Chapter 9 emerging markets

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Internationl Marketing MSQ-T/F-Essay Questions

Internationl Marketing MSQ-T/F-Essay Questions

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  • 1. Chapter 9 Emerging MarketsTrue/False Questions 1. China and other emerging markets throughout the world will account for 75 percent of the worlds total growth in the next decade and beyond. Answer: True Page: 244 Difficulty: Easy Type: Fact 2. The standard for making profit is the single most important environmental element to which the foreign marketer must adjust the marketing task. Answer: False Page: 244 Difficulty: Hard Type: Comprehension 3. Capital development is generally understood to mean an increase in national production results that increase in the average per capita gross domestic product. Answer: False Page: 245 Difficulty: Hard Type: Definition 4. In Rostows stages of economic development, the first stage is that of the traditional society. Answer: True Page: 245 Difficulty: Moderate Type: Comprehension 5. With respect to economic development, the most advanced stage (according to Walt Rostow) is one described as being one of high mass consumption. Answer: True Page: 245 Difficulty: Easy Type: Comprehension 6. A good illustration of a MDC (more-developed country) would be Peru. Answer: False Page: 246 Difficulty: Moderate Type: Fact and Comprehension 7. If a country is characterized as being industrially underdeveloped, agrarian, a subsistence society with rural populations, an extremely low per capita income level, and has little world trade involvement, the country would be classified as a LDC (less- developed country). Answer: False Page: 246 Difficulty: Hard Type: Fact and Comprehension 8. One of the “Four Tigers” of Southeast Asia is South Korea. Answer: True Page: 247 Difficulty: Moderate Type: Fact
  • 2. Chapter 9 Emerging Markets 9. One of the factors that exists that helps a NIC (newly industrializing country) to experience economic growth is having a central plan. Answer: True Page: 248 Difficulty: Moderate Type: Comprehension 10. Industrialization is the fundamental objective of most developing countries. Answer: True Page: 250 Difficulty: Easy Type: ComprehensionMultiple Choice Questions 1. China and other emerging markets throughout the world will account for ________ percent of the worlds total growth in the next decade. A) 25 B) 45 C) 50 D) 67 E) 75 Answer: E Page: 244 Difficulty: Hard Type: Fact 2. The __________ level of a country is the single most important environmental element to which the foreign marketer must adjust the marketing task. A) political stability B) entrepreneurial C) economic D) technology E) literacy Answer: C Page: 244 Difficulty: Moderate Type: Comprehension 3. Economic development presents a two-sided challenge. One of these challenges is that the marketer must study: A) the economic models used in foreign countries universities and colleges. B) the mindset of the economic minister of any country to be traded with. C) the state of economic development with respect to market potential. D) the ability to exchange currency and the structure for doing so. E) none of the above. Answer: C Page: 244 Difficulty: Moderate Type: Comprehension
  • 3. Chapter 9 Emerging Markets 4. ___________ development is generally understood to mean an increase in national production that results in an increase in the average per capita gross domestic product (GDP). A) Market B) Export C) Import D) Economic E) Supply Answer: D Page: 245 Difficulty: Moderate Type: Definition 5. _____________, as commonly defined today, tends to mean rapid economic growth and increases in consumer demand. A) Economic development B) Market development C) Supply development D) Export development E) Import development Answer: A Page: 245 Difficulty: Moderate Type: Definition 6. Which of the following people is generally recognized as having developed the best- known model for classifying countries by stage of economic development? A) Milton Friedman B) John Maynard Keynes C) Arthur Laffer D) Walt Rostow E) Yorham “Jerry” Wind Answer: D Page: 245 Difficulty: Hard Type: Fact 7. All of the following would be considered to be recognized stages of the five-stage model presented in the text for classifying countries with respect stage of economic development EXCEPT: A) The abandonment of socialistic structures B) The traditional society C) The preconditions for take-off D) The drive to maturity E) The age of high mass consumption Answer: A Page: 245 Difficulty: Hard Type: Comprehension
  • 4. Chapter 9 Emerging Markets 8. Considering the five-stage model presented in the text for classifying countries with respect stage of economic development, if a country lacks the capability of significantly increasing the level of productivity and has low levels of modern science and technology, the country is in which of the following stages? A) The take-off B) The traditional society C) The preconditions for take-off D) The drive to maturity E) The age of high mass consumption Answer: B Page: 245 Difficulty: Moderate Type: Comprehension 9. Considering the five-stage model presented in the text for classifying countries with respect stage of economic development, if a country achieves a growth pattern that becomes a normal condition and has steady development in agriculture and industrial modernization, the country is in which of the following stages? A) The take-off B) The traditional society C) The preconditions for take-off D) The drive to maturity E) The age of high mass consumption Answer: A Page: 245 Difficulty: Hard Type: Comprehension 10. The final stage of the five-stage model for classifying countries with respect to stage of economic development is one called: A) the take-off. B) the traditional society. C) the preconditions for take-off. D) the drive to maturity. E) the age of high mass consumption. Answer: E Page: 245 Difficulty: Easy Type: ComprehensionFill in the Blank Questions 1. Economic development is generally understood to mean an increase in national production that results in an increase in the average per capita ______________. Answer: GDP (gross domestic product) Page: 245 Difficulty: Moderate Type: Definition 2. The best-known model for classifying countries by stage of _____________ is the
  • 5. Chapter 9 Emerging Markets five-stage model presented by Walt Rostow. Answer: economic development Page: 245 Difficulty: Hard Type: Fact 3. The last stage of Walt Rostows model for classifying countries by stage of economic development is appropriately titled the age of ___________. Answer: mass consumption Page: 245 Difficulty: Moderate Type: Comprehension 4. If a country lacks the capability of significantly increasing the level of productivity, the country is called a ___________ society. Answer: traditional Page: 245 Difficulty: Easy Type: Definition 5. Countries like Canada, England, France, and Germany are called MDCs. MDC stands for ______________. Answer: more-developed countries Page: 246 Difficulty: Moderate Type: Definition 6. Agrarian, industrially underdeveloped, subsistence societies with rural populations are called LLDCs. LLDC stands for ___________. Answer: least-developed countries Page: 246 Difficulty: Hard Type: Definition 7. Countries like Chile, Brazil, Mexico, and South Korea attract trade and foreign direct investment. These countries are called ________________ or NICs. Answer: newly industrialized countries Page: 246 Difficulty: Moderate Type: Application and Fact 8. _____________ is the fundamental objective of most developing countries. Answer: Industrialization Page: 250 Difficulty: Easy Type: Comprehension 9. _____________ represents those types of capital goods that serve the activities of many industries. Answer: Infrastructure Page: 251 Difficulty: Hard Type: Comprehension 10. The country with the most extensive network of roads in the world is ______________. Answer: the United States Page: 252 Difficulty: Easy Type: Fact
  • 6. Chapter 9 Emerging MarketsEssay Questions 1. According to the text, economic development presents a two-sided challenge. What is that challenge? Page: 244 Difficulty: Moderate Type: Comprehension Answer: First, a study of the general aspects of economic development is necessary to gain empathy regarding the economic climate within developing countries. Second, the state of economic development must be studied with respect to market potential, including the present economic level and the economys growth potential. 2. What does the term economic development mean? Page: 245 Difficulty: Moderate Type: Definition Answer: Economic development is generally understood to mean an increase in national production that results in an increase in the average per capita gross domestic product (GDP). 3. List and briefly describe Walt Rostows five stages of economic development that can be used for classifying countries. Page: 245 Difficulty: Hard Type: Comprehension Answer: Stage 1: The traditional society; Stage 2: The preconditions for take-off; Stage 3: The take-off; Stage 4: The drive to maturity; and, Stage 5: The age of high mass consumption. See page 245 for brief descriptions of each stage. 4. Characterize the scheme that characterizes countries as being MDCs, LDCs, or LLDCs. Explain each abbreviation and give an example of a country that might fit in the category. Page: 246 Difficulty: Hard Type: Comprehension Answer: MDCs (more-developed countries) are industrialized countries with high per capita incomes, such as Canada or the United States. LDCs (less-developed countries) are industrially developing countries just entering world trade, have relatively low per capita incomes, and are characterized by many Asian and Latin American countries.
  • 7. Chapter 9 Emerging Markets LLDCs (least-developed countries) are industrially underdeveloped, agrarian, subsistence societies with rural populations, extremely low per capita income levels, and little world trade. Most are found in Central Asia and parts of Asia. 5. Describe and characterize the term infrastructure. Why is it important to world trade? Page: 251-252 Difficulty: Moderate Type: Definition and Comprehension Answer: One indicator of economic development is the extent of social overhead capital, or infrastructure, within the economy. Infrastructure represents those types of capital goods that serve the activities of many industries. Examples would include roads, railroads, seaports, et cetera. For more information see pages 251-252.Application Questions 1. Mark Swift is in the process of deciding whether to make a major commitment or not in the Asian market. If Mark decides to expand into this market it will commit his company for at least ten years. Write a one to two paragraph summary of why Mark should expand into Asia. You may cite product or industry successes to support your contention. Page: 264-265 Difficulty: Moderate Type: Application and Comprehension Answer: Students are free to construct their own paragraphs. There is ample information found on pages 264-265 to support the expansion case. Asia has been the fastest-growing area (even with the financial downturn experienced in the 90s) in for the past three decades. Students might also describe the Four Tigers and their success stories to support their case. If you would like to add additional parameters, please do so. 2. Assume the role of an American businessman or woman that is considering moving a business venture to Vietnam or South Africa. Discuss why or why not this might be wise move. Page: 270-272, Exhibit 9.11 Difficulty: Hard Type: Application and Comprehension Answer: Students are free to create in this question, however, the text supplies ample evidence that both Vietnam and South Africa (once sanctions were lifted) are going to be huge markets in the future. The U.S. Department of Commerce recently designated both markets to be BEMs with respect to U.S. trade. See information in the text on pages 270-272 and facts in Exhibit 9.11 for further information to support such a case.