Question 1

In a free enterprise system,the main objective of firms that invest abroad is to maximize _____ wealth.

Accepted Answer

The answer of In a free enterprise system,the main objective...

Question 2

The practice in which the parent firm is obligated to provide its brand name,specialized equipment and/or service,and sometimes to fund some startup costs,to another firm in return for an annual fee is known as _____.

Accepted Answer

A)  licensing 
B)  franchising 
C)  a foreign acquisition 
D)  a joint venture 
E)  an export-import business 
A)  licensing 
B)  franchising 
C)  a foreign acquisition 
D)  a joint venture 
E)  an export-import business

Question 3

A major reason why growth-oriented MNEs establish operations abroad is to diversify and minimize risk so that overall corporate cash flows and earnings will be relatively stable.

Accepted Answer

A) True 
 B)False

Question 4

The so-called BRIC countries consist of: _____.

Accepted Answer

A)  Brazil,Russia,India,and China 
B)  Belgium,Romania,Iran,and Canada 
C)  Bulgaria,Russia,Iraq,and Cuba 
D)  Brazil,Russia,Israel,and Chile 
E)  Belarus,Romania,Indonesia,and Colombia 
A)  Brazil,Russia,India,and China 
B)  Belgium,Romania,Iran,and Canada 
C)  Bulgaria,Russia,Iraq,and Cuba 
D)  Brazil,Russia,Israel,and Chile 
E)  Belarus,Romania,Indonesia,and Colombia

Question 5

Scenario - Boseman Clothier,Inc.
Boseman Clothier,Inc.has been in operation for over 75 years.It is based in South Carolina,USA and is a well-recognized name in the industry.It produces custom fitted men's suits that are in high demand throughout the world.The average cost of one of its suits is in excess of five thousand U.S.dollars.Boseman proudly states it has more customer orders than its one store can fill within the next six months.With growing demand from overseas,the company has recently decided to open operations in four foreign markets next year.
Boseman realizes the potential of this move will generate increased revenues for the company.One of the options it is contemplating is exploring forming an international joint venture.Boseman is also entertaining the thought of opening operations differently in each of the four new foreign markets.The company feels the use of different strategies may increase its odds of generating profits in each different market.
-Boseman Clothier,Inc.has decided to begin international operations using an international joint venture.Which one of the following is not one of the expectations from this type of entry into the foreign market arena?

Accepted Answer

A)  The joint venture partners will have shared company equity 
B)  The profits earned will be shared with the joint venture partner 
C)  The increased risk from operating abroad will be shared with the joint venture partner 
D)  Use of joint production and distribution will help to increase market share 
E)  Boseman will maintain all decision making rights in the foreign market 
A)  The joint venture partners will have shared company equity 
B)  The profits earned will be shared with the joint venture partner 
C)  The increased risk from operating abroad will be shared with the joint venture partner 
D)  Use of joint production and distribution will help to increase market share 
E)  Boseman will maintain all decision making rights in the foreign market

Question 6

A challenge faced by strategic alliances is that

Accepted Answer

A)  they are illegal in most international markets. 
B)  they involve the creation of a separate entity with joint ownership. 
C)  environmental sustainability is difficult to achieve. 
D)  any member could prematurely quit the alliance. 
E)  they are not especially focused on enhancing revenues. 
A)  they are illegal in most international markets. 
B)  they involve the creation of a separate entity with joint ownership. 
C)  environmental sustainability is difficult to achieve. 
D)  any member could prematurely quit the alliance. 
E)  they are not especially focused on enhancing revenues.

Question 7

Brazil is one of the world's lowest cost producers of ethanol and soybeans.Japanese corporations have heavily invested in Brazil to lease large tracts of land to grow soybeans for export to Japan,where they are used to derive products such as soy sauce and chicken feed.These Japanese companies are cutting costs by _____.

Accepted Answer

A)  minimizing factor input costs 
B)  generating revenue 
C)  acquiring other companies 
D)  exploring joint ventures 
E)  reacting to exchange rate movements 
A)  minimizing factor input costs 
B)  generating revenue 
C)  acquiring other companies 
D)  exploring joint ventures 
E)  reacting to exchange rate movements

Question 8

Which of the following is NOT true about licensing?

Accepted Answer

A)  It involves slightly more risk to the licensee than licensor. 
B)  The license fee could be based on a percentage of final sales revenue of the product,or the number of units sold. 
C)  When a product is licensed,the foreign partner will use the licensor's patented technology as agreed to manufacture and sell products that meet the licensor's standards. 
D)  Unscrupulous licensees have been known to manufacture licensed products and sell them under different brand names. 
E)  Licensing is the practice in which a company or individual provides the foreign partner with the technology to manufacture and sell products or services in a target country for an annual fee 
A)  It involves slightly more risk to the licensee than licensor. 
B)  The license fee could be based on a percentage of final sales revenue of the product,or the number of units sold. 
C)  When a product is licensed,the foreign partner will use the licensor's patented technology as agreed to manufacture and sell products that meet the licensor's standards. 
D)  Unscrupulous licensees have been known to manufacture licensed products and sell them under different brand names. 
E)  Licensing is the practice in which a company or individual provides the foreign partner with the technology to manufacture and sell products or services in a target country for an annual fee

Question 9

Strategic alliances are primarily aimed at enhancing goodwill.

Accepted Answer

A) True 
 B)False

Question 10

Scenario - Boseman Clothier,Inc.
Boseman Clothier,Inc.has been in operation for over 75 years.It is based in South Carolina,USA and is a well-recognized name in the industry.It produces custom fitted men's suits that are in high demand throughout the world.The average cost of one of its suits is in excess of five thousand U.S.dollars.Boseman proudly states it has more customer orders than its one store can fill within the next six months.With growing demand from overseas,the company has recently decided to open operations in four foreign markets next year.
Boseman realizes the potential of this move will generate increased revenues for the company.One of the options it is contemplating is exploring forming an international joint venture.Boseman is also entertaining the thought of opening operations differently in each of the four new foreign markets.The company feels the use of different strategies may increase its odds of generating profits in each different market.
-Boseman is also considering making the entry into the international market by engaging in foreign direct investments in the nations.Which one of the following is not a true statement regarding foreign direct investment from the host country's perspective?

Accepted Answer

A)  Significant financial inflows always result from engaging in foreign direct investment. 
B)  Foreign direct investment can create new jobs and can generate tax revenues for governments 
C)  A concern of the local governments in host countries is the lack of corporate social responsibility 
D)  There is the potential for exploitation of human labor within certain countries 
E)  These investments may take the form of plants,buildings,or inventories 
A)  Significant financial inflows always result from engaging in foreign direct investment. 
B)  Foreign direct investment can create new jobs and can generate tax revenues for governments 
C)  A concern of the local governments in host countries is the lack of corporate social responsibility 
D)  There is the potential for exploitation of human labor within certain countries 
E)  These investments may take the form of plants,buildings,or inventories

Question 11

_____ advantages refer to the mode of entry abroad.

Accepted Answer

A)  Ownership,or firm specific 
B)  Locational,or country-specific 
C)  Internalization 
D)  Externalized 
E)  Environmental 
A)  Ownership,or firm specific 
B)  Locational,or country-specific 
C)  Internalization 
D)  Externalized 
E)  Environmental

Question 12

The second stage of the product life cycle is _____.

Accepted Answer

A)  decline 
B)  introduction 
C)  growth 
D)  maturity 
E)  development 
A)  decline 
B)  introduction 
C)  growth 
D)  maturity 
E)  development

Question 13

Scenario - Boseman Clothier,Inc.
Boseman Clothier,Inc.has been in operation for over 75 years.It is based in South Carolina,USA and is a well-recognized name in the industry.It produces custom fitted men's suits that are in high demand throughout the world.The average cost of one of its suits is in excess of five thousand U.S.dollars.Boseman proudly states it has more customer orders than its one store can fill within the next six months.With growing demand from overseas,the company has recently decided to open operations in four foreign markets next year.
Boseman realizes the potential of this move will generate increased revenues for the company.One of the options it is contemplating is exploring forming an international joint venture.Boseman is also entertaining the thought of opening operations differently in each of the four new foreign markets.The company feels the use of different strategies may increase its odds of generating profits in each different market.
-Boseman Clothier,Inc.has indicated it would like to use different entry strategies for each of the four markets it plans to enter.Which of the following would not be considered a benefit from using licensing in the other foreign markets it plans to enter?

Accepted Answer

A)  This type of relationship is expected to last for years so there must be a high level of trust between the companies involved 
B)  Boseman will be subjected to the least amount of risk with this type of entry into a foreign market 
C)  Boseman is expected to provide the foreign partner with the process necessary to produce its highly desired suits 
D)  Boseman's partner is expected to pay an annual license fee to the company for the use of its production process and the ability to sell its products 
E)  Boseman does not have to have financial resources to open new production facilities within the foreign country 
A)  This type of relationship is expected to last for years so there must be a high level of trust between the companies involved 
B)  Boseman will be subjected to the least amount of risk with this type of entry into a foreign market 
C)  Boseman is expected to provide the foreign partner with the process necessary to produce its highly desired suits 
D)  Boseman's partner is expected to pay an annual license fee to the company for the use of its production process and the ability to sell its products 
E)  Boseman does not have to have financial resources to open new production facilities within the foreign country

Question 14

In a free enterprise system,the overriding objective of firms wanting to invest abroad is to _____.

Accepted Answer

A)  acquire other companies 
B)  make a brand name 
C)  gain market share 
D)  use joint production and sales distribution networks to increase revenue 
E)  maximize shareholder wealth 
A)  acquire other companies 
B)  make a brand name 
C)  gain market share 
D)  use joint production and sales distribution networks to increase revenue 
E)  maximize shareholder wealth

Question 15

According to the text,which of the following entry strategies has the lowest degree of risk?

Accepted Answer

A)  Licensing 
B)  Wholly-owned foreign subsidiary 
C)  Foreign acquisition 
D)  Joint venture 
E)  Strategic alliance 
A)  Licensing 
B)  Wholly-owned foreign subsidiary 
C)  Foreign acquisition 
D)  Joint venture 
E)  Strategic alliance

Question 16

Of the following,which is NOT an emerging-market?

Accepted Answer

A)  South Africa 
B)  India 
C)  Australia 
D)  Brazil 
E)  Russia 
A)  South Africa 
B)  India 
C)  Australia 
D)  Brazil 
E)  Russia

Question 17

A business that is jointly owned and operated by two or more firms that pool their resources to penetrate host country markets,generate and split profits,and share commercial risk is called a(n)_____.

Accepted Answer

A)  license 
B)  franchise 
C)  foreign acquisition 
D)  strategic alliance 
E)  international joint venture 
A)  license 
B)  franchise 
C)  foreign acquisition 
D)  strategic alliance 
E)  international joint venture

Question 18

Of the following,which is NOT true about the export-import business?

Accepted Answer

A)  Many employees,often 100+,are required for an export-import business to operate. 
B)  The export-import business is a relatively low-risk operation. 
C)  The export-import business involves penetrating foreign markets or importing merchandise at competitive prices for domestic consumption. 
D)  The opportunity to participate in export-import business is significant. 
E)  Government agencies offer specialized seminars and programs on how to identify markets overseas and sell merchandise there. 
A)  Many employees,often 100+,are required for an export-import business to operate. 
B)  The export-import business is a relatively low-risk operation. 
C)  The export-import business involves penetrating foreign markets or importing merchandise at competitive prices for domestic consumption. 
D)  The opportunity to participate in export-import business is significant. 
E)  Government agencies offer specialized seminars and programs on how to identify markets overseas and sell merchandise there.

Question 19

General Electric,Microsoft,Sony,Toyota,and BMW are examples of _____.

Accepted Answer

A)  subsidiaries 
B)  multinational enterprises 
C)  foreign acquisitions 
D)  strategic alliances 
E)  acquisitions 
A)  subsidiaries 
B)  multinational enterprises 
C)  foreign acquisitions 
D)  strategic alliances 
E)  acquisitions

Question 20

The first stage of the product life cycle is _____.

Accepted Answer

A)  decline 
B)  introduction 
C)  growth 
D)  maturity 
E)  development 
A)  decline 
B)  introduction 
C)  growth 
D)  maturity 
E)  development

In a free enterprise system,the main objective of firms that invest abroad is to maximize _____ wealth.

The practice in which the parent firm is obligated to provide its brand name,specialized equipment and/or service,and sometimes to fund some startup costs,to another firm in return for an annual fee is known as _____.

A major reason why growth-oriented MNEs establish operations abroad is to diversify and minimize risk so that overall corporate cash flows and earnings will be relatively stable.

The so-called BRIC countries consist of: _____.

A challenge faced by strategic alliances is that

Which of the following is NOT true about licensing?

Strategic alliances are primarily aimed at enhancing goodwill.

_____ advantages refer to the mode of entry abroad.

The second stage of the product life cycle is _____.

In a free enterprise system,the overriding objective of firms wanting to invest abroad is to _____.

According to the text,which of the following entry strategies has the lowest degree of risk?

Of the following,which is NOT an emerging-market?

A business that is jointly owned and operated by two or more firms that pool their resources to penetrate host country markets,generate and split profits,and share commercial risk is called a(n)_____.

Of the following,which is NOT true about the export-import business?

General Electric,Microsoft,Sony,Toyota,and BMW are examples of _____.

The first stage of the product life cycle is _____.

The Rise of Globalization

The Evolution of International Business

Regional Economic Integration

The International Flow of Funds and Exchange Rates

The Cultural Environment of Global Business

The Legal,economic and Political Environment of Global Business

Entry Strategies in Global Business

Control of Global Business

The Organization of Global Business

Global Human Resource Management

Global Marketing

Global Operations and Supply-Chain Management

Global Financial Management

Global Accounting and Taxation

Filters

Exam 9: Corruption and Ethics in Global Business

In a free enterprise system,the main objective of firms that invest abroad is to maximize _____ wealth.

The practice in which the parent firm is obligated to provide its brand name,specialized equipment and/or service,and sometimes to fund some startup costs,to another firm in return for an annual fee is known as _____.

A major reason why growth-oriented MNEs establish operations abroad is to diversify and minimize risk so that overall corporate cash flows and earnings will be relatively stable.

The so-called BRIC countries consist of: _____.

A challenge faced by strategic alliances is that

Which of the following is NOT true about licensing?

Strategic alliances are primarily aimed at enhancing goodwill.

_____ advantages refer to the mode of entry abroad.

The second stage of the product life cycle is _____.

In a free enterprise system,the overriding objective of firms wanting to invest abroad is to _____.

According to the text,which of the following entry strategies has the lowest degree of risk?

Of the following,which is NOT an emerging-market?

A business that is jointly owned and operated by two or more firms that pool their resources to penetrate host country markets,generate and split profits,and share commercial risk is called a(n)_____.

Of the following,which is NOT true about the export-import business?

General Electric,Microsoft,Sony,Toyota,and BMW are examples of _____.

The first stage of the product life cycle is _____.

The Rise of Globalization

The Evolution of International Business

Regional Economic Integration

The International Flow of Funds and Exchange Rates

The Cultural Environment of Global Business

The Legal,economic and Political Environment of Global Business

Entry Strategies in Global Business

Control of Global Business

The Organization of Global Business

Global Human Resource Management

Global Marketing

Global Operations and Supply-Chain Management

Global Financial Management

Global Accounting and Taxation

Filters