Professional Documents
Culture Documents
True / False Questions
True / False Questions
True False
2. By conducting environmental scanning, a firm can monitor the natural resources around
the world that may affect it.
True False
3. In environmental scanning the firm scans the world for environmental forces that might
affect it.
True False
4. Environmental scanning provides the firm with information about world opportunities and
threats.
True False
True False
True False
True False
8. In general, when the basic need for a product is absent, no reasonable expenditure of
effort is likely to enable a firm to market its goods or services.
True False
9. Projections for future dollar value of a product are part of the initial screening.
True False
10. Assessing the basic need potential and foreign trade and investment potential are both
part of the initial screening.
True False
11. Knowing the number of imports to a specific country gives a firm a complete measure of
market potential.
True False
12. Trade flows are good indicators of the magnitude of present sales.
True False
13. Imports to a country can be a good indicator of the potential demand for a new product.
True False
14. During the second screening, analysts are highly concerned with inflation trends,
exchange rates, and interest rates.
True False
15. During the second screening, analysts are highly concerned with inflation rates,
education levels, and entry barriers.
True False
16. Analysis of the paying habits of customers is studied as part of the sociocultural forces
screening.
True False
17. The means of supplying overseas markets—exporting to and production in those markets
—depend on non-equity modes of entry.
True False
18. Entering foreign markets may be described by two levels of involvement: nonequity and
equity-based.
True False
19. Direct exporting is an excellent means of getting a feel for international business without
committing a great amount of human or financial resources.
True False
20. Turnkey projects export technology, management expertise, and capital equipment.
True False
True False
22. Licensing refers to a contractual agreement in which the licensor grants access to its
patents, trade secrets, or technology for a fee paid by the licensee.
True False
23. The licensee generally pays a fixed sum when signing a license agreement and then
royalties over the life of the contract.
True False
24. Some firms grant licenses to other firms in order to reduce the competitive level of a
potential rival, especially in the fashion industry.
True False
True False
26. In a joint venture, a management contract is often used as a non-ownership-based
control mechanism by any of the firms when an agreement cannot be reached.
True False
27. If a firm decides to become involved in overseas manufacturing it has two options: (1)
wholly owned subsidiary and (2) joint venture.
True False
28. When the government of a host country requires companies to have some local
participation, foreign firms must engage in strategic alliances with local owners.
True False
29. Another name for contract manufacturing is "foreign direct investment without
investment."
True False
True False
A. undesirable
products.
C. environmental
forces.
D. competitio
n.
35. Market screening is divided into which of the following:
36. Industry association listings or specialized trade journals are good sources when
conducting
A. economic/financial
screening.
B. competitive
screening.
C. basic needs
screening.
D. sociocultural
screening.
37. The analyst is mostly concerned with which of the following during the second
screening?
C. Market
growth
D. Consumer
profile
38. 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.
39. All of the following are part of the e-commerce readiness index except
C. electricity
consumption.
40. 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.
41. The market growth rate index is measured by
42. Most companies enter a market in stages. Which of the following is not listed in the
textbook as a stage of market entry?
A. Exportin
g
C. A
website
D. Manufacturi
ng
43. 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.
A. Export-oriented
organization
B. State
government
C. Department of
commerce
D. Regional open
markets
45. The final step in the screening process will generally include
A. a field
trip.
C. a cost-benefit
analysis.
D. a visit to a trade
fair.
48. There are several criteria for segmenting markets. Which of the following is not a
criterion for segmenting?
A. Definabl
e
B. Accessibl
e
C. Smal
l
D. Actionabl
e
49. Methods for supplying foreign markets may be summarized in just two activities:
50. Companies wishing to sell internationally with minimal risk usually begin with
A. exporting
directly.
B. local
manufacturing.
D. licensin
g.
51. A turnkey project includes
B. direct
selling.
C. government
training.
B. one firm grants to another the right to use stipulated parts of its
expertise.
B. turnkey
projects.
C. startup
firms
D. domestic
sales.
56. In 2012 to 2013, foreign firms licensing from companies in the United States spent
A. $40
billion.
A. contract
management.
B. licensin
g.
C. contract
manufacturing.
D. joint
venture.
59. The principal ingredient that a franchiser exports is
C. commercial
goods.
A. joint
ventures.
B. licensin
g.
C. franchisin
g.
D. strategic
alliances.
61. According to the text, a management contract is useful for
B. earning money by
branding.
C. turnkey
projects.
62. Hilton and Delta provide assistance to other international companies, an example of
A. a joint
venture.
B. a management
contract.
C. a strategic
alliance.
D. contract
manufacturing.
63. International firms employ contracted manufacturing
64. Although there are many forms of strategic alliances, the alliances are often between:
B. exporters and
importers.
C. arbitratio
n.
A. the fifth
screening.
D. joint
ventures.
67. Imports
A. climate and
topography.
B. export
availability.
C. consumption
rates.
D. sample
availability.
D. by examining product
substitutions.
A. import
levels.
B. standard of
living.
C. disposable
income.
D. xenophobic
indices.
76. Most _____________ are familiar with market factors for specific markets.
A. marketing
researchers
B. tax
authorities
C. university marketing
professors
D. business
owners
77. _____________ uses market data to estimate future values.
A. Trend
analysis
B. A least developed
organization
C. A
licensee
D. Market
segmentation
A. cluster
analysis
B. trend
analysis
C. retrograde statistical
analysis
B. marketing
force.
C. sustainability
force.
D. cultural
force.
83. Political stability and policy stability
A. are not synonymous. Policy stability is important; political stability may be of lesser
importance.
88. The field trip report often provides the final data for the decision, but may
A. country and
segment.
B. country and
region.
C. segment and
market.
D. region and
market.
C. is understood by the
client.
D. relies on lifestyle
differences.
B. communicating in a shared
language.
C. willing to be contacted by
researchers.
D. is open to product
modification.
95. With segment screening it may be a good idea to
C. an industry-wide
holiday.
D. an event for the exchange of marketing materials and approaches among members of
an industry.
A. language issues within the market and between the researcher and the
market members.
B. undependable electrical
power.
B. the desire to be accepted as a foreigner in the local setting, so assuming local dress
and mannerisms.
C. the desire to become part of the social in-group in the new setting, with
high status.
D. a bias in favor of those locals who pretend to like and accept the
researcher.
101 Online research communities are
.
D. a loosely connected collaboration of local researchers who will collaborate with major
marketing companies in their home markets.
102 In Asia, mobile application users (smartphones, iPads) in online research communities
. showed
D. promote shopping at
home.
104 That culture does not always stand in the way of market entry is illustrated by
.
A. Starbucks' success in
China.
C. avoid employing
locals.
C. subsidiaries and
franchising.
D. a publically held
company.