Question 1

Wine consumption in China has been at an annual growth rate of ________.

Accepted Answer

A)  2 percent 
B)  20 percent 
C)  200 percent 
D)  2,000 percent 
A)  2 percent 
B)  20 percent 
C)  200 percent 
D)  2,000 percent

Question 2

Which of the following is a method for foreign direct investment?

Accepted Answer

A)  participating in business process outsourcing 
B)  buying existing assets in a foreign country 
C)  exporting services and products 
D)  entering licensing agreements 
A)  participating in business process outsourcing 
B)  buying existing assets in a foreign country 
C)  exporting services and products 
D)  entering licensing agreements

Question 3

Gameware recently entered the German market. Gameware incurred significant costs associated with setting up a business operation in Frankfurt, transferring managers to Germany, and shipping equipment to the German facility. Gameware's expenses are best described as ________.

Accepted Answer

A)  opportunity costs 
B)  setup costs 
C)  direct costs 
D)  indirect costs 
A)  opportunity costs 
B)  setup costs 
C)  direct costs 
D)  indirect costs

Question 4

A firm specializing in high-priced, higher-quality goods will most likely find a high-income market more attractive than a low-income one.

Accepted Answer

A) True 
 B)False

Question 5

Assessing market potential is the second step in the process of foreign market analysis.

Accepted Answer

A) True 
 B)False

Question 6

The Mitsubishi Corporation is a firm that is directly engaged in importing and exporting a wide variety of goods for its own account and is a part of a keiretsu system. What type of export intermediary is it?

Accepted Answer

A)  export management company 
B)  sogo shosha 
C)  freight forwarder 
D)  export and import broker 
A)  export management company 
B)  sogo shosha 
C)  freight forwarder 
D)  export and import broker

Question 7

What types of government actions may encourage licensing?

Accepted Answer

The use of licensing may be en

Question 8

________ are those factors that affect the desirability of host country production relative to home country production.

Accepted Answer

A)  Ownership advantages 
B)  Location advantages 
C)  National competitive advantages 
D)  Internalization advantages 
A)  Ownership advantages 
B)  Location advantages 
C)  National competitive advantages 
D)  Internalization advantages

Question 9

The informational, political, and cultural disadvantages that foreign firms face when trying to compete against local firms in the host country market are referred to as ________.

Accepted Answer

A)  opportunity costs 
B)  liability of foreignness 
C)  internalization disadvantages 
D)  the burden of internationalization 
A)  opportunity costs 
B)  liability of foreignness 
C)  internalization disadvantages 
D)  the burden of internationalization

Question 10

What is a common disadvantage of using a greenfield strategy?

Accepted Answer

A)  paying high tariffs 
B)  using outdated equipment 
C)  taking over existing debts 
D)  complying with local regulations 
A)  paying high tariffs 
B)  using outdated equipment 
C)  taking over existing debts 
D)  complying with local regulations

Question 11

Royalties are determined most commonly as a percentage of the sales of the licensed products.

Accepted Answer

A) True 
 B)False

Question 12

________ are tangible or intangible resources owned by a firm which grant it a competitive advantage over its industry rivals.

Accepted Answer

A)  Ownership advantages 
B)  Location advantages 
C)  Internalization advantages 
D)  Competitive advantages 
A)  Ownership advantages 
B)  Location advantages 
C)  Internalization advantages 
D)  Competitive advantages

Question 13

Which of the following is an advantage of exporting?

Accepted Answer

A)  vulnerability to tariffs 
B)  logistical complexities 
C)  potential conflicts with distributors 
D)  access to new markets 
A)  vulnerability to tariffs 
B)  logistical complexities 
C)  potential conflicts with distributors 
D)  access to new markets

Question 14

What is the meaning of ownership advantages? Give an example.

Accepted Answer

Ownership advantages are tangible or int

Question 15

The ________ acts as a foreign sales department for domestic producers by selling those firms' goods in foreign markets.

Accepted Answer

A)  manufacturers' agent 
B)  export and import broker 
C)  freight forwarder 
D)  manufacturers' export agent 
A)  manufacturers' agent 
B)  export and import broker 
C)  freight forwarder 
D)  manufacturers' export agent

Question 16

What are the steps involved in foreign market analysis?

Accepted Answer

When assessing foreign markets, firms mu

Question 17

What is the difference between international licensing and international franchising? What are the advantages of each entry mode?

Accepted Answer

International licensing occurs when one

Question 18

British Airways has an arrangement with a state-owned airline headquartered in Brazil. British Airways provides the Brazilian airline with advice on reservation services and scheduling. Which entry mode for international business is used by British Airways?

Accepted Answer

A)  management contract 
B)  turnkey project 
C)  greenfield strategy 
D)  licensing 
A)  management contract 
B)  turnkey project 
C)  greenfield strategy 
D)  licensing

Question 19

Where are the world's most important international trading companies located?

Accepted Answer

A)  Germany 
B)  Japan 
C)  Canada 
D)  China 
A)  Germany 
B)  Japan 
C)  Canada 
D)  China

Question 20

Trade policies usually have little effect on a firm's choice of entry mode.

Accepted Answer

A) True 
 B)False

Wine consumption in China has been at an annual growth rate of ________.

Which of the following is a method for foreign direct investment?

Gameware recently entered the German market. Gameware incurred significant costs associated with setting up a business operation in Frankfurt, transferring managers to Germany, and shipping equipment to the German facility. Gameware's expenses are best described as ________.

A firm specializing in high-priced, higher-quality goods will most likely find a high-income market more attractive than a low-income one.

Assessing market potential is the second step in the process of foreign market analysis.

The Mitsubishi Corporation is a firm that is directly engaged in importing and exporting a wide variety of goods for its own account and is a part of a keiretsu system. What type of export intermediary is it?

What types of government actions may encourage licensing?

________ are those factors that affect the desirability of host country production relative to home country production.

The informational, political, and cultural disadvantages that foreign firms face when trying to compete against local firms in the host country market are referred to as ________.

What is a common disadvantage of using a greenfield strategy?

Royalties are determined most commonly as a percentage of the sales of the licensed products.

________ are tangible or intangible resources owned by a firm which grant it a competitive advantage over its industry rivals.

Which of the following is an advantage of exporting?

What is the meaning of ownership advantages? Give an example.

The ________ acts as a foreign sales department for domestic producers by selling those firms' goods in foreign markets.

What are the steps involved in foreign market analysis?

What is the difference between international licensing and international franchising? What are the advantages of each entry mode?

British Airways has an arrangement with a state-owned airline headquartered in Brazil. British Airways provides the Brazilian airline with advice on reservation services and scheduling. Which entry mode for international business is used by British Airways?

Where are the world's most important international trading companies located?

Trade policies usually have little effect on a firm's choice of entry mode.

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters

Exam 12: Strategies for Analyzing and Entering Foreign Markets

Wine consumption in China has been at an annual growth rate of ________.

Which of the following is a method for foreign direct investment?

Gameware recently entered the German market. Gameware incurred significant costs associated with setting up a business operation in Frankfurt, transferring managers to Germany, and shipping equipment to the German facility. Gameware's expenses are best described as ________.

A firm specializing in high-priced, higher-quality goods will most likely find a high-income market more attractive than a low-income one.

Assessing market potential is the second step in the process of foreign market analysis.

The Mitsubishi Corporation is a firm that is directly engaged in importing and exporting a wide variety of goods for its own account and is a part of a keiretsu system. What type of export intermediary is it?

What types of government actions may encourage licensing?

________ are those factors that affect the desirability of host country production relative to home country production.

The informational, political, and cultural disadvantages that foreign firms face when trying to compete against local firms in the host country market are referred to as ________.

What is a common disadvantage of using a greenfield strategy?

Royalties are determined most commonly as a percentage of the sales of the licensed products.

________ are tangible or intangible resources owned by a firm which grant it a competitive advantage over its industry rivals.

Which of the following is an advantage of exporting?

What is the meaning of ownership advantages? Give an example.

The ________ acts as a foreign sales department for domestic producers by selling those firms' goods in foreign markets.

What are the steps involved in foreign market analysis?

What is the difference between international licensing and international franchising? What are the advantages of each entry mode?

British Airways has an arrangement with a state-owned airline headquartered in Brazil. British Airways provides the Brazilian airline with advice on reservation services and scheduling. Which entry mode for international business is used by British Airways?

Where are the world's most important international trading companies located?

Trade policies usually have little effect on a firm's choice of entry mode.

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters