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Purchasing Power, Gini index, Market Selection, International Marketing Mgt. – IBUS Exam

The key terms in this International Marketing course include Reactive Foreign Market Selection, Purchasing Power, Gini index, CE Mark, Product Safety Standard, European Union, Non-Tariff Barrier, Capital Account, Market Screening, International Marketing Mgt. – IBUS Exam


Following competitors to a foreign market is an example of

the dyadic model of foreign market selection.

proactive internationalization.

reactive foreign market selection.

avoiding political risk.


Purchasing power parity measures of income are important to the international marketing manager because

they allow an international marketing manager to forecast future demand.

they a more realistic view of consumers’ purchasing power in an given country.

they demonstrate that all markets have relatively equal ability to purchase items.

they break down barriers caused by different currencies.


To capture how income is distributed in a nation, researchers use a measure known as the

purchasing power index.

Gini index.

income index.

Delphi index.


The CE mark is a product safety standard of the European Union that acts as a

non-tariff barrier.

first-mover advantage.

tariff quota.

tariff barrier.


Three key factors concerning infrastructure that need to be considered when screening potential foreign markets are:

energy, transportation, and communication.

natural resources, income, and energy.

transportation, trade capabilities, and natural resources.

trade capabilities, energy, and income.


The very first step in market screening for international expansion is

determine the value of indicators.

converting data to manipulate criteria.

ranking foreign markets by population.

identifying indicators of selection criteria.


Why might an international marketing manager research the capital account of a country?

To better understand its trade deficit or surplus in products and services

To potentially identify a risk of currency devaluation

To identify its fiscal policy regarding consumer demand

To better understand its trade deficit or surplus in products


Following competitors to a foreign market is an example of

the dyadic model of foreign market selection.

proactive internationalization.

reactive foreign market selection.

avoiding political risk.


Purchasing power parity measures of income are important to the international marketing manager because

they allow an international marketing manager to forecast future demand.

they a more realistic view of consumers’ purchasing power in an given country.

they demonstrate that all markets have relatively equal ability to purchase items.

they break down barriers caused by different currencies.