International Business A Managerial Perspective

Business

Quiz 12 :

Strategies for Analyzing and Entering Foreign Markets

Quiz 12 :

Strategies for Analyzing and Entering Foreign Markets

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What is the difference between direct costs and opportunity costs?
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Direct costs are those the firm incurs in entering a new foreign market and include costs associated with setting up a business operation. Opportunity costs are the costs of missing other opportunities by virtue of entering one market rather than another.

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Which of the following are potential benefits of entering a new market?
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C

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Describe the basic components of foreign market analysis.
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Most international businesses have the fundamental goals of expanding market share, revenues and profits. Firms must normally follow three steps: (1) assess alternative markets, (2) evaluate the respective costs, benefits, and risk of entering each, and (3) select those that hold the most potential for entry or expansion.

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Which of the following is the least effective indicator of a country's potential for economic growth?
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________ refer to expenses incurred by the firm as it enters a new foreign market.
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Assessing market potential is the second step in the process of foreign market analysis.
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Trade policies usually have little effect on a firm's choice of entry mode.
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Which of the following is not one of the three steps in increasing market share, revenue, and profits?
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A firm specializing in high-priced, higher-quality goods will most likely find a high-income market more attractive than a low-income one.
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Firms should use both objective and subjective measures when considering the potential for growth in an economy.
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Government stability is an important factor in foreign market assessment.
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Direct costs are those the firm incurs in entering a new market and include costs associated with setting up a business operation.
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Sub-Saharan Africa accounts for ________ of world GDP.
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Which theory listed below is useful in deciding which mode of entry to use when entering foreign markets?
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Gameware recently entered the German market. Gameware incurred significant costs associated with setting up a business operation in Frankfurt, transferring managers to Germany, and shipping equipment to the German facility. Gameware's expenses are best described as ________.
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Gameware recently entered the German market. Gameware executives also wanted to enter the Canadian market but had to delay the entry because of limited resources. What type of costs will Gameware incur as a result of being unable to enter the Canadian market?
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Firms can reduce the uncertainty associated with sociocultural influences by focusing their internationalization efforts in countries that are culturally similar to their own.
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What is the first step in selecting a foreign market?
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What are the five primary types of entry modes for foreign markets? What types of risks should international firms consider before entering a foreign market?
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What are the steps involved in foreign market analysis?
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