Chat with AIExam 15: The Global Marketplace
In a global value delivery network, the first link, ________, moves company products from points of production to the borders of countries within which they are sold.
(33) 
VerifiedE
Which of the following is true of economic communities?
(31) VerifiedA
Explain management contracting with an example. What are its advantages and disadvantages?
(23) VerifiedManagement contracting is a type of joint venture. In short, the domestic firm provides the management know-how to a foreign company that supplies the capital. So the domestic firm exports management services rather than products. Hilton uses this arrangement in managing hotels around the world. For example, the hotel chain operates DoubleTree by Hilton hotels in countries ranging from the United Kingdom and Italy to Peru and Costa Rica, to China, Russia, and Tanzania. The properties are locally owned, but Hilton manages the hotel with its world-renowned hospitality expertise. Management contracting is a low-risk method of getting into a foreign market, and it yields income from the beginning. The arrangement is even more attractive if the contracting firm has an option to buy some share in the managed company later on. The arrangement is not sensible, however, if the company can put its scarce management talent to better uses or if it can make greater profits by undertaking the whole venture. Management contracting also prevents the company from setting up its own operations for a period of time.
Explain with examples how the political-legal environment of a country affects a global firm.
(27) ________ is a method of going global in which a company makes agreements with producers in the foreign market to produce its product or provide its service.
(33) Differentiate between standardized global marketing and adapted global marketing. Describe the advantages and disadvantages of each strategy.
(33) Price escalation is caused by transportation costs, tariffs, importer margin, wholesaler margin, and retailer margin. As a result, foreign prices are typically lower than domestic prices for comparable products.
(28) Which of the following is true of the World Trade Organization (WTO)?
(41) ________ is a method of entering a foreign market by associating with foreign companies to produce or market products or services.
(38) ________ consists of creating something new to meet the needs of consumers in a given country.
(29) Which of the following is an advantage of management contracting?
(33) What is the most likely disadvantage of direct investment for an investing company?
(33) The difference between direct and indirect exporting is that indirect exporting involves ________.
(35) Which of the following is an advantage of direct investment?
(32) A country in South America has large reserves of copper and tin. Mining forms the pillar of its economy. A major part of its revenue is generated from exporting these resources. This country is poor in many other ways. It is a good market for large equipment, tools, supplies, and trucks. Since there are many foreign residents in this country and a wealthy upper class, it is also a market for luxury goods. This country most likely has a(n)________ economy.
(37) Differentiate between industrializing economies and industrial economies. Give a few examples of each.
(31) The Internet is forcing companies toward more standardized international pricing.
(35) 
Filters
- Essay(0)
- Multiple Choice(0)
- Short Answer(0)
- True False(0)
- Matching(0)