Question : 31. (p. 396-397) Many reasons for marketing consumer products and services abroad match : 1242107

31. (p. 396-397) Many reasons for marketing consumer products and services abroad match with those for marketing industrial goods abroad. However, there is one important additional reason for marketing industrial goods abroad that does not apply to the consumer market. What is that reason? 
A. Avoiding inflationary pressures domestically
B. Making as much profit as possible
C. Dampening the natural volatility of industrial markets
D. Meeting foreign competitors in their home markets
E. Setting up situations where strategic alliance opportunities might be realized

32. (p. 397) Which of the following is a factor that exacerbates the volatility in demand in industrial markets? 
A. Professional buyers tend to act in concert.
B. Derived demand decelerates changes in markets.
C. There are small, noncyclical swings in demand inherent in industrial markets.
D. Experienced purchasers tend to act independently.
E. Inelastic demand accelerates changes in markets.

33. (p. 398) For managers selling capital equipment and big-ticket industrial services, understanding the concept of _____ demand is absolutely fundamental to their success. 
A. kinked
B. sliding
C. multiple
D. derived
E. postponed

34. (p. 398) Derived demand can be defined as demand: 
A. that is derived from supply.
B. that is matched to consumer wants and needs.
C. dependent on another source.
D. that is volatile.
E. for a basic good wanted for its own sake.

35. (p. 398) Ryan Teed knows that domestic industrial demand is very volatile. He decided to hire a consultant to give him advice on what to do about this unacceptable situation. Which of the following would NOT be a measure put forward as a solution to combat volatile demand in the industrial goods sector? 
A. Maintain a broad product line
B. Raise prices faster
C. Reduce advertising expenditures during booms
D. Ignore market share as a strategic goal, avoid layoffs, and focus on stability
E. Invest in foreign high-yield financial instruments

36. (p. 398) Why are German and Japanese firms generally better at managing market volatility than American firms? 
A. Their emphasis is on beating competitors.
B. They value employees and stability very highly.
C. They maintain limited product lines.
D. They reduce prices faster and raise advertising expenditures during booms.
E. They consider market share as a strategic goal.

37. (p. 399) Which of the following is, perhaps, the most significant environmental factor affecting the international market for industrial goods and services? 
A. Foreign exchange
B. Political conditions
C. The degree of industrialization
D. The level of competition
E. Inflation

38. (p. 399) With respect to industrial demand, which of the following best characterizes the “traditional society” described in Stage 1 of Rostow’s five-stage model of economic development? 
A. A service economy is on the horizon.
B. The important industrial demand is associated with natural resources extraction.
C. Primary needs are related to infrastructure development.
D. Manufacturing of both semidurable and nondurable consumer goods begins.
E. The focus in on low-cost manufacturing of a variety of consumer and some industrial goods.

39. (p. 399) In Stage 2 of Rostow’s five-stage model of economic growth, manufacturing is beginning and primary needs are related to infrastructure development. Which of the following countries would be characterized as being in this stage of economic development? 
A. Russia
B. Eastern European countries
C. South Korea
D. Czech Republic
E. Vietnam

40. (p. 399) If a country has reached an economic development level where there is a focus on manufacturing of both semidurable and nondurable consumer goods and goods demanded relate to equipment and supplies to support manufacturing, which of the following stages of Rostow’s five-stage model of economic growth is the country in? 
A. The traditional society
B. Drive to maturity
C. Preconditions for takeoff
D. Takeoff
E. The age of mass consumption