Chapter 14

Assume the firm receives an additional $1 million of interest income from some bonds it owns. What is the tax on this interest income?

A) Students waiting in line to sell their textbooks at the end of the semester

A firm wants to expand its marketing efforts. Which market segmentation criteria should be considered?

Today, firms have to deal with a global marketplace; marketers have no other choice. Participation in global marketing has begun to shift from a mere “option” to an imperative. The world is becoming more homogeneous. Distinctions between national markets

How should this market be segmented? Identify the key segmentation variables that are relevant for this market.

International market segmentation is the dividing of market into segments, this allow marketers to effectively determine whether business can thrive in a particular area. Segmentation is based on four factor namely geographical, psychographic, demographic and lastly behavioral segmentation. Geographical segmentation refers to grouping markets geographically such as nations, states or cities. Psychographic segmentation is the dividing of buyers into groups based on lifestyle or social class/status. Demographic segmentation uses factors like age, gender, occupation and etc to separate markets into groups. Last but not least, behavioral segmentation, this kind of segmentation divides buyer into groups by their knowledge about particular

22. Which of the following is not something firms that operate internationally are able to do?

9d) False. If trade is good for a country it is not good for everyone in the country. It makes some individuals worse off through imports as it makes the country as a whole better off.

Stanek, M. B. (2002). A review of exchange rate policies and their effect upon nations and

4. An increase in the foreign price level relative to the U.S. price level would cause the import

There would be no significant impact on any economies as long as exchange rates are flexible.

In business marketing, market segmentation and targeting specific markets aids organizations by reducing the risks involved in decisions of how, where, when, and with whom the brand, product, or service will be advertised, directed, or promoted to. Positioning the product or service to the accurate target while controlling the marketing budget are tactics used by marketing professionals to assure reaching the largest target group and controlling costs (Boundless, 2014). Attracting the right customer is the ultimate objective of targeting specific markets by directing the research and efforts in a manner

(i) Briefly, what is the issue? What impact does it have on different regions’ GDP, prices, exchange rates and Interest rates?

The world is made up of different people, therefore segmentation provides consumers products that fulfil their individual needs. Martin (2011) states that companies have to try different segmentation variables either alone or in combination because often the best choices arise from using various strategies. There are few ways to segment a market, therefore, companies must think innovatively and be willing to re-segment if needed.

All three countries are WTO members, have had export oriented strategy, trade surplus which led to significant foreign reserves and high rates of domestic investment; however, the source of economic growth and financial development in each country differed from the other one.