Question 1

Why would a licensor offer a license to a firm while insisting that it not use the brand name of the licensor?

Accepted Answer

The answer of Why would a licensor offer a license...

Question 2

Companies engaging in direct exporting have their own in-house exporting expertise.

Accepted Answer

A) True 
 B)False

Question 3

When quality cannot be guaranteed, it is preferable for the products produced under license not to carry the licensor's brand name.

Accepted Answer

A) True 
 B)False

Question 4

Labor costs in the United States are quite high, averaging around _________________________.

Accepted Answer

The answer of Labor costs in the United States are...

Question 5

Hourly compensation costs for production workers in manufacturing in Mexico are among the lowest in the world.

Accepted Answer

A) True 
 B)False

Question 6

Direct exporting means that the company sells its products to intermediaries in the company's home country who, in turn, sell the product overseas.

Accepted Answer

A) True 
 B)False

Question 7

Stihl, A German manufacturer of chainsaws, is selling products in Romania through a

Accepted Answer

A) franchise agreement. 
B) licensee. 
C) branch office. 
D) wholly-owned subsidiary.

Question 8

Unlike franchising, joint venture partners are unlikely to turn into competitors.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not true regarding licensing?

Accepted Answer

A) Licensing is a principal entry mode for the service industry. 
B) Licensing permits the company access to closed markets. 
C) Licensing may produce a viable competitor in the licensee. 
D) All of the above are true.

Question 10

Which of the following is NOT an example of a manufacturing alliance

Accepted Answer

A) Distribution alliance 
B) Technological alliance 
C) Engineering alliance 
D) Research and development alliance

Question 11

Which statement is false regarding joint ventures?

Accepted Answer

A) Joint ventures are a preferred international entry mode for emerging markets. 
B) When a joint venture has a state-owned enterprise as a partner it is assured instant local access. 
C) It is typical for joint ventures to take place between an international firm and a state-owned enterprise. 
D) Joint ventures are frequently discouraged by local governments because of the monopoly-like power that they wield.

Question 12

Outsourcing is an example of joint venture.

Accepted Answer

A) True 
 B)False

Question 13

Which entry mode below presents the highest control?

Accepted Answer

A) Licensing, 
B) Indirect exporting 
C) Franchising 
D) Wholly-owned subsidiary

Question 14

Which of the following is true about outsourcing?

Accepted Answer

A) The strategic use of outside resources to perform activities typically handled by internal staff 
B) It has been around for a long time 
C) Until now, it was restricted to technology 
D) All of the above are true about outsourcing

Question 15

Opel's two-year contract to market its automobiles to AOL customers is an example of a

Accepted Answer

A) franchise agreement 
B) marketing alliance 
C) distribution alliance 
D) joint venture

Question 16

Airbus is an example of a wholly-owned subsidiary operating in Europe.

Accepted Answer

A) True 
 B)False

Question 17

What type of activities can be outsourced?

Accepted Answer

A) Billing 
B) Customer service 
C) Technology 
D) All of the above can be outsourced

Question 18

Which of the following is true about outsourcing?

Accepted Answer

A) The strategic use of outside resources to perform activities typically handled by internal staff 
B) It has been around for a long time 
C) Until now, it was restricted to technology 
D) All of the above are true about outsourcing

Question 19

Because the local government frequently discourages the repatriation of profits, the international firm is likely to engage in _________________________, a method whereby the parent company of the international joint venture partner charges the joint venture for equipment and expertise.

Accepted Answer

The answer of Because the local government frequently discourages the...

Question 20

What are the assumptions behind a wholly-owned subsidiary?

Accepted Answer

The answer of What are the assumptions behind a wholly-owned...

Exam 8: Expansion Strategies and Entry Mode Selection

Why would a licensor offer a license to a firm while insisting that it not use the brand name of the licensor?

Companies engaging in direct exporting have their own in-house exporting expertise.

When quality cannot be guaranteed, it is preferable for the products produced under license not to carry the licensor's brand name.

Labor costs in the United States are quite high, averaging around _________________________.

Hourly compensation costs for production workers in manufacturing in Mexico are among the lowest in the world.

Direct exporting means that the company sells its products to intermediaries in the company's home country who, in turn, sell the product overseas.

Stihl, A German manufacturer of chainsaws, is selling products in Romania through a

Unlike franchising, joint venture partners are unlikely to turn into competitors.

Which of the following is not true regarding licensing?

Which of the following is NOT an example of a manufacturing alliance

Which statement is false regarding joint ventures?

Outsourcing is an example of joint venture.

Which entry mode below presents the highest control?

Which of the following is true about outsourcing?

Opel's two-year contract to market its automobiles to AOL customers is an example of a

Airbus is an example of a wholly-owned subsidiary operating in Europe.

What type of activities can be outsourced?

Which of the following is true about outsourcing?

Because the local government frequently discourages the repatriation of profits, the international firm is likely to engage in _________________________, a method whereby the parent company of the international joint venture partner charges the joint venture for equipment and expertise.

What are the assumptions behind a wholly-owned subsidiary?