Going global (International Markets)

Which global market entry strategy involves minimal risk and investment for the entering company?

• a) Exporting
  

• b) Joint ventures
  

• c) Greenfield investments
  

• d) Wholly-owned subsidiaries

What does "tariff" refer to in the context of international trade?

• a) A tax imposed on imports or exports
  

• b) A limit on the quantity of goods that can be imported
  

• c) A type of financial subsidy given to domestic industries
  

• d) A standard for quality assurance

Which analytical tool is most useful for understanding competitive intensity in a market?

• a) SWOT Analysis
  

• b) Porter's Five Forces
  

• c) PEST Analysis
  

• d) Ansoff Matrix

Which of the following describes a "joint venture"?

• a) A form of market entry where two companies collaborate to create a new business entity
  

• b) A contractual agreement where a firm allows another to use its brand and products
  

• c) A method of direct investment involving 100% ownership by the parent company
  

• d) A licensing agreement where a company exports its goods

When analyzing consumer behavior in a foreign market, which factor is least likely to be important?

• a) Local purchasing power
  

• b) Local cultural norms and values
  

• c) The company's internal HR policies
  

• d) Competitor presence in the market

Which of the following best describes "market segmentation"?

• a) Analyzing overall economic indicators of a country
  

• b) Dividing a broad consumer or business market into sub-groups based on shared characteristics
  

• c) Creating a new product for an existing market
  

• d) Setting up joint ventures with local companies

Which market entry strategy involves a company setting up production facilities in a foreign country?

• a) Exporting
  

• b) Licensing
  

• c) Foreign Direct Investment (FDI)
  

• d) Franchising

What is the purpose of conducting a PEST analysis in the context of global market opportunities?

• a) To evaluate internal strengths and weaknesses
  

• b) To assess potential environmental hazards
  

• c) To analyze Political, Economic, Social, and Technological factors
  

• d) To determine the profitability of a product

What is one major risk associated with entering a new international market?

• a) Increased brand recognition
  

• b) Access to a broader customer base
  

• c) Political instability
  

• d) Enhanced competitive advantage

Which of the following is NOT a factor to consider when analyzing global market opportunities?

• a) Economic stability of the target market
  

• b) Cultural preferences and consumer behavior
  

• c) Domestic political affiliations
  

• d) Legal and regulatory environment