Question 1

Which of the following is a step in the market entry decision process?

Accepted Answer

Reviewing the mode of entry is a crucial step in the market entry decision process. It involves evaluating whether the chosen method of entering a new market (e.g., exporting, franchising, joint venture, direct investment) aligns with the company's external factors and internal objectives. This step is essential for ensuring that the strategy is feasible and has the potential for success.

Question 2

The four-step procedure that can be employed for the initial screening process includes all of the following except:

Accepted Answer

Analyzing parallel strengths and weaknesses of the market is not typically described as a step in the initial screening process for international market selection. The process usually involves selecting indicators, determining their importance, rating countries based on these indicators, and computing overall scores to compare potential markets.

Question 3

Markets can be classified in five types of countries based on their respective market attractiveness.Vietnam and the Philippines would fall into which of the types listed below (where the purpose would be to build up an initial presence such as through a liaison office)?

Accepted Answer

Vietnam and the Philippines are considered emerging countries due to their developing economic structures, growing market potential, and increasing attractiveness for foreign investment aimed at tapping into local and regional markets.

Question 4

In the mode of entry, some companies see liaison office as a low-cost _____.

Accepted Answer

A liaison office acts as a "listening post," providing a company with insights into the local market without the need for a significant investment like those required for joint ventures or alliances.

Question 5

In global market entry, all of the following are entry decisions that must be made by management before entering an international market except:

Accepted Answer

Deciding on the target budget is not typically considered a primary entry decision in the context of entering an international market. The other options are key strategic decisions that need to be made.

Question 6

MetLife, the insurance company, opened a liaison office in Shanghai and Beijing while it was waiting for permission from the Chinese government to start operations.This is an example of dealing with_____ in markets.

Accepted Answer

MetLife's decision to open liaison offices in Shanghai and Beijing while awaiting permission from the Chinese government to start operations is an example of dealing with government risk. This shows the company's strategy to navigate regulatory approvals and establish a presence in a new market despite the uncertainties and challenges posed by government regulations.

Question 7

The _____ of a market refers to the country's distribution system, transportation network, and communication system.

Accepted Answer

The answer of The _____ of a market refers to...

Question 8

Markets can be classified in five types of countries based on their respective market attractiveness.Which of the following of those types can be used to build up an initial presence (such as through a liaison office)?

Accepted Answer

The answer of Markets can be classified in five types...

Question 9

When marketers are making the decision to enter an international market or not, the first step is generally to:

Accepted Answer

Deciding on the target product/market is typically the first step in the process of entering an international market, as it sets the direction for all subsequent decisions, including market goals, entry mode, budget, and timing.

Question 10

Markets can be classified in five types of countries based on their respective market attractiveness.Which of the following countries would most likely be listed as a maturing/established market?

Accepted Answer

Taiwan is considered a maturing/established market due to its developed economy, stable political environment, and advanced technological infrastructure. Unlike emerging markets like China, India, Vietnam, and frontier markets like Burma, Taiwan has a more stable and mature economic landscape.

Question 11

Markets can be classified in five types of countries based on their respective market attractiveness.All of the following are part of the classification scheme except:

Accepted Answer

The classification scheme for markets based on their attractiveness typically includes platform countries, emerging countries, growth countries, and maturing and established countries. "Low-tech countries" is not a standard category in this classification scheme.

Question 12

A variety of reasons that may cause a positive relationship between entry scale and post-entry performance.Which is not a reason?

Accepted Answer

D is not a reason for a positive relationship between entry scale and post-entry performance because it focuses on the actions of existing competitors in the entrant's country of origin, which does not directly relate to the advantages or performance of the entering company in the new market.

Question 13

When Colgate-Palmolive sees prospects in countries with purchasing power as a major driver behind market opportunities and Coca-Cola looks at per capita income and the number of minutes that it would take someone to work to be able to afford a Coca-Cola product, they are following which of the following steps of the initial screening process for market entry?

Accepted Answer

Indicator selection and data selection are the steps being described, as both companies are selecting specific economic indicators (purchasing power, per capita income, and affordability in terms of work minutes) and gathering data on them to assess market opportunities.

Question 14

Which of the following most accurately describes a critical initial step in the market entry decision process?

Accepted Answer

Deciding on the strategic objectives that align with the company's global mission is a critical initial step in the market entry decision process. This helps in setting a clear direction and purpose for entering a new market, ensuring that the entry supports the overall goals of the organization.

Question 15

When Coca-Cola looks at per capita income and the number of minutes that it would take for somebody to work to be able to afford a Coca-Cola product, the company is following which of the following steps of the initial screening process for market entry?

Accepted Answer

This approach involves selecting specific economic indicators (per capita income) and other relevant data (minutes of work needed to afford a product) to assess the potential of a market for entry. This is part of the indicator selection and data collection step in the initial screening process for market entry.

Question 16

The goals of a preliminary screen to determine market opportunities are to minimize mistakes of ignoring countries that offer viable opportunities for the product and:

Accepted Answer

The preliminary screen aims to efficiently identify countries with potential for market opportunities, thus avoiding the waste of resources on markets with little or no potential.

Question 17

Markets can be classified in five types of countries based on their respective market attractiveness.Hong Kong and Singapore would fall into which of the types listed below (where the purpose would be to gather intelligence and establish a network)?

Accepted Answer

Hong Kong and Singapore are considered platform countries due to their strategic locations, advanced infrastructure, and business-friendly environments, making them ideal for gathering intelligence and establishing networks.

Question 18

To identify market opportunities for a given product or service, the international marketer usually starts off with a large pool of candidate countries.To narrow down this pool, the company will typically do a(n) _____.

Accepted Answer

A preliminary screen helps the company to filter through the large pool of candidate countries by evaluating them against a set of predetermined criteria, effectively narrowing down the options to those that are most promising for the given product or service.

Question 19

A four-step procedure that can be employed for the initial screening process includes the following except:

Accepted Answer

Running a marketing mix evaluation is not typically part of the initial screening process for selecting countries for international expansion. The initial screening usually involves selecting indicators, determining their importance, rating countries based on these indicators, and computing an overall score to assess potential markets. A marketing mix evaluation is more detailed and would likely occur in a later stage of market selection.

Question 20

Markets can be classified in five types of countries based on their respective market attractiveness.Which of the following of those types can be used to gather intelligence and establish a network?

Accepted Answer

Platform countries are used to gather intelligence and establish a network due to their strategic location and infrastructure that facilitate business operations and market entry.

Quiz 9: Global Market Entry Strategies