1.The components of global market assessment include all of the following EXCEPT:
- A.sensory analysis.
- B.infrastructure and technology analysis.
- C.analysis of government actions.
- D.sociocultural analysis.
- E.economic analysis.
The four components of a global market assessment are economic analysis, sociocultural analysis, infrastructure/technology analysis, and analysis of government actions.
2. Resellers differ from producers in that resellers significantly alter the form of goods they sell. FALSEResellers do not significantly alter the form of the goods they sell. Wholesalers and distributors are two types of resellers.
3. Answer is “innovators”. See page 233 in text.
4. To evaluate the economic potential of a new global market, you would start with GDP and GNI. A country’s GDP is a measure of the total market value of final goods and services produced in a year. GNI is GDP plus net income earned from investments abroad and minus payments made to nonresidents (net investment income in and out of a country). A country’s income is only part of the economic picture.
Purchasing power parity provides an estimate of the spending power of income within a country. Finally, you might evaluate a country’s human development index, which includes life expectancy, literacy, and distribution of income. (From textbook pages 135 to 138) (Please keep in mind that this would be ONE possible answer among many, many possible answers. Each short answer question is worth 7. 5 points, as announced in class, posted on Blackboard, and also as we discussed in section. You can earn partial credit even if your response is not 100% correct. )