Question 1

Fran Wilson Creative Cosmetics attributes its success to a top-quality product,effective advertising,and a novel __________ program.

Accepted Answer

The answer of Fran Wilson Creative Cosmetics attributes its success...

Question 2

Licensing refers to

Accepted Answer

Licensing refers to offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or fee.

Question 3

A joint venture refers to

Accepted Answer

A joint venture refers to when a foreign company and a local firm invest together to create a local business. This can involve sharing resources, risks, and profits in order to achieve a common goal. This type of partnership can be beneficial for companies looking to expand their reach into new markets, as they can leverage the local firm's knowledge and expertise while bringing their own resources to the table.

Question 4

Which of the following is an advantage inherent in the use of licensing?

Accepted Answer

Licensing allows the licensee to gain valuable insights and information about the market dynamics, which can be an advantage for the licensor as it expands its reach without directly investing in the market.

Question 5

Which of the following is an advantage inherent in the use of licensing?

Accepted Answer

The answer of Which of the following is an advantage...

Question 6

What global market-entry strategy involves slightly more risk than indirect exporting for a company but also opens the door to increased profits?

Accepted Answer

The answer of What global market-entry strategy involves slightly more...

Question 7

The prominent global market-entry strategy among small-and medium-sized companies is

Accepted Answer

Small- and medium-sized companies often lack the resources and expertise to engage in more complex market-entry strategies such as direct investment, joint ventures, or wholly-owned subsidiaries. Exporting allows such companies to enter foreign markets without the need for significant upfront investment or long-term commitments. It also provides an opportunity to test the waters and develop a better understanding of the market before considering more advanced strategies. Therefore, exporting is the most suitable option for small- and medium-sized companies.

Question 8

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

Accepted Answer

The answer of A form of low-risk and capital-free entry...

Question 9

Most companies become involved in direct exporting when

Accepted Answer

Direct exporting is a method of market entry in which a company directly sells its products or services to a foreign market without intermediaries. Companies typically become involved in direct exporting when they believe their sales volume will be sufficiently large to justify the investment in time and resources required.

Question 10

When a U.S.airplane manufacturer sells its airplanes to business executives in Germany without using intermediaries,it is referred to as

Accepted Answer

Direct exporting refers to selling goods directly to customers in another country without using intermediaries. In this scenario, the U.S. airplane manufacturer is selling its planes directly to business executives in Germany, without involving any intermediary parties.

Question 11

Tricon was the restaurant division of PepsiCo until it was spun off in 1997.Since then,Tricon has opened 6,000 KFC restaurants abroad.It has 158 restaurants in Indonesia and more than 500 restaurants in China.All are locally owned and the owner pays a fee to Tricon.Tricon is engaged in

Accepted Answer

Tricon's business model of licensing involves allowing local owners to operate KFC restaurants abroad and paying a fee to Tricon. This allows Tricon to expand its brand globally without the need for direct exporting or contract manufacturing.

Question 12

Which form of entry into a global market makes a firm the most vulnerable to harm regarding its brand name or reputation?

Accepted Answer

The answer of Which form of entry into a global...

Question 13

Offering the right to a trademark,patent,trade secret,or similarly valued items of intellectual property in return for a royalty or fee is referred to as

Accepted Answer

The practice of offering the right to use a trademark, patent, or trade secret in exchange for a fee or royalty is known as licensing. Direct and indirect exporting refer to different types of international trade activities, contract manufacturing involves outsourcing production to another company, and outside branding does not accurately describe this concept of licensing intellectual property.

Question 14

A global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership,control,and profits of the new company is referred to as

Accepted Answer

This describes a joint venture, where a foreign company and a local firm create a new company together to share ownership, control, and profits. Licensing involves giving permission to a foreign firm to use a company's intellectual property in exchange for royalties. Direct exporting involves selling products directly to customers in a foreign market. Local assembly involves manufacturing products in a foreign market using local resources. Dual adaptation involves tailoring products and marketing strategies to fit local market conditions while keeping the overall global strategy intact.

Question 15

Which of the following is a disadvantage associated with licensing?

Accepted Answer

Licensing allows the licensee to gain access to the licensor's intellectual property, which means they can use it to create their own product or service. This creates the potential for the licensor to create their own competition.

Question 16

Yogen Früz is a successful chain of frozen yogurt shops originating in Canada.Archeology Investments has an agreement with the Canadian firm that grants rights to its company to open and operate Yogen Früz shops in Dubai,Oman,Qatar,Bahrain,and Kuwait.Yogen Früz is engaged in

Accepted Answer

The agreement between Archeology Investments and Yogen Früz is a clear example of franchising, where the franchisee (Archeology Investments) is granted the right to operate a business using the franchisor's (Yogen Früz) brand, products, and business systems.

Question 17

A variation of licensing is referred to as

Accepted Answer

The variation of licensing referred to in the question is franchising. Direct investment involves a company investing in and establishing its own operations in a foreign market. Joint ventures involve partnering with another company in a foreign market to jointly own and operate a business. Direct exporting involves a company exporting its products directly to customers in a foreign market. Dual adaptation is a marketing strategy that involves adapting both the product and the promotion for a foreign market.

Question 18

Select Service Partner (SSP)Group has operations in 30 countries involving food and beverage establishments,often in transit hubs like airports and railway stations.SSP also operates Starbucks locations in airports in Finland,Sweden,and Norway.SSP pays Starbucks a royalty based on sales as well as a fee for each store.In these instances,Starbucks is engaged in

Accepted Answer

Starbucks is engaged in licensing in this scenario, as it is allowing SSP to use its brand name and operating procedures in exchange for a royalty and fee. Direct exporting involves a company selling products to customers in another country, while indirect exporting involves selling to an intermediary who then sells to customers in another country. Contract manufacturing and foreign assembly involve a company partnering with manufacturers in another country to produce products.

Question 19

To avoid competing with Japanese firms through their traditional channel of distribution,Fran Wilson Creative Cosmetics Moodmatcher lip coloring is sold in which type of retail venue?

Accepted Answer

To avoid competing with Japanese firms through their traditional channel of distribution, it makes sense to sell Fran Wilson Creative Cosmetics Moodmatcher lip coloring in a non-traditional venue. Beauty salons align with the product's focus on beauty and personal care, making it an appropriate retail venue. Grocery stores and gift stores would be too utilitarian for a cosmetic product, while flower shops have nothing to do with personal care. Department stores could potentially be competitors with Japanese firms, which is what the company is trying to avoid.

Question 20

Direct exporting refers to

Accepted Answer

Direct exporting refers to when the firm sells its domestically produced goods in a foreign country without intermediaries such as agents, distributors, or trading companies.

Quiz 6: Understanding and Reaching Global Consumers and Markets

Fran Wilson Creative Cosmetics attributes its success to a top-quality product,effective advertising,and a novel __________ program.

Licensing refers to

A joint venture refers to

Which of the following is an advantage inherent in the use of licensing?

Which of the following is an advantage inherent in the use of licensing?

What global market-entry strategy involves slightly more risk than indirect exporting for a company but also opens the door to increased profits?

The prominent global market-entry strategy among small-and medium-sized companies is

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

Most companies become involved in direct exporting when

When a U.S.airplane manufacturer sells its airplanes to business executives in Germany without using intermediaries,it is referred to as

Tricon was the restaurant division of PepsiCo until it was spun off in 1997.Since then,Tricon has opened 6,000 KFC restaurants abroad.It has 158 restaurants in Indonesia and more than 500 restaurants in China.All are locally owned and the owner pays a fee to Tricon.Tricon is engaged in

Which form of entry into a global market makes a firm the most vulnerable to harm regarding its brand name or reputation?

Offering the right to a trademark,patent,trade secret,or similarly valued items of intellectual property in return for a royalty or fee is referred to as

A global market-entry strategy in which a foreign company and a local firm invest together to create a local business in order to share ownership,control,and profits of the new company is referred to as

Which of the following is a disadvantage associated with licensing?

Yogen Früz is a successful chain of frozen yogurt shops originating in Canada.Archeology Investments has an agreement with the Canadian firm that grants rights to its company to open and operate Yogen Früz shops in Dubai,Oman,Qatar,Bahrain,and Kuwait.Yogen Früz is engaged in

A variation of licensing is referred to as

To avoid competing with Japanese firms through their traditional channel of distribution,Fran Wilson Creative Cosmetics Moodmatcher lip coloring is sold in which type of retail venue?

Direct exporting refers to