IBUS 482 exam 2 questions with 100% verified answers solutions guaranteed.

Economic Development ... - correct answers is the increase in the economic well-being, quality of life, and general welfare of a nation's people. National Production - correct answers Marketers often use GDP per capita and GNP per capita to determine if a country's population is wealthy enough to begin purchasing their products. Gross Domestic Product - correct answers GDP is a measure of the goods and services produced in a country in a specific time period (e.g., quarter, year, etc.) Gross National Product - correct answers GNP is a measure of the goods and services produced by residents of a country in a specific time period (e.g., quarter, year, etc.) GDP or GNP per capita - correct answers A nation's GDP or GNP divided by its population. Drawbacks - correct answers Although GDP per capita and GNP per capita are popular measures, they have several drawbacks. PPP & HDI - correct answers Purchasing Power is the value of goods and services that can be purchased with one unit of a country's currency. Economic Transition - correct answers Process by which a nation changes its fundamental economic organization and creates new free-market institutions. Economic transition typically involves - correct answers Stabilizing the economy, reducing budget deficits, and expanding credit availability. Political Risk... - correct answers is the likelihood that a society will undergo political change that negatively affects local business activity. Lobbying - correct answers Bribery (US Foreign Corrupt Practices Act 1977) International Relations - correct answers Although it is governments that are directly responsible for managing international relations, the actions of businesses can cause relations to improve or worsen. In the big picture, managers play a key role in economic development. Market and Site Screening Process - correct answers Managers are concerned with two important issues when examining potential new markets and new sites for operations. Step 1 (Identify Basic Appeal) - correct answers Markets and sites that don't meet a company's requirements for basic demand or resource availability in this step are removed from further consideration. Transportation costs (logistics) & country image. - correct answers Step 3 (Measure Market or Site Potential) Data readily available - correct answers Necessary to forecast market demand (product's income elasticity) Emerging markets - correct answers Biggest emerging markets are more important today than ever Market Potential Indicators - correct answers Market size, market growth rate, market intensity, market consumption capacity, commercial infrastructure, economic freedom, market receptivity, and country risk. Local infrastructure - correct answers Roads, bridges, airports, seaports, telecommunication systems, etc. Competitor Analysis - correct answers Number of competitors in each market (domestic & international) Market share of each competitor - correct answers Whether each competitor's product appeals to a small market segment or has mass appeal Industry trade associations - correct answers National Pasta Association, Washington Apple Commission, etc. Service organizations - correct answers Ernst & Young, McKinsey & Company, etc. Availability of Data - correct answers Information is hard to obtain in emerging and developing nations. Comparability of Data - correct answers Terms differ greatly from one country to another. Mission - organized by provincial governments - correct answers Use of written or verbal questions to obtain facts, opinions, or attitudes Important aspects of importing and exporting. - correct answers Key influencers for import and export decisions. Multinational vs. Global Strategy - correct answers Companies engaged in international business activities can approach the market using either a multinational or a global strategy. Multinational means adapting products based on local market, Global strat focuses on standardization The Exporter "Must Do" List - correct answers Gain in depth understanding of the target market. After-sales service - correct answers Product discontinuation, parts availability, product repair, etc. Government Influence on Trade - correct answers Governments have long intervened in the trade of goods and services for political, economic and cultural reasons. Licensing - correct answers Licensing is the practice by which one company owning intangible property (the licensor) grants another firm (the licensee) the right to use that property for a specific period of time. Advantages - correct answers- Licensing can be used to finance international expansion. - It reduces international expansion risks. -It reduced the likelihood of counterfeit production. Licensing disadvantages - correct answers- It may reduce the global consistency of product's quality and marketing. - Licensing may restrict licensor's future activities. Franchising - correct answers Franchising is the practice by which one company (the franchiser) supplies another (the franchisee) with intangible property and other assistance over an extended period. Advantages - correct answers-Franchising is a low-cost and low-risk entry mode into new markets. -It allows for rapid geographic expansion. -It makes use of local managers' cultural knowledge. Disadvantages - correct answers Managing franchisees across several nations can become cumbersome. Management Contracts - correct answers Management Contract is the practice by which one company supplies another with managerial expertise for a specific period of time. Advantages - correct answers-Management contract doesn't expose a great deal of company's physical assets to risk. -Nations can finance projects. - develop the skills of local workers and managers. Disadvantages - correct answers Political or social turmoil in a nation can threaten managers' lives. Turnkey Projects - correct answers Turnkey (build-operate-transfer) project is the practice by which one company designs, constructs, and tests a production facility for a client firm. Advantages - correct answers Turnkey projects let a firm specialize in its core competency to exploit international opportunities. Disadvantages - correct answers Turnkey projects may be awarded for political reasons instead of technical know-how. Investment Entry Modes - correct answers Investment Entry Modes entail direct investment in plant and equipment in a country along with ongoing involvement in the local operation. Wholly Owned Subsidiaries - correct answers Wholly owned subsidiaries are facilities that are entirely owned and controlled by a single parent company. Advantages - correct answers Wholly owned subsidiaries give managers complete control over day-to-day operations in the target market and access to valuable technologies, processes, and other intangible properties. Disadvantages - correct answers Wholly owned subsidiaries can be expensive undertakings. Joint Ventures - correct answers A joint venture is a separate company that is created and jointly owned by two or more independent entities to achieve a common business objective. Advantages - correct answers Joint ventures can reduce risk by sharing investments with other parties. Disadvantages - correct answers Joint ventures can result in conflict between partners. Strategic Alliances - correct answers Strategic Alliance is a relationship whereby two or more entities cooperate (but do not form a separate company) to achieve the strategic goals of each. Advantages - correct answers Strategic alliances can allow firms to share the cost of an international investment project. Disadvantages - correct answers- Alliances may create future competitors in a target market or even globally. - Conflict amongst partners may undermine cooperation.