Deck 5: International Agribusiness

Question 1

A benefit a company works toward in globalization is name or -------------------------------.

Answer 1

brand recognition

Question 2

Agricultural exports are composed of two categories: ----------------- and --------------.

Answer 2

high valueproducts bulk commodities

Question 3

------------------------------- is a set of socially transmitted behaviors, arts, beliefs, speech, and all other products of human work and thought that characterize a particular population.

Answer 3

Culture

Question 4

------------------------------- are direct investments by a firm into a particular country.

Question 5

One method used to enter an international market is called an -------------------------------which is to purchase a firm or a controlling interest in a firm in another country.

Question 6

The benefit(s) firms receive from doing business internationally include

A) Take advantage of scale economies
B) Capture benefits of a global brand
C) Reduce risk by diversifying across markets
D) All of the above

Question 7

In 1947, an international organization was established to reduce trade barriers through multilateral trade negotiations. The organization is known as

A) EU
B) WTO
C) NAFTA
D) None of the above

Question 8

When a firm handles the details of exporting their product it is called

A) Joint exporting
B) Indirect exporting
C) Direct exporting
D) Outsource exporting

Question 9

A ______ ______ is a form of strategic alliance that involves two or more firms that share resources in research, production, marketing, or financing, as well as costs and risks.

A) Acquisition
B) Joint venture
C) Greenfield investments
D) None of the above

Question 10

Advantage(s) of exporting over the other methods of entry into another country is (are)

A) Increased speed in reaching the global market
B) Opportunity to manage trade barriers
C) Control over pricing
D) Control over distribution

Question 11

Example(s) of high-value products would include

A) Fresh fruit
B) Beverages
C) Frozen dinners
D) All of the above

Question 12

Adjustments by international agribusiness firms are generally made in the area of

A) Product adaptations
B) Individual changes
C) Institutional adaptations
D) All of the above

Question 13

Example(s) of a regional trade group would be

A) APEC
B) EU
C) ASEAN
D) All of the above

Question 14

Using a trading company or an expert management company to handle the logistics of exporting is called ________.

A) Indirect
B) Licensing
C) Direct investment
D) Joint venture

Question 15

An example of a high-value product is

A) Wheat
B) Corn
C) Soybeans
D) None of the above

Question 16

A factor that is opening the doors of world markets for smaller businesses is technology.

Question 17

It has been said that usually about 70 percent of a message is verbal.

Question 18

The value of relationships in a culture is most easily viewed by the importance of the business associations of the firm.

Question 19

When dealing in the area of international business, you should always expect foreign clients to be on time for appointments.

Question 20

Accounting methods for noncurrent assets, such as machinery, are standardized across the world to facilitate trade.

Question 21

Sanitary and phytosanitary regulations are intended to protect human, animal, or plant life or health.

Question 22

A disadvantage of licensing is that a licensor could find its brand image hurt if the licensee has not maintained sufficient control over the product quality or promotion.

Question 23

In the year 2010, the non-Latin whites in California, Texas, New Mexico, and Hawaii were not the majority of the state population for each of those states.

Question 24

When the value of the US dollar decreases relative to the currencies of other competitors, US agricultural goods become less expensive.

Question 25

The "statement of cash flows" does exist in all countries.

Question 26

How can capturing the benefits of a global brand benefit a firm?

Question 27

Define and discuss global marketing.

Question 28

What is the "Gini coefficient" and why is it important?

Question 29

Looking at agricultural exports, what are the differences between value-added products and bulk commodities?

Question 30

How can differences in cultural values and norms affect business done in another country?

Question 31

Intellectual property rights differ by country. How can this affect a firm's business overseas?

Question 32

What are sanitary and phytosanitary (SPS) regulations?

Question 33

What are the two types of exporting, and discuss how the methods differ?

Question 34

How can licensing be used to expand into a foreign market?

Question 35

Greenfield investments are direct investments by a firm in a foreign country. What are the pros and cons of such investment?