Scenario: Chong's Analysis of International Markets

question 61

Multiple Choice

Scenario: Chong's Analysis of International Markets
John Chong is an inexperienced entrepreneur in global business. He wants to sell his product, Zulu doll, a toy for kids below the age of eight, in every corner of the world. He wants to examine all potential markets but wants to keep his costs low. John has asked you to explain a few things about analyzing international markets.
-The income-elasticity coefficient for Zulu doll is 1.2,which means the demand for Zulu doll will ________.

• A) increase 1.2 percent for every 1.0 percent increase in income
• B) decrease 1.0 percent for every 1.2 percent increase in income
• C) decrease 1.2 percent for every 1.0 percent increase in income
• D) remain stagnant since 1.2 is the equilibrium value

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Definitions:

Learning Transfer System Inventory

An evaluative tool designed to assess the effectiveness with which knowledge or skills learned in one context are applied in another.

Transfer of Learning

The application of skills, knowledge, or abilities acquired in one context to different situations or environments.

Stimulus Variability

The diversity or range of stimuli presented in a learning or experimental context, intended to enhance adaptability, learning effectiveness, and generalization of skills.

Generalization of New Skills

The ability to apply newly acquired abilities or knowledge across various contexts or settings beyond the initial learning situation.