Deck 22: International Franchising

Question 1

The largest U.S.franchise restaurant system in China is

A)McDonald's
B)KFC
C)Wendy's
D)Burger King

Answer 1

C
KFC now has over 1,600 outlets in China,and there are now more than 2,300 different franchise systems in China

Question 2

The most common restrictions levied by a government in international trade are?

A)quotas
B)tariffs
C)embargo
D)exchange controls

Answer 2

B
Tariffs-taxes levied by a government against specific imported products-are the most common restrictions in international trade

Question 3

The least favorite method of entering foreign markets is by investing in company-owned stores in foreign countries and this is called?

A)licensing
B)joint venture
C)direct investment
D)master franchising

Answer 3

C
The fourth method of entering foreign mar?kets is direct investment,by which the franchisor simply invests in company-owned stores in foreign countries

Question 4

One of the very few companies that has been successful in using the exact same product world-wide is:

A)Coca-Cola
B)McDonald's
C)Dairy Queen
D)Marriott Hotels

Question 5

A product strategy which involves changing the product to meet local conditions and consumer demands is called:

A)product conversion
B)product adaptation
C)straight product utilization
D)product invention

Question 6

Probably the main hindrance with expanding into foreign markets is:

A)high costs
B)government red tape
C)labor supply
D)lack of master franchisees

Question 7

The most common and best way of starting a franchise in a foreign country is through?

A)licensing
B)joint venture
C)direct investment
D)master franchisee

Question 8

The future for international franchising is:

A)bright and promising
B)promising,but uncertain
C)difficult,but rewarding
D)yet to be determined

Question 9

When developing franchise systems in a developing foreign country the first kind of franchises to develop in that country are:

A)domestic franchises
B)foreign retail franchises
C)domestic hospitality franchises
D)foreign hospitality franchises

Question 10

It is expected that by the year 2010,how many of all U.S.franchisors will have foreign outlets?

A)less than 25 %.
B)between 25 - 40%
C)between 41 - 55%
D)more than 55%