One Method of Assessing Whether a Company Should Enter a Foreign

question 15

Multiple Choice

One method of assessing whether a company should enter a foreign market or not is to use an opportunity matrix. To use such a matrix, the marketer should assess high,
Moderate, and low opportunities as measured on business and political risk and
___________________ scales or cells.

• A) demand
• B) financial constraints
• C) market opportunities
• D) market sensitivity
• E) distance from home market

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Definitions:

Variable Cost

Costs that vary directly with the level of production or the volume of services provided.

Fixed Expense

Costs that remain unchanged over a specified period despite variations in business activity levels, such as lease payments or salaries for permanent staff.

Break-even

The point at which total costs and total revenues are equal, meaning no profit or loss is incurred.

Break-even Point

The point where total costs and total revenues are the same, leading to neither profit nor loss in sales or production levels.