CES Market Research & Competitive Analysis 3 — Questions and Answers
Question 1: Which analytical tool maps a company's strengths and weaknesses against external opportunities and threats to guide export market strategy?
- Porter's Five Forces
- SWOT analysis (Correct answer)
- BCG growth-share matrix
- PEST analysis
Correct answer: SWOT analysis
SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is a foundational strategic planning tool that assesses both internal capabilities and external market conditions.
Question 2: A U.S. exporter discovers that a competing foreign supplier offers identical products at prices below the cost of production in the foreign country. This practice is known as:
- Predatory pricing
- Dumping (Correct answer)
- Transfer pricing
- Price skimming
Correct answer: Dumping
Dumping occurs when a foreign producer exports goods at prices below their home market price or below cost of production, and it can be countered by antidumping duties.
Question 3: What does a high 'market concentration ratio' (CR4 > 80%) in an export target market imply for a new entrant?
- Easy entry because many small competitors are fragmented
- Difficult entry because four firms dominate 80%+ of the market (Correct answer)
- Low price competition because firms cooperate
- High government subsidies available to new entrants
Correct answer: Difficult entry because four firms dominate 80%+ of the market
A high CR4 means four firms control most of the market, signaling an oligopolistic structure where new entrants face significant barriers and established competitor advantages.
Question 4: Which International Trade Administration (ITA) program connects U.S. exporters with pre-screened potential foreign buyers, distributors, and agents through in-country events?
- Export-Import Bank Direct Loan Facility
- Gold Key Matching Service (Correct answer)
- OPIC Investment Support Program
- SBA Export Express Loan
Correct answer: Gold Key Matching Service
The U.S. Commercial Service's Gold Key Matching Service arranges pre-screened meetings with potential partners in a foreign market, helping exporters find qualified business contacts.
Question 5: When assessing an export market's 'infrastructure readiness,' which factor is LEAST relevant to a digital software company's market entry decision?
- Internet penetration rate
- Mobile broadband speed and reliability
- Deep-water port capacity and container throughput (Correct answer)
- Cybersecurity regulatory framework
Correct answer: Deep-water port capacity and container throughput
Deep-water port capacity is critical for physical goods logistics but largely irrelevant for a digital software company that delivers products electronically.
Question 6: The 'country risk' rating provided by the OECD's Export Credit Agencies helps exporters primarily with:
- Determining optimal product pricing for the market
- Assessing the creditworthiness and political stability affecting export payment risk (Correct answer)
- Calculating import duty rates and tariff classifications
- Identifying the best local distribution channels
Correct answer: Assessing the creditworthiness and political stability affecting export payment risk
OECD country risk classifications (0–7) guide export credit agencies in setting minimum premium rates for export credit insurance, reflecting payment and political risk.
Question 7: A U.S. company conducting primary market research in Japan uses a survey instrument developed in English and translated into Japanese. The BEST practice to ensure translation accuracy is:
- Have a bilingual employee translate the survey once
- Use back-translation by having a second translator render the Japanese back into English (Correct answer)
- Use machine translation software for speed and cost efficiency
- Pilot test only with U.S.-based Japanese speakers
Correct answer: Use back-translation by having a second translator render the Japanese back into English
Back-translation involves a second, independent translator converting the target-language version back to the source language, revealing discrepancies and ensuring conceptual equivalence.
CES Market Research & Competitive Analysis 3
Which analytical tool maps a company's strengths and weaknesses against external opportunities and threats to guide export market strategy?