Podcast
Questions and Answers
What does the Market Potential Index (MPI) measure?
What does the Market Potential Index (MPI) measure?
- Potential of emerging markets (correct)
- Willingness of companies to invest
- Political stability in a country
- Productivity and competitiveness of countries
What is the main focus of the Global Competitive Index (GCI)?
What is the main focus of the Global Competitive Index (GCI)?
- Political stability
- Productivity and competitiveness (correct)
- Market size
- Exporting goods
The FDI Confidence Index reflects the willingness of a country to invest in foreign markets.
The FDI Confidence Index reflects the willingness of a country to invest in foreign markets.
False (B)
What are the four phases of the International Product Life Cycle?
What are the four phases of the International Product Life Cycle?
What characterizes a floating exchange rate?
What characterizes a floating exchange rate?
In advance payment, the importer pays the exporter before the goods are ______.
In advance payment, the importer pays the exporter before the goods are ______.
Match the modes of payment with their characteristics:
Match the modes of payment with their characteristics:
What is a key feature of a Joint Venture (JV)?
What is a key feature of a Joint Venture (JV)?
Investment modes in international business include contractual agreements.
Investment modes in international business include contractual agreements.
Name one factor affecting globalization.
Name one factor affecting globalization.
Study Notes
Market Potential Index (MPI)
- Measures the overall attractiveness of a country's market for a particular product or service
- Considers factors like market size, growth potential, and competitive intensity
Global Competitive Index (GCI)
- Focuses on a country's productivity
- Examines factors like infrastructure, institutions, innovation, and market size
Foreign Direct Investment (FDI) Confidence Index
- Reflects a country's attractiveness for foreign investors
- A high index score indicates high confidence in the country's economic and political environment
Phases of the International Product Life Cycle
- Introduction
- Growth
- Maturity
- Decline
Floating Exchange Rate
- Determined by market forces of supply and demand for currencies
- Fluctuates continuously
Advance Payment
- The importer pays the exporter before the goods are shipped.
Modes of Payment Characteristics
- Letter of Credit: Issued by a bank guaranteeing payment to the exporter if certain conditions are met
- Documentary Collection: Bank acts as an intermediary but doesn't guarantee payment
- Open Account: Importer pays the exporter after receiving the goods, based on trust
- Advance Payment: Importer pays the exporter before receiving the goods, reducing exporter risk
Joint Venture (JV)
- Two or more companies share ownership and control of a new business entity
- Offers access to each partner's expertise and resources
Investment Modes in International Business
- Involve ownership of foreign assets
- Can also include contractual agreements, which don't involve ownership
Factors Affecting Globalization
- Technological advancements
- Trade liberalization
- Political changes
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Description
Explore the essential tools used for selecting international markets and understanding the international product life cycle. This quiz covers indices such as the Market Potential Index, Global Competitive Index, and more. Test your knowledge on how these tools aid companies in navigating global markets.
