Question 1

Independent wholesalers that purchase products from exporters for resale at a profit are known as ________.

Accepted Answer

A)  national franchisors 
B)  merchant distributors 
C)  foreign intermediaries 
D)  sales representatives 
A)  national franchisors 
B)  merchant distributors 
C)  foreign intermediaries 
D)  sales representatives B

Question 2

Customs brokers help international firms to finance their exporting costs.

Accepted Answer

A) True 
 B)False  False

Question 3

Developing economies often enter into build-own-transfer agreements with ________.

Accepted Answer

A)  joint venture entities 
B)  turnkey contractors 
C)  MNEs 
D)  SMEs 
A)  joint venture entities 
B)  turnkey contractors 
C)  MNEs 
D)  SMEs B

Question 4

In a short essay, explain why SMEs now comprise the majority of firms active in international business.

Accepted Answer

Small and medium-size enterprises, SMEs,

Question 5

A tax accountant would most likely be involved as a consultant in which role?

Accepted Answer

A)  multi-country operations 
B)  preparing internal revenue documentation 
C)  foreign tax obligations 
D)  all of the above 
A)  multi-country operations 
B)  preparing internal revenue documentation 
C)  foreign tax obligations 
D)  all of the above

Question 6

Which of the following is a benefit of licensing agreements?

Accepted Answer

A)  home-based globalization 
B)  proven business models 
C)  short-term royalty fees 
D)  minimal marketing requirements 
A)  home-based globalization 
B)  proven business models 
C)  short-term royalty fees 
D)  minimal marketing requirements

Question 7

Shareholders Meeting 
A senior manager at Hudson Motors has presented top management at his firm with his manufacturing strategy aimed at improving sales and profits. Based in Kentucky, Hudson Motors has always used American-made parts for its automobiles. However, sales and profits have slumped miserably over the past three years. The Hudson Motors senior manager asks top management to approve his strategy of internationalizing the company's value chain.
-Which of the following benefits does the CEO most likely cite as the rationale for purchasing automobile components from overseas suppliers?

Accepted Answer

A)  improved quality 
B)  reduced shipping expenses 
C)  lower costs 
D)  technological advances 
A)  improved quality 
B)  reduced shipping expenses 
C)  lower costs 
D)  technological advances

Question 8

Super Cola 
U.S.-based Super Cola, one of the top five cola manufacturers, has previously attempted entering the Asian beverage market with little success. Lacking the name recognition of its competitors, Super Cola was unable to gain market share and ceased shipping its products overseas after six months. Super Cola realizes that the large Asian market would be extremely profitable, but the company requires a new strategy. Consultants hired by Super Cola propose two different methods for entering the market: licensing and franchising.
-If Super Cola enters a licensing agreement with Tsang Cola, what is the benefit for Super Cola?

Accepted Answer

A)  Super Cola would learn the marketing techniques used by cola manufacturers in Asia, and would simulate them after the agreement had expired. 
B)  Super Cola would be represented on the Tsang board of directors and would oversee Tsang operations in Asia and the U.S. 
C)  Super Cola would learn the manufacturing techniques used by Tsang and use the same methods in the U.S. 
D)  Super Cola would receive royalties from beverage sales and an entry into the Asian market. 
A)  Super Cola would learn the marketing techniques used by cola manufacturers in Asia, and would simulate them after the agreement had expired. 
B)  Super Cola would be represented on the Tsang board of directors and would oversee Tsang operations in Asia and the U.S. 
C)  Super Cola would learn the manufacturing techniques used by Tsang and use the same methods in the U.S. 
D)  Super Cola would receive royalties from beverage sales and an entry into the Asian market.

Question 9

By using independent foreign distributors, exporters are able to make valuable inroads with foreign markets in an inexpensive manner.

Accepted Answer

A) True 
 B)False

Question 10

Commercial banks facilitate the operations of international businesses by doing all of the following except ________.

Accepted Answer

A)  facilitate government financing to SMEs 
B)  transfer funds to individuals and foreign banks 
C)  gather credit information about foreign buyers 
D)  provide financing to buyers and sellers 
A)  facilitate government financing to SMEs 
B)  transfer funds to individuals and foreign banks 
C)  gather credit information about foreign buyers 
D)  provide financing to buyers and sellers

Question 11

Internet-based international intermediaries are of particular advantage to companies that ________.

Accepted Answer

A)  rely heavily on local intermediaries 
B)  have large and established international operations 
C)  have limited resources 
D)  have many retail stores 
A)  rely heavily on local intermediaries 
B)  have large and established international operations 
C)  have limited resources 
D)  have many retail stores

Question 12

In a short essay, identify the tasks of distribution channel intermediaries when they are employed by focal firms. Why do exporters rely on intermediaries?

Accepted Answer

Distribution channel intermediaries are

Question 13

Which stage of the international value chain is represented by the assembly of a Dell computer in Malaysia?

Accepted Answer

A)  research and development 
B)  sourcing 
C)  production 
D)  after-sales service 
A)  research and development 
B)  sourcing 
C)  production 
D)  after-sales service

Question 14

All of the following are characterized as customers except ________.

Accepted Answer

A)  governments 
B)  retail businesses 
C)  non-profit organizations 
D)  freight carriers 
A)  governments 
B)  retail businesses 
C)  non-profit organizations 
D)  freight carriers

Question 15

Rationalizing the value chain means sourcing components in countries that have what advantage?

Accepted Answer

A)  cheapest shipping 
B)  lowest cost 
C)  favorable markets 
D)  facilitators 
A)  cheapest shipping 
B)  lowest cost 
C)  favorable markets 
D)  facilitators

Question 16

In a short essay, discuss the reason that exporting firms often use trading companies as intermediaries.

Accepted Answer

For exporting firms that prefer to minim

Question 17

Many international corporations turn to transportation specialists to handle distribution and storage.

Accepted Answer

A) True 
 B)False

Question 18

Governments in some advanced economies maintain significant ownership of companies in certain industries.

Accepted Answer

A) True 
 B)False

Question 19

Born global firms do business internationally within a few years after their founding.

Accepted Answer

A) True 
 B)False

Question 20

Small focal firms are typically involved in the realm of ________.

Accepted Answer

A)  specializing 
B)  importing 
C)  manufacturing 
D)  investing 
A)  specializing 
B)  importing 
C)  manufacturing 
D)  investing

Independent wholesalers that purchase products from exporters for resale at a profit are known as ________.

Customs brokers help international firms to finance their exporting costs.

Developing economies often enter into build-own-transfer agreements with ________.

In a short essay, explain why SMEs now comprise the majority of firms active in international business.

A tax accountant would most likely be involved as a consultant in which role?

Which of the following is a benefit of licensing agreements?

By using independent foreign distributors, exporters are able to make valuable inroads with foreign markets in an inexpensive manner.

Commercial banks facilitate the operations of international businesses by doing all of the following except ________.

Internet-based international intermediaries are of particular advantage to companies that ________.

In a short essay, identify the tasks of distribution channel intermediaries when they are employed by focal firms. Why do exporters rely on intermediaries?

Which stage of the international value chain is represented by the assembly of a Dell computer in Malaysia?

All of the following are characterized as customers except ________.

Rationalizing the value chain means sourcing components in countries that have what advantage?

In a short essay, discuss the reason that exporting firms often use trading companies as intermediaries.

Many international corporations turn to transportation specialists to handle distribution and storage.

Governments in some advanced economies maintain significant ownership of companies in certain industries.

Born global firms do business internationally within a few years after their founding.

Small focal firms are typically involved in the realm of ________.

What Is International Business

Theories of International Trade and Investment

Culture and Ethics in International Business

Political and Legal Systems in International Business

The International Monetary Environment and Financial Management in the Global Firm

Emerging Markets, Developing Economies, and Advanced Economies

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Countertrade

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Global Sourcing

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters

Exam 3: Organizational Participants That Make International Business Happen

Independent wholesalers that purchase products from exporters for resale at a profit are known as ________.

Customs brokers help international firms to finance their exporting costs.

Developing economies often enter into build-own-transfer agreements with ________.

In a short essay, explain why SMEs now comprise the majority of firms active in international business.

A tax accountant would most likely be involved as a consultant in which role?

Which of the following is a benefit of licensing agreements?

By using independent foreign distributors, exporters are able to make valuable inroads with foreign markets in an inexpensive manner.

Commercial banks facilitate the operations of international businesses by doing all of the following except ________.

Internet-based international intermediaries are of particular advantage to companies that ________.

In a short essay, identify the tasks of distribution channel intermediaries when they are employed by focal firms. Why do exporters rely on intermediaries?

Which stage of the international value chain is represented by the assembly of a Dell computer in Malaysia?

All of the following are characterized as customers except ________.

Rationalizing the value chain means sourcing components in countries that have what advantage?

In a short essay, discuss the reason that exporting firms often use trading companies as intermediaries.

Many international corporations turn to transportation specialists to handle distribution and storage.

Governments in some advanced economies maintain significant ownership of companies in certain industries.

Born global firms do business internationally within a few years after their founding.

Small focal firms are typically involved in the realm of ________.

What Is International Business

Theories of International Trade and Investment

Culture and Ethics in International Business

Political and Legal Systems in International Business

The International Monetary Environment and Financial Management in the Global Firm

Emerging Markets, Developing Economies, and Advanced Economies

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Countertrade

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Global Sourcing

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters