Question 1

Swiss Pharmaceuticals is considering entering the Indian market.Which of the following is the best macroindicator for the firm to look at?

Accepted Answer

A) Number of physicians 
B) Number of pharmacies 
C) Total population 
D) None of the above is a macroindicator

Question 2

Triad nations are very attractive to global companies due to their

Accepted Answer

A) low GDP. 
B) protectionist trade environment. 
C) importance to global competitive battles. 
D) All of the above

Question 3

In order to increase employment opportunities,Singapore offers government incentives to foreign investors in heavy industries such as steel.

Accepted Answer

A) True 
 B)False

Question 4

Firms that recognize from the beginning that their customers and competition are international are called ____ firms.

Accepted Answer

A) internationalized 
B) globalized 
C) multi-domestic 
D) born global

Question 5

Which of the following countries would likely be grouped together for marketing operations?

Accepted Answer

A) Georgia and Armenia 
B) India and Pakistan 
C) France and Germany 
D) Brazil and Nigeria

Question 6

Starbucks is investigating entering a Middle East market with its upscale coffee shops.Which of the following would be the best microindicator for the firm to look at?

Accepted Answer

A) Total population 
B) Income distribution 
C) Population growth 
D) Tourist arrivals

Question 7

Cemex,the largest cement producer in Mexico,

Accepted Answer

A) is an insignificant competitor outside its home market. 
B) has only expanded into Spanish-speaking markets. 
C) generates about half of its income from outside Mexico. 
D) was eventually acquired by Holder Bank of Switzerland after Holder Bank entered the Mexican market.

Question 8

Marketing cost savings from geographic proximity is one advantage of a market group.

Accepted Answer

A) True 
 B)False

Question 9

Opportunistic expansion occurs when a firm becomes involved in foreign markets due to

Accepted Answer

A) market research. 
B) competitive attacks on its home market. 
C) government subsidies. 
D) unsolicited orders from abroad.

Question 10

Ottawa Sleds is a Canadian company.Managers at the firm are believers in psychic distance.Ottawa Sleds is seeking its first foreign market to enter.Which of the following countries will the firm likely choose first to enter?

Accepted Answer

A) Sweden 
B) Germany 
C) U.S. 
D) There is no way to tell.

Question 11

ABC Autos is investigating India as a potential globally attractive market.Which of the following would be a reason to avoid India?

Accepted Answer

A) High competition 
B) High growth 
C) Large size 
D) None of the above

Question 12

Swiss Pharmaceuticals is considering entering the Indian market.Which of the following is the best microindicator for the firm to look at?

Accepted Answer

A) Number of physicians 
B) Total population 
C) Population growth rate 
D) None of the above is a microindicator

Question 13

Triad nations are very attractive to global companies due to their

Accepted Answer

A) low GDP. 
B) protectionist trade environment. 
C) importance to global competitive battles. 
D) None of the above

Question 14

National proximity is the name of the phenomenon when managers believe that success in the home market is more easily transferable to markets similar to the one in which they currently compete.

Accepted Answer

A) True 
 B)False

Question 15

BRICK is a trading association including Brazil,Russia,India China,and South Korea.

Accepted Answer

A) True 
 B)False

Question 16

Which country is not part of the triad?

Accepted Answer

A) Japan 
B) Belgium 
C) Brazil 
D) France

Question 17

Born global firms show a propensity to enter national markets that are more similar to their home markets.

Accepted Answer

A) True 
 B)False

Question 18

Psychic distance refers to

Accepted Answer

A) how similar two national markets really are. 
B) how similar managers believe two national markets to be. 
C) how similar two competitors are. 
D) the sum total of differences among markets where a multinational firm operates.

Question 19

In developing countries,higher risks are often compensated by higher returns,because competition is often less intense in these markets.

Accepted Answer

A) True 
 B)False

Question 20

Developed economies attract many multinational companies because they account for a disproportionately large share of the world's gross national product.

Accepted Answer

A) True 
 B)False

Exam 8: Global Market Participation

Swiss Pharmaceuticals is considering entering the Indian market.Which of the following is the best macroindicator for the firm to look at?

Triad nations are very attractive to global companies due to their

In order to increase employment opportunities,Singapore offers government incentives to foreign investors in heavy industries such as steel.

Firms that recognize from the beginning that their customers and competition are international are called ____ firms.

Which of the following countries would likely be grouped together for marketing operations?

Starbucks is investigating entering a Middle East market with its upscale coffee shops.Which of the following would be the best microindicator for the firm to look at?

Cemex,the largest cement producer in Mexico,

Marketing cost savings from geographic proximity is one advantage of a market group.

Opportunistic expansion occurs when a firm becomes involved in foreign markets due to

Ottawa Sleds is a Canadian company.Managers at the firm are believers in psychic distance.Ottawa Sleds is seeking its first foreign market to enter.Which of the following countries will the firm likely choose first to enter?

ABC Autos is investigating India as a potential globally attractive market.Which of the following would be a reason to avoid India?

Swiss Pharmaceuticals is considering entering the Indian market.Which of the following is the best microindicator for the firm to look at?

Triad nations are very attractive to global companies due to their

National proximity is the name of the phenomenon when managers believe that success in the home market is more easily transferable to markets similar to the one in which they currently compete.

BRICK is a trading association including Brazil,Russia,India China,and South Korea.

Which country is not part of the triad?

Born global firms show a propensity to enter national markets that are more similar to their home markets.

Psychic distance refers to

In developing countries,higher risks are often compensated by higher returns,because competition is often less intense in these markets.

Developed economies attract many multinational companies because they account for a disproportionately large share of the world's gross national product.