Question 1

Franklin Carpets engages in indirect exporting, so the firm sells its carpets to a(n)________.

Accepted Answer

A)  domestic customer who then sells the carpets to a foreign customer 
B)  foreign customer who then sells the carpets to a domestic customer 
C)  affiliated company located in a foreign country 
D)  foreign customer through e-commerce 
A)  domestic customer who then sells the carpets to a foreign customer 
B)  foreign customer who then sells the carpets to a domestic customer 
C)  affiliated company located in a foreign country 
D)  foreign customer through e-commerce

Question 2

Bechtel, a construction and engineering firm, has a contract with the Indian government to expand the airport in New Delhi. Bechtel will design, construct, and equip the airport before turning the facility over to the Indian government upon completion. Which entry mode for international business is used by Bechtel?

Accepted Answer

A)  B-O-T project 
B)  turnkey project 
C)  contract manufacturing 
D)  foreign direct investment 
A)  B-O-T project 
B)  turnkey project 
C)  contract manufacturing 
D)  foreign direct investment

Question 3

________ refer to expenses incurred by the firm as it enters a new foreign market.

Accepted Answer

A)  Indirect costs 
B)  Direct costs 
C)  Opportunity costs 
D)  Variable costs 
A)  Indirect costs 
B)  Direct costs 
C)  Opportunity costs 
D)  Variable costs

Question 4

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 5

International franchising is among the fastest growing forms of international business.

Accepted Answer

A) True 
 B)False

Question 6

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 7

________ are those that pull a firm into foreign markets as a result of opportunities available there.

Accepted Answer

A)  Reactive motivations 
B)  Proactive motivations 
C)  Opportunity motivations 
D)  Avoidance motivations 
A)  Reactive motivations 
B)  Proactive motivations 
C)  Opportunity motivations 
D)  Avoidance motivations

Question 8

Which of the following statements about Webb-Pomerene associations is most likely true?

Accepted Answer

A)  The number of Webb-Pomerene associations is growing due to globalization. 
B)  Most Webb-Pomerene associations facilitate trade in the garment industry. 
C)  Webb-Pomerene associations participate in marketing and promotion. 
D)  Webb-Pomerene associations are unable to negotiate contracts. 
A)  The number of Webb-Pomerene associations is growing due to globalization. 
B)  Most Webb-Pomerene associations facilitate trade in the garment industry. 
C)  Webb-Pomerene associations participate in marketing and promotion. 
D)  Webb-Pomerene associations are unable to negotiate contracts.

Question 9

Liability of foreignness refers to the internalization advantages that make it desirable to produce a good or service in-house.

Accepted Answer

A) True 
 B)False

Question 10

What are the five primary types of entry modes for foreign markets? What types of risks should international firms consider before entering a foreign market?

Accepted Answer

The five primary ways to enter a foreign

Franklin Carpets engages in indirect exporting, so the firm sells its carpets to a(n)________.

________ refer to expenses incurred by the firm as it enters a new foreign market.

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?

International franchising is among the fastest growing forms of international business.

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 ________.

________ are those that pull a firm into foreign markets as a result of opportunities available there.

Which of the following statements about Webb-Pomerene associations is most likely true?

Liability of foreignness refers to the internalization advantages that make it desirable to produce a good or service in-house.

What are the five primary types of entry modes for foreign markets? What types of risks should international firms consider before entering a foreign market?

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, Accounting, 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

Franklin Carpets engages in indirect exporting, so the firm sells its carpets to a(n)________.

________ refer to expenses incurred by the firm as it enters a new foreign market.

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?

International franchising is among the fastest growing forms of international business.

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 ________.

________ are those that pull a firm into foreign markets as a result of opportunities available there.

Which of the following statements about Webb-Pomerene associations is most likely true?

Liability of foreignness refers to the internalization advantages that make it desirable to produce a good or service in-house.

What are the five primary types of entry modes for foreign markets? What types of risks should international firms consider before entering a foreign market?

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, Accounting, 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