Question 1

What are the factors that a company should consider when deciding which markets to enter?

Accepted Answer

The answer of What are the factors that a company...

Question 2

Asiana, a fragrance manufacturer located in France, markets its products to the North American and Asian countries through independent distributors. In this case, Asiana has entered into international markets through .
A) franchising
B) joint venturing
C) joint ownership
D) direct investment
E) indirect exporting

Accepted Answer

Asiana is using independent distributors to market its products internationally, which is a form of indirect exporting.

Question 3

Which of the following is a type of joint venture?
A) direct investment
B) retailing
C) contract manufacturing
D) wholesaling
E) direct exporting

Accepted Answer

Contract manufacturing is a type of joint venture where a company contracts with a local manufacturer in a foreign market to produce its product.

Question 4

Industrial economies offer few market opportunities.

Accepted Answer

Industrial economies typically offer numerous market opportunities due to their advanced infrastructure, diverse industries, and high consumer demand.

Question 5

Differentiate between industrializing economies and industrial economies. Give a few examples of each.

Accepted Answer

The answer of Differentiate between industrializing economies and industrial economies....

Question 6

The two economic factors that reflect a country's attractiveness as a market are its industrial structure and import/export ratio.

Accepted Answer

The attractiveness of a country as a market is determined by a variety of factors, including but not limited to its industrial structure and income distribution. The import/export ratio is a measure of trade balance, not directly an indicator of market attractiveness. Factors like market size, economic growth, infrastructure, and political stability also play crucial roles.

Question 7

Operating domestically, managers have to learn another language, deal with unstable currencies, and redesign their products to suit different customer expectations.

Accepted Answer

These challenges are typically associated with international operations, not domestic ones.

Question 8

The Tokyo Disney Resort is owned and operated by Oriental Land Company under license from the Walt Disney Company. In this case which of the following is an advantage of licensing?
A) The licensee is not required to invest money in the business.
B) The licensee gains recognition without having to develop a product from scratch.
C) The licensor earns profits without having to share its intellectual property with anyone.
D) The licensor has more control over the licensee than it does in its own operations.
E) The licensor faces no threats of competition from the licensee after the contract ends.

Accepted Answer

Licensing allows the licensee to gain recognition and market presence by using an established brand or product without having to develop it from scratch.

Question 9

Which of the following is true of exporting?
A) It involves the least change in a company's product lines.
B) It involves the association of companies with host country partners.
C) It is the most complex way to enter a foreign market.
D) It involves a huge investment if done through independent international distributors.
E) It typically requires products to be extensively modified for the foreign market.

Accepted Answer

Exporting involves selling products directly to foreign markets with minimal changes to the company's existing product lines, making it the least complex and least investment-intensive method of entering a foreign market.

Question 10

Barter involves the direct exchange of goods and services.

Accepted Answer

Barter is a system of trade in which goods or services are directly exchanged for other goods or services without the use of money as a medium of exchange.

Question 11

Explain with examples how the political-legal environment of a country affects a global firm.

Accepted Answer

The answer of Explain with examples how the political-legal environment...

Question 12

The simplest way to enter a foreign market is through .
A) joint ownership
B) exporting
C) licensing
D) direct investment
E) contract manufacturing

Accepted Answer

Exporting is the simplest way to enter a foreign market because it requires the least amount of investment and risk.

Question 13

What are regional free trade zones? Explain the advantages and disadvantages of the European Union (EU).

Accepted Answer

The answer of What are regional free trade zones? Explain...

Question 14

Give an account of the functions of the World Trade Organization (WTO) and the formation of the WTO from
GATT.

Accepted Answer

The answer of Give an account of the functions of...

Question 15

Tim Hortons has taken their iconic Canadian brand to Spain. They did so by . This is a method of entering a foreign market by associating with a host (one already established in Spain) company to produce or market products or services.
A) importing
B) joint venturing
C) direct exporting
D) indirect exporting
E) direct investment

Accepted Answer

Joint venturing involves partnering with a local company in the foreign market to produce or market products, which is what Tim Hortons did in Spain.

Question 16

Providing a host-country partner the right to use a company's manufacturing process, trademark, patent, trade secret, or other item of value is referred to as _.
A) direct investment
B) joint ownership
C) direct exporting
D) management contracting
E) licensing

Accepted Answer

Licensing involves granting a host-country partner the rights to use a company's intellectual property or manufacturing processes.

Question 17

The difference between direct and indirect exporting is that indirect exporting involves _ .
A) higher risks
B) self-handling of exports
C) greater returns
D) less investment
E) more product alterations

Accepted Answer

Indirect exporting involves less investment because the company uses intermediaries to handle the export process, reducing the need for the company to invest in export infrastructure and expertise.

Question 18

Which of the following is true about joint venturing?
A) Contract manufacturing gives significant control to the domestic firm.
B) Companies are required to invest in the construction of foreign-based facilities.
C) Licensing is a highly complex method for entering global markets.
D) A host country partner is necessary for selling or marketing products.
E) Management contracting is highly risky for the domestic firm.

Accepted Answer

Joint venturing often involves partnering with a host country firm to sell or market products, leveraging local knowledge and networks.

Question 19

What is the North American Free Trade Agreement (NAFTA)? In your answer make a reference to the updated agreement, which was ratified in 2020, renamed the CUSMA.

Accepted Answer

The answer of What is the North American Free Trade...

Question 20

In considering whether to do business in a given country, a company should consider factors such as the country's attitudes toward international buying.

Accepted Answer

A country's attitude towards international buying can affect market entry strategies, trade policies, and potential barriers, impacting business operations.

Quiz 15: The Global Marketplace

What are the factors that a company should consider when deciding which markets to enter?

Asiana, a fragrance manufacturer located in France, markets its products to the North American and Asian countries through independent distributors. In this case, Asiana has entered into international markets through .

Which of the following is a type of joint venture?

Industrial economies offer few market opportunities.

Differentiate between industrializing economies and industrial economies. Give a few examples of each.

The two economic factors that reflect a country's attractiveness as a market are its industrial structure and import/export ratio.

Operating domestically, managers have to learn another language, deal with unstable currencies, and redesign their products to suit different customer expectations.

The Tokyo Disney Resort is owned and operated by Oriental Land Company under license from the Walt Disney Company. In this case which of the following is an advantage of licensing?

Which of the following is true of exporting?

Barter involves the direct exchange of goods and services.

Explain with examples how the political-legal environment of a country affects a global firm.

The simplest way to enter a foreign market is through .

What are regional free trade zones? Explain the advantages and disadvantages of the European Union (EU).

Give an account of the functions of the World Trade Organization (WTO) and the formation of the WTO from GATT.

Tim Hortons has taken their iconic Canadian brand to Spain. They did so by . This is a method of entering a foreign market by associating with a host (one already established in Spain) company to produce or market products or services.

Providing a host-country partner the right to use a company's manufacturing process, trademark, patent, trade secret, or other item of value is referred to as _.

The difference between direct and indirect exporting is that indirect exporting involves _ .

Which of the following is true about joint venturing?

What is the North American Free Trade Agreement (NAFTA)? In your answer make a reference to the updated agreement, which was ratified in 2020, renamed the CUSMA.

In considering whether to do business in a given country, a company should consider factors such as the country's attitudes toward international buying.