University of North Carolina, Greensboro

MGT 301

Chapter Five

1)Scenario: A Better Mousetrap, Inc.

A Better Mousetrap, Inc., is a manufacturing company that sells pest control systems. Recently the company launched an innovative mousetrap with a unique design that has been selling well in the U.S. market. Senior vice president Marc Wallace recommends expanding sales overseas as a way to increase company revenues.

1. 1. Eventually, Wallace expects that domestic production of the mousetrap will cease altogether. This would happen in the      life cycle stage.

1. 2. Wallace's executive team reviews the stages of the international product life cycle to better understand what to expect when the product is sold overseas. Since there is virtually no export market for the product at present, it is most likely in which of the following stages of the life cycle?

2. Scenario: Foodland and Drinkland

Two countries, Foodland and Drinkland, produce food and drinks. In Foodland, one resource unit produces 20 tons of food and one resource unit produces 10 tons of drinks. In Drinkland, one resource unit produces 12 tons of food and one resource unit produces 24 tons of drinks.

1. 1. A third country, Funland, also produces food and drinks. In Funland, one resource unit produces 8 tons of food and 6 tons of drinks. Which of the following is true about Funland, Foodland, and Drinkland?

1. 2. Which of the following is a true statement about the above scenario?

1. 3. This scenario provides an example of     .

1. 4. Based on the above scenario, which of the following is a true statement?