BUSI 3250 Exam 3 Questions With 100% Correct Answers 2023, Exams of Advanced Education

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BUSI 3250 Exam 3 Questions With 100%

Correct Answers 2023

Amortality - Correct Answer-anti-aging trends for millennials (market dedicated to anti- aging in the millennial market) Shareconomy - Correct Answer-also called the Shortcut society (MOOCs, Uber, AirBNB, renting your car to someone else) Cloaking - Correct Answer-Creation of private pages or closed groups on social media sites such as Fb, desharing and unselfies - deleting or use of self-destructing messages and use of anonymous website Predictable Consumer Behavior - Correct Answer-Analyzing data to improve marketing (as an example) Serendipity - Correct Answer-Enjoying surprises through coincidental discovers on social networks on through surprise boxes of cosmetics and skin care products, monthly subscriptions for dog items, makeup, clothes What is broader than market screening? - Correct Answer-Environmental Screening Environmental Screening - Correct Answer-A procedure in which the firm scans the world for changes in the environmental forces that might affect it. Example - world threats and opportunities Market Screening - Correct Answer-A modified version of environmental scanning in which the firm identifies desirable markets by eliminating the less desirable ones Looks at a market's basic needs and external environmental forces. Application of environmental scan to markets - Correct Answer-Market Screening True or False: is just because imports of a product are low, does not mean there isn't a market for that product.....the product may be produced locally at a large scale, therefore reducing the need for imports of a product. - Correct Answer-True A screening that uses countries as the basis for market selection. Narrowing down to a country (or more). - Correct Answer-Country Screening A screening that uses market segments, a within-country analysis of groups of consumers, as the basis for market selection (Within a country, for example China. Might only look at the top 10 cities of China as a potential market.....or a region within a country) - Correct Answer-Segment Screening

Type of screening that is influenced by climate, geography, and natural resources (Snowmobile demand in Russia versus Costa Rica) - Correct Answer-Initial Screening Snowmobile demand in Russia versus Costa Rica is what type of screening? - Correct Answer-initial screening (basic needs potential) Alabama's exports totaled _______ in 2019 - Correct Answer-$20.7 billion Second Screening is Financial and Economic Forces - Correct Answer-True In what screening phase would you see trends in inflation, currency exchange, interest rates, credit availability, paying habits, rates of return on similar investments - Correct Answer-Second Screening a statistical technique that divides objects into groups based on similarity; looking to group based on similar characteristics - Correct Answer-Cluster Analysis a statistical technique used to estimate future values by successive observations of a variable at regular time intervals that suggest patterns - Correct Answer-Trend Analysis Trend Analysis - Correct Answer-Using the past information/data to predict the future What phase of screening would you see barriers to entry such as import/export tariffs. Local content laws (Limits on foreign ownership, limits on repatriation of earnings, stable government policies) - Correct Answer-Third Screening (Political and Legal Forces) In what screening phase do you see more cultural forces? - Correct Answer-Fourth Screening Create difficulty for companies because culture is subjective and interpretive; Can offend if don't do your research - Correct Answer-Fourth Screening In what phase is data difficult to assemble, particularly from a distance. Best to be on the ground - if possible - to experience/witness/better understand the culture? - Correct Answer-Fourth Fifth Screening is - Correct Answer-competitive forces Deals with the number, size, and financial strength of the competitors, their market shares, their marketing strategies, the apparent effectiveness of their promotional programs, the quality levels of their product lines, the source of their products— imported or locally produced, their pricing policies, the levels of after-sales service, their distribution channels, their coverage of the market - Correct Answer-Fifth screening

In final selection of new markets, are there substitutes for personal visits to potential markets? - Correct Answer-NO - there are NO substitutes for personal visits to potential markets A market visit by business people and/or government officials (state or federal) in search of business opportunities - Correct Answer-Trade Mission Trade Exhibition - Correct Answer-A large exhibition at which companies promote the sale of their products The respondent's desire to please that leads to answers designed to please the interviewer rather than reflect the respondent's true beliefs or feelings - Correct Answer- Social Desirability Bias Governments use this to improve understanding of population patterns and to map public services. - Correct Answer-Big Data Massive sets of data both structured and unstructured that businesses are collecting, which can be analyzed with advanced data analysis methods such as predictive analytics or user behavior analytics - Correct Answer-Big Data Types of Non-equity modes of entry - Correct Answer-1) contractual agreements, 2) licensing/franchising, 3) turnkey 4) management contract and 5) contract manufacturing an export of technology, management expertise, and possibly capital equipment where a contractor agrees to design and erect a plant, supply the process technology, provide the production inputs, train the operating personnel, and, after a trial run, turn the facility over to the purchaser - Correct Answer-Turnkey projects (does all the "heavy-lifting" then turns it over to the customer) a contractual arrangement in which one firm grants access to its patents, trade secrets, or technology to another for a fee - Correct Answer-Licensing a form of licensing in which one firm contracts with another to operate a business under an established name according to specific rules - Correct Answer-Franchising Does franchising or licensing provide more control? - Correct Answer-Franchising an arrangement by which one firm provides management to another firm - Correct Answer-Management contract an arrangement in which one firm contracts with another to produce products to its specifications - Correct Answer-Contracted manufacturing a cooperative effort among two or more organizations that share a common interest in a business undertaking - Correct Answer-Joint Venture

collaboration with competitors, customers, and/or suppliers that may take non-equity or equity form. - Correct Answer-Strategic Alliance A set of strategy decisions made about the product and its promotion, pricing, and distribution in order to satisfy the needs and desires of customers in a target market. - Correct Answer-Marketing Mix What produces cost savings and consistent marketing - Correct Answer-Standardization includes a firm's name, logo, slogan, graphics, color, and typeface that help identify the firm to consumers and other interested constituents - Correct Answer-Corporate visual identity (CVI) What the customer buys, including the physical product, brand name, accessories, after-sales service, warranty, instructions for use, company image, and package - Correct Answer-Total Product Total Product - Correct Answer-The product satisfies the need of the consumer What is the central focus of the marketing mix? - Correct Answer-The total product What products require less adaptation than consumer products - Correct Answer- industrial products Degree of sensitivity for industrial products in foreign environment? - Correct Answer- Insensitive Degree of sensitivity for high style and faddish consumer products in foreign environment? - Correct Answer-Highly sensitive Degree of sensitivity for basic consumer products in foreign environment? - Correct Answer-in the middle What products often require more adaptation, except for luxury products - Correct Answer-consumer products Social and cultural values become more distinct in - Correct Answer-lower economic strata T/F: Sociocultural forces reflect consumer preferences - Correct Answer-true Physical forces such as climate and terrain often require - Correct Answer-adjustment in product and production (heat, humidity, high altitudes require modifications) Economic forces affect pricing, packaging, production - Correct Answer-true

Six common strategies: (name four) - Correct Answer-Straight extensions (same product, same message) Promotion adaptation (same product, different message) Product adaptation (same message, different product) Dual adaptation (Product adaptation, message adaptation) The global cinema advertising market is forecast to be worth _______ in 2019. - Correct Answer-US$4.6 billion China is the world's largest cinema ad market, with ___________ expected to be spent this year, equal to a 47.3% share of global cinema adspend. - Correct Answer-RMB11. billion ($1.67 billion) Advantages of Internet Advertising - Correct Answer-can reach an affluent, accessible audience; can be inexpensive; less heavily regulated; more engaging for customer since ads are interactive Industrial and luxury products lend themselves to ________________ approach - Correct Answer-standardized (marketing approach; certain consumer goods can also be standardized -- gas, soda) Global Advertising is moving toward - Correct Answer-middle of standardized-localized spectrum on advertising What is widely used in industrial sales? - Correct Answer-personal selling Used in consumer sales in developing countries - Correct Answer-personal selling t/f: Recruiting sales staff in foreign countries can create challenges. Hire someone that is culturally acceptable. - Correct Answer-true •Many businesses that use personal selling follow the - Correct Answer-home market model sets local pricing based on market forces in another country - Correct Answer-foreign national pricing sets prices of goods produced in one country and sold in another - Correct Answer- international pricing Main reasons companies do not export - Correct Answer--Preoccupation with home market (want to maintain stability in home market) -Reluctance to embark on a new & unknown operation -Lack knowledge on identifying foreign markets, payment & financing procedures, and export procedures

Small and medium size enterprises (SMEs) account for about ____ percent of the companies that directly export goods, but they account for only about _____ percent of the known value of goods exports(2020 - Correct Answer-97%; 33% Mistakes Made by New Exporters - Correct Answer-1.Failure to get qualified counseling and develop export strategy 2.Insufficient commitment by top management to overcome initial difficulties (If it's "too hard"/takes too much effort/time....commitment wanes quickly) 3.Poor choice of overseas sales representatives

4. Chasing orders rather than establishing basis for profitable and orderly growth (Fulfilling orders instead of pausing and looking at opportunities for strategic growth) 5.Neglecting exports when home market booms. Think of exporting as secondary. 6.Failure to treat international distributors on equal basis with domestic counterparts. 7.Assumption that a given marketing technique and product will work in all countries. (Belief that a standardized strategy will work) 8.Failure to modify products to meet regulations or cultural preferences of other countries 9.Failure to provide sales, service and warranty information in local languages. 10.Failure to consider use of export management company. 11.Failure to consider joint ventures and licensing. 12.Failure to provide readily available servicing for the product. Export Marketing Plan is like the domestic plan, it must state: - Correct Answer-What must be done when. (tactical approach) Who should do it. (resources) How much money will be spent. (budget) Export Marketing Plan and should include: - Correct Answer-- Specifics about the markets to be developed

• The marketing strategy for serving them
• Tactics required to carry out the strategy Export Marketing Plan is like the - Correct Answer-domestic plan Universal trade terminology developed by the International Chamber of Commerce - Correct Answer-INCOTERMS Incoterms - Correct Answer-Describe which party does which tasks, which party covers the costs, and which party bears the risk Ex-works - Correct Answer-Seller makes goods available at factory or warehouse, where risk passes

FCA - Correct Answer-Free carrier, seller hands over goods to carrier at a named place, where risk passes. CPT - Correct Answer-Carriage paid to destination, seller pays for carriage, while risk passes when goods handed to carrier FAS (free alongside ship) - Correct Answer-seller clears the goods for export and places them by the ship, risk passes at rail seller loads goods, risk passes at rail - Correct Answer-FOB (Free alongside ship) Cost and freight; seller pays costs of freight to bring goods to destination port. This does not include insurance. Risk passes once goods are loaded - Correct Answer-CFR CIP - Correct Answer-Carriage and insurance paid to destination, while risk passes when goods are handed to carrier Delivered at terminal; seller pays for transport and insurance to terminal and has risk until goods loaded at terminal - Correct Answer-DAT DAP - Correct Answer-Delivered at place; seller pays for carriage to the named place and assumes all risk until goods are unloaded. DDP - Correct Answer-Delivered, duty paid; seller delivers goods to destination and covers all duties, taxes, customs. CIF - Correct Answer-Same as CFR, but also includes insurance. Risk still passes at ship's rail CIF and CFR terms of sale are more convenient for foreign buyers because - Correct Answer-risk passes to buyer For exporters, the preferred pricing method is - Correct Answer-factory door cost Why is the preferred pricing method factor door cost for exporters? - Correct Answer- Because they don't have to "deal with product" once it leaves their factory Export sales agreements need to specify as simply as possible the duties of - Correct Answer-both buyer and exporter Two areas require special attention for Incoterms: - Correct Answer-- Responsibilities for patent and trademark registration.

• Designation of country and state or province whose laws will govern any contractual dispute. Few customers will pay cash in advance unless - Correct Answer-custom-made product

Cash in advance is more desirable when - Correct Answer-credit standing of buyer is unknown Seller assumes all risk so these terms must be offered only to reliable customers. Therefore exporter's capital is tied up until payment is received. - Correct Answer-Open Account consignment - Correct Answer-seller assumes all risk Seller not paid until product is sold by the buyer. Extra consideration needed by the seller. Frequently used by companies selling to their subsidiaries. - Correct Answer- Consignment Letter of credit (L/C) - Correct Answer-"basically riskless" Document issued by buyer's bank that promises to pay the seller a specified amount when the bank has received certain documents specified in the letter by a specified time. Only cash offers better terms than letter of credit - Correct Answer-Letter of credit A confirmation made by a correspondent bank in the seller's country by which it agrees to honor the issuing bank's letter of credit. - Correct Answer-Confirmed L/C A stipulation that the L/C cannot be canceled by the customer without the seller's consent - Correct Answer-Irrevocable L/C A bill of lading issued by an air carrier as proof as the shipment was made - Correct Answer-Airway bill Before opening a letter of credit a buyer will want an invoice. Buyer determines what documents are needed for their bank, then letter of credit created. Buyer's bank issues a letter of credit. - Correct Answer-true Pro forma invoice - Correct Answer-Exporter's formal quotation Contains a description of the merchandise, price, delivery time, method of shipping, terms of sale, and points of exit and entry - Correct Answer-Pro forma invoice may be requested if political and commercial risks are high - Correct Answer-export draft An unconditional order drawn by the seller that instructs the buyer to pay the draft on presentation (sight draft) or at an agreed future date (time draft); Must be paid before - Correct Answer-export draft

export draft must be paid before - Correct Answer-the buyer receives shipping documents A confirmed LOC guarantees payment to - Correct Answer-the seller; No guarantee from a documentary/export draft offering credit though exporters prefer L/C - Correct Answer-export financing Factoring - Correct Answer-Sale of an exporter's accounts receivable on ordinary goods, with the balance of the payment due upon delivery or soon after Factoring allows seller to be more competitive by - Correct Answer-selling on open account rather than by a more costly letter of credit Factoring protects against - Correct Answer-bad debt and political risk how many days are factoring terms? - Correct Answer-less than 180 days Sale of an exporter's accounts receivable on capital goods, commodities, and other high-value goods. - Correct Answer-Forfaiting For forfaiting, payment due at least 180 days out up to - Correct Answer-5 years Provides direct loans to foreign buyers of US exports and can be make up to 85% of the value of goods. - Correct Answer-US Export-Import Bank US Export-Import Bank - Correct Answer-The principal government agency that provides loans, guarantees, and insurance programs to support U.S. exporters Offers U.S. investors in developing countries insurance against expropriation, currency inconvertibility, and damages from wars and revolutions - Correct Answer-Overseas Private Investment Corporation (OPIC) True or False: No import duties need be paid while goods are in the Foreign Trade Zones (FTZ). - Correct Answer-TRUE FTZs help - Correct Answer-stimulate trade - duty free areas - reduce effect of customs restrictions ______ FTZs in US - Correct Answer- over __________ FTZs are in existence with 1,000 implemented over the past 5 years (August 2019) and expect at least 500 more to be established in the next few years - Correct Answer-5, Foreign Freight Forwarders - Correct Answer-Act as agents for exporters

Prepare documents, book space with carriers and will supply marine insurance if asked

• Correct Answer-Foreign Freight Forwarders "export traffic department" - Correct Answer- number of documents needed can be as many as ___ for Foreign Freight Forwarders - Correct Answer-8 (or more) U.S. Department of Commerce form used to control export shipments and record export statistics - Correct Answer-Shipper's Export Declaration (SED) Gives title of shipment to a specified party - Correct Answer-Export Bill of Lading Export bill of lading serves three purposes: - Correct Answer-1.Contract for carriage between shipper and carrier. 2.Receipt from the carrier for the goods shipped. 3.Certificate of ownership. Evidence that insurance coverage has been obtained to protect shipment from loss or damage while in transit - Correct Answer-Insurance Certificate Marine Insurance - 3 kinds of policies - Correct Answer-- Basic named perils (Sea, fires, jettisons, explosions, hurricanes)
• Broad named perils (Theft, pilferage nondelivery, breakage, and leakage plus basic perils)
• All-risks perils (More expensive than the other 2; Covers all physical loss or damage) Are war risks covered under separate contract than marine insurance? - Correct Answer-yes Materials handling time is reduced, and the risks of damage and theft are minimized in - Correct Answer-containerization Containerization items are sealed and not opened until - Correct Answer-goods arrive at final destination (Reduces pilferage) Air freight Has had a profound effect on international business because shipments which required 30 days for delivery by ocean freight are now delivered in - Correct Answer-24 hours Even when total costs for airfreight are higher, it may still be advantageous to ship by air when production and opportunity costs are considered because - Correct Answer- Customers get product faster and more satisfied

Customhouse brokers - Correct Answer-Independent businesses that handle import shipments for compensation. - opposite of freight forwarders Customhouse brokers are concerned about the - Correct Answer-import of a product, not export Provide services such as arranging transportation for the goods after they leave customs and advising clients as to import quotas - Correct Answer-Customhouse brokers Customhouse brokers can arrange to place goods in a _______________ when necessary - Correct Answer-bonded warehouse An area authorized by customs authorities for storage of goods on which payment of import duties is deferred until their removal. - Correct Answer-bonded warehouse T/F: Product Design has a fundamental relationship with the types of inputs a company will require - Correct Answer-True What is the primary reason for global sourcing? - Correct Answer-to obtain lower prices (or certain products may not be available locally) Relocation of some or all of a business's activities or processes to a foreign location - Correct Answer-Offshoring Outsourcing has become an increasingly common option for companies because it allows them to - Correct Answer-Focus scarce resources on their core competencies, leverage the skills of other companies to reduce costs and capital investments, improve flexibility and speed of response, enhance quality (provide other strategic benefits) Can any part of the value chain can be outsourced? - Correct Answer-Yes Established in a country with low cost labor or producing a product not made in the home country - Correct Answer-Global sourcing arrangements Where is overseas joint venture established - Correct Answer-Established where labor costs are lower to supply components to the home country Home country plant sends components to be machined and assembled or just assembled by an independent contractor in an in-bond plant. - meaning taxes and duties are not paid for temporarily imported products - Correct Answer-In-bond plant contractor Example of in-bond plant contractor - Correct Answer-Maquiladora plants in Mexico

Common in the clothing industry in which firms with no production facilities contract with foreign manufacturers to make clothing to their specifications with their label - Correct Answer-Overseas independent contractor Company contracts with an independent manufacturer in another country to provide it with products, often designed by the overseas manufacturer - Correct Answer- independent overseas manufacturer Trade that occurs between a parent company and its foreign affiliates - Correct Answer- intrafirm trade The proportion of externally purchased materials in the overall cost of goods sold has been - Correct Answer-rising Reduces cost of inventory because not "holding it"........great concept and optimal approach.....until a crisis hits like Hurricane Katrina, Suez Canal blockage (if it went on for a month or more), pandemic, etc. - Correct Answer-Just-in-time What type of logistics system was developed to enable firms to manage inventory cost and enhance quality? - Correct Answer-Just-in-time (JIT) A balanced system in which there is little or no delay time and idle in-process and finished goods inventory - Correct Answer-JIT A companywide management approach in which the entire organization is managed so that it excels on all dimensions of product and services that are important to the customer - Correct Answer-Total Quality Management Small work group that meets periodically to discuss ways to improve its functional areas and the quality of the product - Correct Answer-Quality Circle the resource that requires the longest time in operations of the supply chain for certain demand. (lean manufacturing) - Correct Answer-Bottleneck A business management process for reducing defects and eliminating variation - Correct Answer-Six Sigma is the managerial functions associated with the movement of materials such as raw materials, work in progress, or finished goods - Correct Answer-Logistics Logistics services include: - Correct Answer-Shipping Warehousing Distribution management Brokerage services

Benefits of Standardization - Correct Answer-Ensures that materials, products, processes, and services are appropriate for intended purpose Cultural forces that affect standardization - Correct Answer-Developing nations commonly lack skilled workers Vocational education may not be popular Economic forces that affect standardization - Correct Answer-Wide range of market sizes. can select either a capital-intensive or a labor-intensive process Computer-integrated manufacturing limited to industrialized nations. Automation may increase productivity. Backward vertical integration includes manufacture of inputs. Which is one of the most serious challenges faced by manufacturers on a day to day basis? - Correct Answer-Supply chain disruptions In regard to product design, ____________ is important for storage, function, and transportation - Correct Answer-package Is there a cost advantage to locating 3D printers abroad? - Correct Answer-No (False, there is not) __________ is the opposite of freight forwarders? - Correct Answer-customhouse brokers 4Ps are also known as what? And are made up of product, place, price, promotion - Correct Answer-Marketing Mix Since the crash of 2008, _____________ laws have been on the rise. Typically seen in automotive, oil and gas, and energy. - Correct Answer-local content laws Which of the following is a main reason companies do not export? - Correct Answer- Reluctance to embark on a new, unknown operation. What percent of the Ex-Im bank's transactions in 2016 supported US small businesses - Correct Answer-90% What is the ultimate goal of supply chain? - Correct Answer-to reduce inventory Who is the world's largest cinema ad market? - Correct Answer-China Change product and change the message - Correct Answer-dual adaptation Consumer market products require less adaptation than industrial products? - Correct Answer-False (they require more adaptation)

In the initial market screening process, we look for what kind of potential? - Correct Answer-basic needs potential