W7-8

Question 1

must be broken down
into meaningful categories in order for the marketer to
take better advantage of them.

Answer 1

Population figures

Question 2

an important variable for the international marketer is
the size of the household.

Answer 2

Population

Question 3

markets require not only people but also _________, which is a function of income, prices, savings,
and credit availability.

Answer 3

purchasing
power

Question 4

most indicative of the market potential for
most consumer and industrial products and services.

Answer 4

Income

Question 5

state that as a family’s income
increases, the percentage spent on food will
decrease, the percentage spent on housing and
household operations will be roughly constant, and
the amount saved or spent on other purchases will
increase.

Explanation:
When people earn more money, they don’t need to spend as much of it on food. They still spend the same amount on things like rent or electricity. But they have more money left for fun stuff or saving.

Answer 5

Engel’s Law

Question 6

composite measure of the level of welfare in a country

Answer 6

Physical Quality of Life Index (PQLI)

Question 7

The Physical Quality of Life Index (PQLI)
three components

Answer 7

(1) life expectancy
(2) infant mortality
(3) adult literacy rates

Question 8

LEVELS OF ECONOMIC INTEGRATION
Pyramid top to bottom

Answer 8

(1) Economic Union
(2) Common Market
(3) Custom Union
(4) Free Trade Agreement
(5) Preferential Agreement

Question 9

Decisions regarding integrating markets must be
assessed from four different perspectives:

Answer 9

(1) the range
and impact of changes resulting from integration
(2) development of strategies to relate to these changes
(3) organizational changes needed to exploit these changes
(4) strategies to influence change in a more favorable direction.