Exam 12: Global Market Opportunity Assessment

Which of the following is a primary question to ask when attempting to determine a product's potential in a foreign market?

Describe the various types of partners an international firm might adopt when expanding internationally. How can a business partner affect a company's sales potential?

________ refers to a cross-border business alliance whereby partnering firms pool their resources and share costs and risks to undertake a new business venture.

A SWOT analysis is used to estimate company sales potential for each target market.

The size and growth rate of a country's middle class is termed as ________.

By monitoring key industry-specific indicators, a manager can estimate industry market potential.

A favorable global market opportunity for a firm would most likely lead to ________.

Even if a firm is confident of its product being sold, it still needs to analyze who initiates the purchase.

Which of the following is considered a regional hub or gateway country?

All You Cosmetics (Scenario) Executives of All You Cosmetics Company, a Canadian company, have hired a consulting firm, Brown and Associates, to identify foreign markets that might be appropriate for internationalization. Brown consultants have been working for two weeks with All You managers to identify the best foreign markets for the Canadian cosmetics company, which specializes in organic cosmetics and skin care products. So far, Brown consultants have narrowed down the list of countries to fifteen. However, the consultants need to eliminate unattractive markets and reduce the list to five nations, which will then be researched more closely. -Which of the following would most likely be useful market data for the Brown consultants?

Describe the two methods typically used to screen potential foreign markets for exporting: gradual elimination and indexing and ranking.

Market consumption capacity is the proportion of a country's population concentrated in cities.

Industry market potential is identical to company sales potential.

Countries appropriate for firms intending to use FDI as an entry strategy should exhibit a potential for long-term growth with limited political risk.

Which of the following tasks is the final stage of assessing the global market opportunities of a firm?

Assessing a firm's readiness to internationalize and suitability of its products and services for foreign markets occurs in the final stage of the global market opportunity assessment process.

Which of the following is management's goal when utilizing gradual elimination?

One of the goals that firms most likely want to attain from internationalizing is ________.

Explain why it is especially critical for a firm to select the most appropriate market for its product or service during the primary stage of internationalization. What are the negative consequences of making a poor market selection for firms planning to globalize through FDI?

A researcher who assigns scores to countries for their overall market attractiveness uses ________ to choose the most promising foreign markets.