Chat with AIExam 13: Global Market Opportunity Assessment
Discuss four macroeconomic trends that have the potential to significantly alter the current status of international business and trade.
(78) 
Verifieda. Global and regional shift of centers of economic activity-Due to economic liberalization, technological advances, capital market developments and demographic shifts, the locations of global economic activities are shifting. Today, Asia accounts for more than 35 percent of world GDP, exceeding the United States and Europe.
b. More consumers, especially in the developing economies-Almost a billion new consumers will enter the global marketplace through 2015 as economic growth in emerging markets pushes them beyond the threshold level of $5,000 in annual household income, a point where people begin to spend on discretionary goods. In 2013, consumer's spending power in emerging economies will have reached $10 trillion, nearly the current spending power of the Europezone countries in Europe.
c. Growing demand for natural resources-As economic growth accelerates, especially in emerging markets, use of natural resources will grow at unprecedented rates. In China, demand for copper, steel, and aluminum has tripled in recent years, suggesting new opportunities for mining companies.
d. Widespread access to information-Knowledge is increasingly available to people worldwide. For instance, the rise of search engines such as Google makes seemingly limitless information instantly available. Knowledge production itself is growing. For example, worldwide patent applications have been rising at 20 percent annually.
Screening countries to identify target markets is the most time-consuming step for most firms.
(69) VerifiedTrue
According to the A.T. Kearney 2012 Foreign Direct Investment Confidence Index, investors have the highest confidence in ________.
(82) VerifiedD
Which of the following tasks should be performed directly before a company, that is assessing the global market opportunity, estimates its sales potential?
(77) 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 statements most likely supports using gradual elimination for country screening instead of indexing and ranking?
(78) Which of the following questions needs to be addressed by managers to determine the organizational readiness to internationalize?
(83) Indexing and ranking is the only way to choose markets that offer the best profits.
(75) Industry market potential is identical to company sales potential.
(83) Advances in communications and transportation technology have changed the internationalization tendencies of firms by ________.
(77) A SWOT analysis is used to estimate company sales potential for each target market.
(69) As long as a firm is confident of its product being sold, it does not need to analyze who initiates the purchase.
(88) Which of the following tasks is the final stage of assessing the global market opportunities of a firm?
(74) Australian Business Partner (Scenario)
The Coffee Cup Corporation (CCC) is a large U.S.-based coffee retailer with stores across America. After months of research, CCC executives have decided to open their first international store in Sydney, Australia. CCC managers have been assigned the task of selecting an appropriate Australian business partner for the coffee company. CCC managers flew to Sydney to interview potential business partners, and they have narrowed the list to three.
-All of the following are criteria most likely established by CCC managers for choosing the best foreign business partner EXCEPT ________.
(83) Describe the two methods typically used to screen potential foreign markets for exporting: gradual elimination and indexing and ranking.
(82) Born-global companies seldom venture into countries outside their comfort zone.
(67) The "BRIC" countries show the least potential as target markets in the near future.
(84) The term industry market potential can best be defined as the ________.
(81) Which of the following market characteristics offers the most potential for a firm's success at internationalization?
(86) Tapping into supplier networks is one of the methods of estimating industry market potential.
(83) ________ is used by some firms to gauge long-term sales potential without fully committing to a foreign market.
(80) 
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