A small country in Central America previously produced all of their own clothing because they have a strong textiles industry. Recently, they began importing clothing from Philippines, Vietnam, and Bangladesh. What is the likely result?
A) The importing country will have fewer choices of clothing.
B) The importing country will experience higher clothing prices.
C) The importing country will shift additional resources into their own textile industry.
D) The importing country will likely shift resources from textiles to a higher value industry.
E) The importing country will export less overall.
Question 2 - Exchange rates between countries are usually determined by:
A) a number of factors including interest rates, inflation, and imports/exports for the countries.
B) the average interest rates for the two countries plus GDP.
C) inflation in the first country, divided by interest rate in the second country.
D) an agreement between the two countries plus an interest rate exchange.
E) the International Monetary Fund.
Question 3 - China exports electronics to countries all over the world. Suppose the value of the Chinese Yuan increases relative to other countries' currencies. What is the likely result?
A) Other countries would import more electronics from China.
B) China would export fewer electronics to other countries.
C) China would export more electronics to other countries.
D) China would experience economic expansion.
E) International investors are likely to invest in Chinese markets.
Question 4 - As the product idea committee of Foster Manufacturing Company went through its list of possible new products, it rejected various ideas for one or more reasons. Which of the following is least likely to be a reason for rejection?
A) The company lacked the expertise to develop and market the product.
B) The product did not match organizational resources.
C) The product would allow the company to increase its annual sales by 20.
D) The product was not consistent with the company's objectives.
E) The company lacked the needed human resources.
Question 5 - In a meeting to generate new products, the advisory committee felt that it had come up with some excellent ideas. Now that there is a list of product ideas, the next step is:
A) business analysis.
B) product development.
C) product analysis.
D) test marketing.
E) commercialization.
Question 6 - Nashville, Tennessee, serves as the top test market in the United States. Here, companies roll out new products on a small scale and test how well they sell and are received by the market. Companies in the test market phase are likely at which stage of product development?
A) Idea generation
B) Commercialization
C) Product development and testing
D) Determining the marketing mix
E) Product analysis
Question 7 - Most product ideas are rejected during the _____ stage of new product development.
A) product analysis
B) test-marketing
C) idea generation
D) business analysis
E) pricing
Question 8 - Lever Brothers is considering an idea for a new liquid laundry detergent that contains a whitening agent. The company presents its ideas to a group of potential customers in order to obtain their feedback. Which phase of product development does this represent?
A) Idea generation
B) Product analysis
C) Prototyping
D) Commercialization
E) Product development and testing
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