Question 1

Clement is the owner of Dills Distillery, which makes and bottles fruit wine. In his planning to export the wine, Clement should consider all of the following except
the target country's balance of trade.
demand for the wine.
legal aspects of the target country.
cultural aspects of the target country.
economic road blocks.

Accepted Answer

The answer of Clement is the owner of Dills Distillery,...

Question 2

Greencorp Ltd. sold the rights for production of 4 Star Soil to Soil X of Italy, and that company now produces the special mix of fertilized soil and sells it in Italy. This arrangement is called a(n)
independent agent.
licensing arrangement.
strategic alliance.
branch office.
equality relationship.

Accepted Answer

The answer of Greencorp Ltd. sold the rights for production...

Question 3

A firm that conducts a significant portion of its business abroad, that has some facilities overseas, and that imports a significant portion of goods from other countries is best described as
an importer.
an international firm.
mininational.
an exporter.
a multinational firm.

Accepted Answer

The answer of A firm that conducts a significant portion...

Question 4

Michael is going to sell his baby products abroad, and he is interested in having someone in the foreign country sell the product for him. Michael is most interested in working with a(n)
franchisee.
multinational firm.
branch office.
international firm.
independent agent.

Accepted Answer

The answer of Michael is going to sell his baby...

Question 5

Which type of firm is one in which management doesn't think of itself as having domestic and international operations but rather as a firm that designs, makes, and markets products in many nations?
An exporter
An importer
An international firm
A multinational firm
Mininational

Accepted Answer

The answer of Which type of firm is one in...

Question 6

With respect to international organizational structures, it is correct to say that
independent agents usually represent just one firm in foreign markets.
licensing arrangements are too expensive for most Canadian firms to get involved in.
a company has more control over branch managers than it does over agents or licence holders.
the number of strategic alliances has declined somewhat in recent years because of strict government regulations in many foreign countries.
Investment Canada's mandate is to limit direct foreign investment in Canada so that Canadian firms, not foreign ones, will control the Canadian market.

Accepted Answer

The answer of With respect to international organizational structures, it...

Question 7

Which of the following is correct regarding the levels of foreign involvement a business can exhibit?
Importing and exporting represent the highest level of involvement in international operations.
Exporters and importers tend to conduct most of their business in foreign markets.
Only large companies are exporters.
An international firm conducts a significant portion of its business abroad, and it usually manufactures the vast majority of its products in foreign countries.
For multinational firms, the location of its head office is largely irrelevant.

Accepted Answer

The answer of Which of the following is correct regarding...

Question 8

A foreign individual or organization that agrees to represent an exporter's interest in foreign markets is called a(n)
headquarters arrangement.
licensing arrangement.
independent agent.
strategic alliance.
branch office.

Accepted Answer

The answer of A foreign individual or organization that agrees...

Question 9

BBX represents several firms at once and usually does not specialize in a particular product or market. It is a(n)
independent agent.
royalty company.
licensing company.
branch office.
strategic alliance.

Accepted Answer

The answer of BBX represents several firms at once and...

Question 10

In which international structure would royalties likely be paid to the exporter?
By a branch office
Under a licensing arrangement
By a subsidiary manufacturing plant
In a joint venture
In a strategic alliance

Accepted Answer

The answer of In which international structure would royalties likely...

Question 11

A firm that produces goods in one country and distributes and sells them in other countries is
a multinational firm.
an exporter.
an international firm.
a joint venture.
an importer.

Accepted Answer

The answer of A firm that produces goods in one...

Question 12

A firm that buys products made in another country for distribution and sale in its own country is
a multinational firm.
a joint venture.
an exporter.
an international firm.
an importer.

Accepted Answer

The answer of A firm that buys products made in...

Question 13

Computers-B-Us sent some of its managers abroad to gain more control over the operations and provide a more visible public presence. This type of organizational structure is known as a(n)
independent agent.
branch office.
direct investment.
strategic alliance.
licensing arrangement.

Accepted Answer

The answer of Computers-B-Us sent some of its managers abroad...

Question 14

In France, McDonald's restaurants sell wine. This is a classic example of
adapting to customer needs.
importing.
foreign exchange.
misreading demand for the product.
balance of payments.

Accepted Answer

The answer of In France, McDonald's restaurants sell wine. This...

Question 15

Can-Eng Manufacturing, Canada's largest supplier of industrial furnaces, exports its furnaces to companies in Japan, Brazil, Germany, Korea, Taiwan, and Mexico. Can-Eng has an agreement with foreign companies in these countries called a(n)
international mandate.
licensing arrangement.
independent agency.
export agreement.
strategic alliance.

Accepted Answer

The answer of Can-Eng Manufacturing, Canada's largest supplier of industrial...

Question 16

Herald Inc., a French newsprint manufacturer, is geared towards international markets but does not have specific domestic and international divisions. This firm is a(n)
multinational firm.
exporter.
independent agent.
purely domestic firm.
customs broker.

Accepted Answer

The answer of Herald Inc., a French newsprint manufacturer, is...

Question 17

________ is an example of an export of a service.
An advertising agency in Montreal making a TV commercial for a company in France
Obtaining information from a foreign database
Vacations taken by Canadians in a foreign country
Purchasing a camera made in Japan
A Canadian tourist having a camera repaired in Egypt

Accepted Answer

The answer of ________ is an example of an export...

Question 18

Levi Strauss has an organization in a foreign country that has agreed to sell their products, to collect payments from the buyers, and to make sure that the buyers are satisfied. The organization is not part of Levi Strauss and may represent several non-competing firms at the same time. The organizational structure that Levi Strauss has selected is called a(n)
strategic alliance.
independent agent.
branch office.
licensing agreement.
direct investment.

Accepted Answer

The answer of Levi Strauss has an organization in a...

Question 19

Which of the following types of firms have planning and decision-making functions that are geared to international markets?
Exporting firms
International firms
Multinational firms
Domestic firms
None of these

Accepted Answer

The answer of Which of the following types of firms...

Question 20

All of the following characteristics describe an independent agent except that it
often sells the exporter's products.
often makes sure that customers are happy.
often represents only one firm.
often collects payments.
is a foreign individual or organization.

Accepted Answer

The answer of All of the following characteristics describe an...

Quiz 5: The Global Context of Business

A firm that conducts a significant portion of its business abroad, that has some facilities overseas, and that imports a significant portion of goods from other countries is best described as an importer. an international firm. mininational. an exporter. a multinational firm.

Michael is going to sell his baby products abroad, and he is interested in having someone in the foreign country sell the product for him. Michael is most interested in working with a(n) franchisee. multinational firm. branch office. international firm. independent agent.

Which type of firm is one in which management doesn't think of itself as having domestic and international operations but rather as a firm that designs, makes, and markets products in many nations? An exporter An importer An international firm A multinational firm Mininational

A foreign individual or organization that agrees to represent an exporter's interest in foreign markets is called a(n) headquarters arrangement. licensing arrangement. independent agent. strategic alliance. branch office.

BBX represents several firms at once and usually does not specialize in a particular product or market. It is a(n) independent agent. royalty company. licensing company. branch office. strategic alliance.

In which international structure would royalties likely be paid to the exporter? By a branch office Under a licensing arrangement By a subsidiary manufacturing plant In a joint venture In a strategic alliance

A firm that produces goods in one country and distributes and sells them in other countries is a multinational firm. an exporter. an international firm. a joint venture. an importer.

A firm that buys products made in another country for distribution and sale in its own country is a multinational firm. a joint venture. an exporter. an international firm. an importer.

Computers-B-Us sent some of its managers abroad to gain more control over the operations and provide a more visible public presence. This type of organizational structure is known as a(n) independent agent. branch office. direct investment. strategic alliance. licensing arrangement.

In France, McDonald's restaurants sell wine. This is a classic example of adapting to customer needs. importing. foreign exchange. misreading demand for the product. balance of payments.

Herald Inc., a French newsprint manufacturer, is geared towards international markets but does not have specific domestic and international divisions. This firm is a(n) multinational firm. exporter. independent agent. purely domestic firm. customs broker.

Which of the following types of firms have planning and decision-making functions that are geared to international markets? Exporting firms International firms Multinational firms Domestic firms None of these

All of the following characteristics describe an independent agent except that it often sells the exporter's products. often makes sure that customers are happy. often represents only one firm. often collects payments. is a foreign individual or organization.