Q&A Hero

Q: According to the text, which of the following is true regarding "corporate anthropology"? A. It involves extensive use of historical data on cultures. B. It involves extensive use of surveys. C. It involves watching consumers use products. D. All of the above. E. B and C.

Q: What are the advantages and disadvantages of exporting as a mode of entry into foreign markets?

Q: According to the text, which of the following is true regarding "corporate anthropology"? A. It involves ethnographic research techniques. B. It involves extensive use of surveys. C. It involves extensive use of focus groups. D. All of the above. E. A and C.

Q: What are the consequences of an international firm entering a foreign market on a significant scale?

Q: Market research includes: A. customized research. B. general surveys. C. nonprofit surveys. D. all of the above. E. two of A, B, and C.

Q: In terms of international business, briefly describe pioneering costs.

Q: Mail surveys can be a difficult foreign market research tool because: A. mail deliveries can take weeks. B. sometimes mail is not delivered at all. C. response rates for mail surveys may be low. D. all of the above. E. two of A, B, and C.

Q: What is meant by first-mover advantages? Describe three first-mover advantages for international businesses.

Q: Briefly describe the value that an international business can create in a foreign market?

Q: Cultural problems and technical difficulties cause problems: A. when preparing for field trips. B. in the collection of secondary data. C. in the collection of primary data. D. during the economic/financial screening. E. none of the above.

Q: What are the disadvantages of strategic alliances?

Q: In a personal interview or phone survey situation, some respondents want to help the interviewer out of politeness or just to please the interviewer. This is known as: A. market research. B. response bias. C. interviewer bias. D. social desirability bias. E. none of the above.

Q: How do firms respond to low cost pressures and low pressures for local responsiveness?

Q: According to the text, a large exhibition, generally held at the same place and same time periodically, at which companies maintain booths to promote the sale of their products is known as: A. a trade mission. B. a product introduction. C. a trade show. D. a trade fair. E. none of the above.

Q: Describe the localization strategy.

Q: The final step in the screening process will generally include: A. a field trip. B. the use of secondary data. C. a cost-benefit analysis. D. a visit to a trade fair. E. all of the above.

Q: What are the different types of competitive pressures that firms competing in a global marketplace face? How can firms respond to such pressures?

Q: Which of the following are not identified in the text as being elements of the competitive forces that an analyst uses to examine markets? A. Competitors' number, size, and financial strength B. Competitors' marketing strategies C. Competitors' product portfolios D. Competitors' coverage of the market E. None of the above (All are identified as elements of the competitive forces used by analysts.)

Q: What are the sources of economies of scales?

Q: Which of the following are not identified in the text as being elements of the competitive forces that an analyst uses to examine markets? A. Competitors' market shares B. Competitors' marketing strategies C. Competitors' staffing levels D. Competitors' levels of after-sales service E. None of the above (All are identified as elements of the competitive forces used by analysts.)

Q: What are core competencies? What are their advantages?

Q: Which of the following is false regarding sociocultural screening? A. Sociocultural factors are fairly subjective. B. Data are difficult to assemble, particularly from a distance. C. Unless an analyst is a specialist in the country, he or she must rely on the opinions of others. D. The use of checklists of sociocultural components can be useful. E. Immigrants from the country are valuable as being representative data sources.

Q: What are the different ways in which a firm can benefit from global expansion?

Q: Entry barriers are part of the ___________ stage of market screening. A. economic and financial B. political and legal C. sociocultural D. market entry E. none of the above

Q: Entry barriers, profit remittance barriers, and policy stability are all part of the: A. first screening. B. second screening. C. third screening. D. fourth screening. E. fifth screening.

Q: What constitutes an organizational structure?

Q: Most companies enter a market in stages. Which of the following is not listed in the textbook as a stage of market entry? A. Exporting B. Establishment of a foreign sales company C. Establishing a website D. Local assembly E. Local manufacturing

Q: What are operations of a firm? How can operations be categorized?

Q: Discuss the significance of value creation. According to Michael Porter, what are the two primary strategies for creating value?

Q: A statistical technique that divides objects into groups so that the objects within each group are similar is called: A. trend analysis. B. group classification analysis. C. cluster analysis. D. factor analysis. E. none of the above.

Q: Which of the following is true about trend analysis? A. None of the following. B. It is appropriate for use with the introduction of new products. C. It is based on the assumption that past conditions are not an accurate predictor of the future. D. It accounts for the impact of entry by competitors. E. B, C, and D

Q: How has the volatility of the current global exchange rate regime affected international businesses? How can the problem be tackled?

Q: ___________ is(are) economic data that correlate highly with market demand for a product. A. Market factors B. Trend analysis C. Cluster analysis D. Market indicators E. None of the above

Q: What changes have occurred in the International Monetary Fund in the recent years?

Q: The market growth rate index is measured by: A. none of B, C, D, or E. B. average growth rate in commercial energy + real growth rate in GDP. C. real growth rate in commercial energy + real growth rate in GDP. D. average growth rate in commercial energy + average growth rate in GDP. E. real growth rate in commercial energy + average growth rate in GDP.

Q: Elaborate on the main criticisms of the International Monetary Fund�s approach to financial crises

Q: Average growth rate in commercial energy use and real growth rate in GDP compose the __________ index. A. market size B. market growth rate C. e-commerce readiness D. market factor E. none of the above

Q: All International Monetary Fund loan packages come with conditions attached. Elaborate.

Q: Size of the urban population and electricity consumption are part of the __________ index. A. market size B. market growth rate C. e-commerce readiness D. market factor E. none of the above

Q: Describe the three broad types of financial crises that have occurred in the post-Bretton Woods era

Q: Market size, market growth rate, and e-commerce indexes are all part of: A. market factors. B. trend analysis. C. cluster analysis. D. market indicators. E. none of the above.

Q: Explain the concept of a currency board.

Q: All of the following are part of the e-commerce readiness index except: A. mobile phones per 1,000. B. number of PCs per 1,000. C. electricity consumption. D. Internet hosts per million people. E. two of the above.

Q: Briefly describe the pegged exchange rate regime.

Q: ___________ is(are) economic data that serve as yardsticks for measuring the relative market strengths of various geographic areas. A. Market factors B. Trend analysis C. Cluster analysis D. Market indicators E. None of the above

Q: In terms of speculation, describe the arguments for a fixed exchange rate system.

Q: Credit availability, paying habits of customers, and rates of return are considered in the: A. first screening. B. second screening. C. third screening. D. fourth screening. E. none of the above.

Q: What was the drawback of the Bretton Woods system?

Q: The analyst is mostly concerned with which of the following during the second screening? A. Trends in inflation B. Interest rates C. Exchange rates D. All of the above E. A and C

Q: Briefly describe the Bretton Woods agreement of 1944.

Q: According to the text, data on imports may not completely measure market potential because: A. these data are not available for most countries and products. B. foreign competitors will not report export data accurately. C. transportation costs impact prices. D. all of the above. E. two of A, B, and C.

Q: Describe gold standard and a balance-of-trade equilibrium.

Q: Generally, producers of _______ experience little difficulty in assessing their basic need potential. A. textiles B. air conditioners C. specialized industrial materials D. frequently purchased consumer goods E. chocolate

Q: Differentiate between a floating exchange rate and a pegged exchange rate.

Q: Climate, topography, and natural resources are all considered part of the _________ stage of the country screening process. A. basic needs B. sociocultural C. economic/financial D. political E. competitive

Q: Differentiate between a lead strategy and a lag strategy.

Q: Under the country screening process, in what order is the selection of foreign markets process presented in the textbook? A. Basic needs, sociocultural, economic/financial, political, and competitive B. Basic needs, economic/financial, political, sociocultural, and competitive C. Basic needs, political, economic/financial, competitive, and sociocultural D. Basic needs, competitive, political, economic/financial, and sociocultural E. None of the above

Q: Market screening is divided into: A. environmental screening and country screening. B. region screening and segment screening. C. segment screening and environmental screening. D. region screening and environmental screening. E. country screening and segment screening.

Q: Explain the concept of economic exposure. How is it different from transaction exposure?

Q: Explain the concepts of transaction exposure and translation exposure.

Q: Market screening eliminates: A. undesirable products. B. markets that are judged to be less attractive. C. environmental forces. D. competition. E. two of the above.

Q: Describe the difference between fundamental analysis and technical analysis in forecasting exchange rate movements.

Q: According to the text, market screening is a valuable method to: A. assess the nearly 200 countries to pinpoint the most attractive prospects. B. help domestic firms expand within their home markets. C. help multinational companies avoid missing potential new markets. D. all of the above. E. A and C.

Q: Briefly describe the schools of thought regarding exchange rate forecasting

Q: Environmental scanning is mostly used: A. during the planning process. B. to gather information on market weaknesses. C. to obtain information on opportunities and threats. D. all of the above. E. A and C.

Q: What is the Fisher effect?

Q: _____________ is used by management during the planning process to eliminate the less desirable markets. A. Market screening B. Environmental scanning C. Country screening D. Segment screening E. None of the above

Q: Describe the factors that explain the failure of the purchasing power parity theory to predict exchange rates accurately.

Q: _____________ is used by management during the planning process and provides information about threats and opportunities. A. Market screening B. Environmental scanning C. Country screening D. Segment screening E. None of the above

Q: How does an increase in money supply in an economy lead to inflation?

Q: As humans, it is easier to think of ourselves as market segments that extend across borders than as discrete country segments.

Q: What is meant by a currency swap?

Q: The Internet may eventually allow any firm to have the opportunity to conduct surveys anywhere in the world.

Q: Differentiate between spot exchange rates and forward exchange rates.

Q: General surveys are not done with a specific firm in mind.

Q: Corporate anthropology refers to the process of obtaining market research data through focus groups and surveys.

Q: What is meant by carry trade? Why is it risky? Explain with an example.

Q: How do foreign exchange markets benefit international businesses?

Q: College students may make good interviewers for firms doing market research in foreign countries.

Q: Briefly describe how the creation of a single market through regional economic integration offers significant opportunities. Provide an example.