CGMS 723 Quiz 1 with Correct
Answers 100% PASS
Domestic Market - CORRECT ANSWER-The market which the company's
headquarters is located and that it continues to serve with its products and services.
International Market - CORRECT ANSWER-A Market located outside a
company's domestic market which derives demand form the company's products
and services
5 Levels of International Business Transactions - CORRECT ANSWER-Level 1-
Accidental Exporting
Level 2- Active Exporting
Level 3 - International Marketing
Level 4 - International Marketing and Limited Operations
Level 5 - Foreign Direct Investment (FDI)
Accidental Exporting - CORRECT ANSWER-- First level of International
Business Transactions, lowest level of risk
- act of producing products/services to be sold within domestic market, but
demand is derived in the international market.
,Active Exporting - CORRECT ANSWER-- Second level of International Business
Transactions
- act of producing product/services to meet demand in 1 or more international
markets
- Main activity is to buy product for export market and distribution
- Good knowledge and relationship with custom brokers and host government
regulation
International Marketing - CORRECT ANSWER-- Third level of International
Business Transactions
- the business activity described in Level 2, as well as the decision by management
to move its international marketing function out of the domestic market and in (or
closer to) the international market it serves through active exporting activities.
- Marketing function will encompass decisions of the marketing mix's "P's"
(product, price, promotion, place, packaging, positioning and people) for
marketing and market entry strategies. These will be dispensed from the
international location.
International Marketing and Limited Operations - CORRECT ANSWER-- Fourth
level of International Business Transactions
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, -Includes all activities of level 3, plus limited warehousing/final assembly
operations
In this level, a company is choosing to offer sales support for customers in the
international market or it is producing inventory to meet expected future demand.
This level is best suited for companies who serve markets with predictable seasonal
demand.
Seldom chosen as a means of international business. Most companies shift directly
from level 3-5 (i.e. International marketing to Foreign Direct Investment)
Foreign Direct Investment (FDI) - CORRECT ANSWER-- Fifth level of
International Business Transactions (highest risk, highest expected return)
- the investing of people, resources, proprietary tech/processes, money, and assets
into an international market and replication of the corporation's structure in a
foreign market (setting up a foreign division or head office). This is the sole
advantage of a Multinational Enterprise (MNE)
- Companies engaged in this level will have suppliers from around the globe to
produce products/services for the international markets.
International Trade - CORRECT ANSWER-- an exchange of capital, goods
and/or services across international borders or territories.
- represent a significant portion of GDP
Answers 100% PASS
Domestic Market - CORRECT ANSWER-The market which the company's
headquarters is located and that it continues to serve with its products and services.
International Market - CORRECT ANSWER-A Market located outside a
company's domestic market which derives demand form the company's products
and services
5 Levels of International Business Transactions - CORRECT ANSWER-Level 1-
Accidental Exporting
Level 2- Active Exporting
Level 3 - International Marketing
Level 4 - International Marketing and Limited Operations
Level 5 - Foreign Direct Investment (FDI)
Accidental Exporting - CORRECT ANSWER-- First level of International
Business Transactions, lowest level of risk
- act of producing products/services to be sold within domestic market, but
demand is derived in the international market.
,Active Exporting - CORRECT ANSWER-- Second level of International Business
Transactions
- act of producing product/services to meet demand in 1 or more international
markets
- Main activity is to buy product for export market and distribution
- Good knowledge and relationship with custom brokers and host government
regulation
International Marketing - CORRECT ANSWER-- Third level of International
Business Transactions
- the business activity described in Level 2, as well as the decision by management
to move its international marketing function out of the domestic market and in (or
closer to) the international market it serves through active exporting activities.
- Marketing function will encompass decisions of the marketing mix's "P's"
(product, price, promotion, place, packaging, positioning and people) for
marketing and market entry strategies. These will be dispensed from the
international location.
International Marketing and Limited Operations - CORRECT ANSWER-- Fourth
level of International Business Transactions
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, -Includes all activities of level 3, plus limited warehousing/final assembly
operations
In this level, a company is choosing to offer sales support for customers in the
international market or it is producing inventory to meet expected future demand.
This level is best suited for companies who serve markets with predictable seasonal
demand.
Seldom chosen as a means of international business. Most companies shift directly
from level 3-5 (i.e. International marketing to Foreign Direct Investment)
Foreign Direct Investment (FDI) - CORRECT ANSWER-- Fifth level of
International Business Transactions (highest risk, highest expected return)
- the investing of people, resources, proprietary tech/processes, money, and assets
into an international market and replication of the corporation's structure in a
foreign market (setting up a foreign division or head office). This is the sole
advantage of a Multinational Enterprise (MNE)
- Companies engaged in this level will have suppliers from around the globe to
produce products/services for the international markets.
International Trade - CORRECT ANSWER-- an exchange of capital, goods
and/or services across international borders or territories.
- represent a significant portion of GDP
