Question

The more costly and time consuming it is to export and import, the more difficult it is for local companies to be competitive and to reach international markets. As part of an initial investigation exploring foreign markets entry, 10 countries were selected from each of four global regions. The cost associated with importing a standardized cargo of goods by sea transport in these countries (in US$ per container) is stored in ForeignMarket2.

a) At the 0.05 level of significance, is there evidence of a difference in the mean cost of importing accross the four global regions?

b) If appropriate, determine which global regions differ in mean cost of importing.

d) Which global region(s) should you consider for foreign market entry? Explain.

Country	RegionN	CosttoexportUS$percontainer	CosttoimportUS$percontainer
Singapore	1.00	460	440
Malaysia	1.00	525	560
Indonesia	1.00	572	647
Hong Kong SAR, China	1.00	590	565
Thailand	1.00	595	760
Vietnam	1.00	610	600
Taiwan, China	1.00	655	720
Philippines	1.00	755	915
Cambodia	1.00	795	930
China	1.00	823	800
Lithuania	2.00	750	800
Cyprus	2.00	865	1010
Montenegro	2.00	985	985
Turkey	2.00	990	1235
Bulgaria	2.00	1375	1365
Macedonia, FYR	2.00	1376	1380
Belarus	2.00	1460	2265
Romania	2.00	1485	1495
Ukraine	2.00	1880	2455
Russian Federation	2.00	2401	2595
Peru	3.00	890	1010
Chile	3.00	910	860
Costa Rica	3.00	1020	1070
Belize	3.00	1355	1580
Mexico	3.00	1499	1888
Jamaica	3.00	1580	2180
Argentina	3.00	1770	2320
Brazil	3.00	2323	2323
Colombia	3.00	2355	2470
Venezuela, RB	3.00	3490	3695
Egypt, Arab Rep.	4.00	625	790
Bahrain	4.00	810	870
Jordan	4.00	825	1235
Qatar	4.00	927	1050
Lebanon	4.00	1080	1365
Kuwait	4.00	1085	1250
Algeria	4.00	1270	1330
Saudi Arabia	4.00	1285	1309
Syrian Arab Republic	4.00	1995	2410
Iraq	4.00	3550	3650

Answer 1

a) from the results of anova from r studio ,

p value is 0.00264 which is less than 0.05(level of significance).

Therefore we reject null hypothesis at 5% level of significance . i.e. there is evidence of a difference in the mean cost of importing accross the four global regions.

b)

From the post hoc tukey test p value of pairs 1-2 and 1-3 are less than 0.05(level of significance).

Therefore region 1-2 and 1-3 differs significantly in mean cost of importing.

d) from the above results , we can conclude that region 1 is significantly different from 2,3. The mean cost of importing for the region 1 is significantly less than mean cost of importing of other regions. Therefore we should choose the region 1 for foreign market entry.