An Important First Step in Adapting a Product to a Foreign

question 5

Multiple Choice

An important first step in adapting a product to a foreign market is to determine:

• A) the degree of newness as perceived by the intended market.
• B) the economic climate of the target market.
• C) the advertising parallels with the domestic market.
• D) the ability of a sales force to sell the product.
• E) the compliancy to religious doctrine(s) in the foreign country.

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Definitions:

Discounting Approach

A financial strategy that determines the present value of future cash flows by applying a discount rate.

Discount Rate

It’s the interest rate used in the process of discounted cash flow analysis to evaluate the present value of anticipated future cash flows.

Required Return

The basic annual percent yield needed to appeal to individuals or businesses for investment in a specific project or security.

Cash Flows

The gross flow of cash and assets equivalent to cash moving into and away from a business operation.