Tutorial Questions (1).docx

The internet and network computing enable small

  • No School
  • AA 1
  • 8

This preview shows page 4 - 7 out of 8 pages.

enabling customers to learn about foreign goods. The internet and network computing enable small companies to compete globally because they make possible the rapid flow of information regardless of the physical location of the buyer and seller.
Image of page 4

Subscribe to view the full document.

Advances in computer based communications are allowing virtual integration, which permits firms to become more physically fragmented as they search the world for lower-cost inputs. Cost drivers: going abroad, whether by exporting or by producing overseas, can frequently lower the costs of goods sold, Another factor than can positively affect the cost of goods sold is the inducements – such as reduced taxes or subsidies for research and development – that some governments offer to attract new investment 3. Describe Market Screening as a method for assessing international markets by i) identifying its phases; and ii) describing what each screening phase deals with. (10 marks – 1 mark for each market screening phase correctly identified and in the right order; 1 mark for each correct explanation of a screening phase) Market screening is an application of environmental scanning in which the firm identifies markets by using analysis of the environmental forces active in markets to eliminate the less desirable ones. Basic needs screening: An initial screening based on the basic need potential is the logical first step because if the need for goods and services is lacking, no reasonable expenditure of effort and money will enable the firm to successfully market goods for which there is no need potential. Economic/Financial Screening: The major areas of concern here are trends in inflation, currency exchange rates, and interest rates. Financial factors such as credit availability, paying habits of consumers and rates of return on similar investments are also important. Market demand, market factors, trend analysis and cluster analysis may be used to estimate demand Political/Legal Screening: Barriers to entry, government controls, stability of government policy and political stability. Sociocultural screening: First the recognition of cultural factors is a fairly subjective and interpretive process. Must rely on perceptions and opinions of others (if not from the country) Competitive Screening: examine markets on the basis of competitive forces such as: The number, size, and financial strength of the competitors Their market shares Their marketing strategies The quality levels of their product lines Their pricing policies Their distribution channels Final selection of new markets: No substitute for personal visits to the markets that appear to have the best potential. The field trip report will provide the final data for the decision. 4. Differentiate between developed and developing economies by describing 5 characteristics of each. (10 marks) Developed Economies Developing Economies
Image of page 5
Per capita GNI of $12.746 or more Per capita GNI of less than $12.746 Frequent application of the most advanced production techniques and equipment Technology dualism: the presence of a mix of firms employing the latest technology and companies using very primitive methods Well-established governmental an legal systems Political instability and deficient government and legal systems
Image of page 6

Subscribe to view the full document.

Image of page 7
  • Fall '19
  • Economics, Developed country, GNI,  Competitive

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern