Chapter 4 Mini Sim Exercise: Going Global Exam with Verified Answers
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Chapter 4 Mini Sim Exercise
Chapter 4 Mini Sim Exercise: Going Global Exam with Verified Answers
1. ETHIOPIA:
X 77=
NIGERIA: X
55=
BANGLADESH:
X 40=
INDONESIA:
X 25=
INDIA: X
25=
2. The U.S. dollar has
skyrocketed in value
against the Indian Ru-
pee. That was the best
choice. This isn't a
good sign...
Chapter 4 Mini Sim Exercise: Going Global Exam with Verified Answers
1. ETHIOPIA: 102000000 Decision Point: International Market Analysis
X 77= 78540000 You've done a considerable amount of research and
have determined the following:
NIGERIA: 187000000 X Approximately 75% of the population in Ethiopia
55= 102850000 does not have electricity.
Approximately 55% of the population in Nigeria
BANGLADESH: does not have electricity.
163000000 X 40= Nearly 40% of the population in Bangladesh does
652000000 not have electricity.
Nearly 25% of the population in Indonesia does not
INDONESIA: have electricity.
260000000 X 25= Approximately 25% of the population in India does
65000000 not have electricity.
INDIA: 1327000000 X You recognize, however, that it would be wise to
25= 331750000 consider the population of those countries before
determining which market(s) would have the great-
est potential for your products, so you obtain that
information as well.Your research reveals the follow-
ing population estimates:
Population of Ethiopia: 102,000,000
Population of Nigeria: 187,000,000
Population of Bangladesh: 163,000,000
Population of Indonesia: 260,000,000
Population of India: 1,327,000,000
Based on the information presented above, calcu-
late the number of people in each country who do
not have access to electricity.
2. The U.S. dollar has Decision Point: Choosing an International Market
skyrocketed in value
against the Indian Ru- On the basis of population, it would appear that
pee. That was the best India has the greatest potential for your solar kits.
choice. This isn't a
good sign. If the U.S. However, you realize that this is a huge decision,
dollar is strong relative so you decide to do more research before finalizing
to the Indian currency your decision. Which of the following factors, if true,
(the rupee), your solar would make you less inclined to enter the Indian
1/8
, Chapter 4 Mini Sim Exercise: Going Global Exam with Verified Answers
kits will be more ex- market?
pensive for Indian con-
sumers, which could Select an option from the choices below and click
negatively impact your Submit.
sales.
3. IN THIS ORDER: C. Decision Point: Levels of International Involvement
Exporter/ ImporterB. You've made the decision to go global with your
International firmA. solar kits, and it appears that India presents the best
Multinational firm potential market for your products.
It's time to jump into the pool, but you need to decide
whether you're going to jump into the shallow end or
the deep end.
Consider the following levels of international in-
volvement. Type the letter representing the level of
international involvement into the correct circle on
the continuum. Each correct answer is worth three
points.
4. Licensing agreement. Decision Point: Your International Organizational
That was a good Structure
choice, although it re- You've determined that India presents the greatest
quires a higher lev- potential for your solar kits. Now it's time to decide
el of involvement on the best approach for launching your solar kits in-
your company's part ternationally.
than utilizing an inde-
pendent agent. A li- You recognize that there are different types of or-
censing arrangement ganizational strategies available to you to introduce
is a contract under your solar kits in India.You want to go slowly and en-
which you would al- ter this new market with minimal risk and expense.
low a company in In-
dia to use your brand Of the following, which approach will you use?
name, operating proce-
dures, and proprietary Select an option from the choices below and click
technology. You would Submit.
give this foreign com-
pany exclusive rights
2/8
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