Question 1

A joint venture allows a foreign firm to easier adjust to a new market and often meet various institutional requirements.

Accepted Answer

Joint ventures often involve partnering with a local company, which can provide valuable knowledge and connections in the new market. This can make it easier for the foreign firm to navigate the local business environment and meet regulatory or legal requirements.

Question 2

The study quoted in the text demonstrated that calorie posting did not cause any significant changes in Starbucks revenue over all.

Accepted Answer

The study found that there was no significant change in Starbucks revenue overall after the implementation of calorie posting.

Question 3

McDonalds has traditionally been popular among Chinese children.

Accepted Answer

McDonald's has been popular among Chinese children for many years. It is considered a fun and exciting place to go with friends and family.

Question 4

Changing consumer taste and preferences,lawsuits,and competitive pressures adversely affect McDonald's sales.

Accepted Answer

These factors can all have a negative impact on McDonald's sales. Consumer tastes and preferences are constantly evolving, and if McDonald's is unable to keep up with these changes, it could result in declining sales. Lawsuits can also be damaging to the brand's reputation and financial stability. Finally, competitive pressures from other fast food chains can make it difficult for McDonald's to maintain market share and attract new customers.

Question 5

In 2001-2002,the fast food industry underwent tremendous growth.

Accepted Answer

The fast food industry experienced growth over several decades, but there is no specific evidence that 2001-2002 was a period of tremendous growth compared to other years.

Question 6

McDonalds kept its U.S.-based menu when entering the Chinese market.

Accepted Answer

McDonalds modified its menu to better suit Chinese tastes and cultural preferences when entering the Chinese market. This included offering items such as the McSpicy chicken sandwich and taro pie.

Question 7

In 2001 and 2002,McDonald's tried to improve the quality of its service by hiring mystery shoppers to evaluate service,cleanliness,and food quality.

Accepted Answer

This statement is true. McDonald's did indeed hire mystery shoppers to evaluate service, cleanliness, and food quality in an attempt to improve their overall quality of service.

Question 8

To counter parents' concerns about fast foods and childhood obesity,McDonalds considered:
A)a variety of menu items such as milk shakes and candy.
B)a variety of menu items such as apple slices, fruit juices, peanut butter and jelly sandwiches, and carrot sticks.
C)not changing the menu.
D)all of the above.

Accepted Answer

Offering healthier menu options such as fruits and vegetables is a better choice in addressing parents' concerns about fast foods and childhood obesity. Options such as milkshakes and candy may contribute to the issue. Not changing the menu at all would not address the concern either.

Question 9

Changes in the macro environment affect individual firms and industries through the microeconomic factors of demand,production,cost,and profitability.

Accepted Answer

Changes in the macro environment, such as economic conditions, demographic trends, and government policies, can have a significant impact on the microeconomic factors of demand, production, cost, and profitability for individual firms and industries. For example, a recession in the macro environment can lead to a decrease in demand for goods and services, which can result in lower production, increased competition, and reduced profitability for businesses in affected industries. Conversely, favorable economic growth and policies can stimulate demand, increase production, and drive profitability for businesses in those categories.

Question 10

As McDonald's expanded globally,it was able to achieve:
A)economies of scope.
B)economies of scale.
C)diseconomies of scale.
D)none of the above.

Accepted Answer

McDonald's was able to achieve economies of scale as it expanded globally, as it was able to spread its fixed costs over a larger output and negotiate better deals with suppliers due to its increased purchasing power.

Question 11

If a good is price elastic,an increase in price will increase total revenues.

Accepted Answer

If a good is price elastic, an increase in price will cause a greater decrease in quantity demanded. This decrease in quantity demanded will offset the increase in price, resulting in a decrease in total revenue. Therefore, if a good is price elastic, an increase in price will decrease total revenues.

Question 12

If a good is price inelastic,an increase in price will decrease total revenues.

Accepted Answer

If a good is price inelastic, an increase in price will not necessarily result in a decrease in total revenues. This is because consumers may still be willing to purchase the good at the higher price, resulting in an increase in total revenue despite the price increase. Total revenue will only decrease if the decrease in quantity demanded due to the price increase is greater than the increase in price.

Question 13

McDonald's can offset the decline in demand by influencing the different variables that affected the demand function for their products.

Accepted Answer

McDonald's can use different strategies to influence the variables that affect their demand function, such as adjusting prices, introducing new products, improving marketing efforts, or enhancing the quality of their offerings. Therefore, they have the potential to offset the decline in demand by managing these variables effectively.

Question 14

In terms of location decisions,firms evaluate the infrastructure of the area in terms of access to transportation as well as the quality of life.

Accepted Answer

Location decisions are influenced by a variety of factors including infrastructure, access to transportation, and quality of life amenities. Evaluating the infrastructure of an area helps firms understand the transportation options available to employees and customers. Additionally, the quality of life in an area can impact a firm's ability to attract and retain talented employees.

Question 15

The fast-food industry in the U.S.consists of many firms,but despite that it can still be viewed as an oligopoly because the top few firms control a significant share of the market.

Accepted Answer

An oligopoly is a market structure in which a few firms dominate the market. While there are many firms in the fast-food industry in the U.S., a small group of top firms, such as McDonald's, Burger King, and Wendy's, control a significant portion of the market, making it an oligopoly.

Question 16

To cut costs in the face of declining demand and increased competition,many fast food restaurants have focused on reducing:
A)labor costs.
B)utility costs.
C)paper napkin costs.
D)none of the above.

Accepted Answer

The answer of To cut costs in the face of...

Question 17

The quoted in the textbook study of consumer behavior at Starbucks company stores demonstrated that including calorie count on menus had no impact on consumer behavior.

Accepted Answer

Studies on consumer behavior, including those at Starbucks, have shown that including calorie counts on menus can impact consumer behavior, leading to lower calorie purchases.

Question 18

How did McDonalds address the drive-through innovation in China?

Accepted Answer

The answer of How did McDonalds address the drive-through innovation...

Question 19

In terms of location decisions,firms evaluate the extent to which the labor force is unionized.

Accepted Answer

Labor unionization can have an impact on the cost of labor, as well as working conditions and the regulatory environment for businesses. Therefore, it is a factor that firms may consider when making location decisions.

Question 20

Multinational companies can easily apply identical production methods in different countries and obtain the same results.

Accepted Answer

Different countries have varying regulations, labor skills, cultural practices, and resource availabilities, which can affect the efficiency and effectiveness of identical production methods.

Quiz 16: Combining Micro and Macro Analysis for Managerial Decision Making