assumptions and limitations.

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: Explain how the theory of absolute advantage conflicts with the theory of mercantilism.