Exam 13: Global Market Opportunity Assessment

Explain the concept of a global market opportunity, and discuss the key questions to assess a firm's organizational readiness to pursue global market opportunities.

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

In order to estimate industry market potential, managers most likely require ________.

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

Trade as a percentage of GDP is used to measure a country's market receptivity.

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?

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

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

The estimate of the share of annual industry sales the firm expects to generate in a particular target market is known as ________.

Products or services that are well-received at a firm's home country are more likely to be accepted in foreign countries as well.

Describe the two techniques most often used to estimate company sales potential in developing countries and emerging markets. Provide examples to illustrate how each method works.

Natural disasters in foreign countries is one of the reasons for the emergence of potential target markets for selling products and services.

An arrangement in which the firm allows another the right to use an entire business system in exchange for fees, royalties, or other forms of compensation is known as ________.

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

Compare and contrast industry market potential and company sales potential. How is an estimate of industry market potential helpful to managers? What factors are necessary to determine industry market potential?

Which of the following tasks should a shoe manufacturing company perform first if it needs to assess the global market opportunity?

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

With a high percentage of college-educated citizens, countries such as China and India have become a source for international firms seeking knowledge workers.

Which of the following is considered a regional hub?

When assessing the firm's readiness to internationalize, managers peer into their organization to determine the degree to which it has the resources necessary to successfully engage in international business.