Question 1

MillerCoors allows a Canadian firm to use its name,formula,and brands in return for a royalty.This is known as

Accepted Answer

This is a clear example of licensing, as MillerCoors is allowing a foreign firm to use its intellectual property (name, formula, and brands) in exchange for a royalty.

Question 2

Foreign licensing is similar to

Accepted Answer

Foreign licensing is similar to franchising, where the licensor (the owner of the product or technology) allows the licensee (the foreign entity) to use their intellectual property in exchange for a fee or royalty. This allows the licensee to replicate the franchisor's successful business model in a new market. Unlike starting from scratch (A), wholesaling (C), establishing a subsidiary in another country (D), or establishing a sales office (E), foreign licensing involves leveraging existing intellectual property and brand recognition.

Question 3

A ____ is issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary.

Accepted Answer

A letter of credit is a document issued by a bank that guarantees payment to a beneficiary (usually the exporter) on behalf of the importer. It is a secure method of ensuring payment and is commonly used in international trade. The other options listed are not related to payment guarantees or trade transactions.

Question 4

The Organization of Petroleum Exporting Countries (OPEC)

Accepted Answer

OPEC was founded in 1960 and its primary objective was to coordinate and unify petroleum policies among its member countries in order to secure fair and stable prices for petroleum producers and a regular supply for consumers. It was conceived as a collective-bargaining unit to negotiate with multinational oil companies on behalf of its member countries. The organization has been effective in influencing oil prices through production quotas and other policy measures.

Question 5

The United States joined with Mexico and Canada to promote the movement of resources and products;it formed a(n)

Accepted Answer

The term "economic community" refers to a group of countries that have entered into an agreement to promote economic integration by reducing barriers to trade and investment, and by coordinating policies on issues such as competition, industrial policy, and regional development. The United States, Mexico, and Canada have formed an economic community known as the North American Free Trade Agreement (NAFTA), which promotes the movement of resources and products across their borders.

Question 6

Eleven republics of the former Soviet Union are members of the

Accepted Answer

The Commonwealth of Independent States (CIS) is a regional intergovernmental organization consisting of 11 out of the 15 countries that emerged from the Soviet Union. The CIS was formed in December 1991 as a result of the dissolution of the Soviet Union. The organization has been formed to promote economic and political cooperation, and it is headquartered in Minsk, Belarus.

Question 7

In 1967,several Asian countries banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

Accepted Answer

The Association of Southeast Asian Nations (ASEAN) was established in 1967 to promote trade and economic cooperation among member countries in Southeast Asia. It is not a GATT (General Agreement on Tariffs and Trade) which is a global agreement on trade, nor is it the European Union which is a political and economic union of European countries. A multinational refers to a corporation that operates in multiple countries, and an orderly marketing agreement is a type of agreement between producers to control supply and prices of a product.

Question 8

Which of the following best compares licensing and exporting as tools for entering foreign markets?

Accepted Answer

The answer of Which of the following best compares licensing...

Question 9

All of the following are ways to export a product to a foreign market except

Accepted Answer

All of the answer choices listed are ways to export a product to a foreign market.

Question 10

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

Accepted Answer

The European Union (EU) is a political and economic union of 27 member states located primarily in Europe. The main purpose of the EU is to promote economic and trade cooperation among its member states, including the reduction of trade barriers between them.

Question 11

A ____ is issued by the transport carrier to the exporter to prove merchandise has been shipped.

Accepted Answer

A bill of lading is a legal document issued by a transport carrier to the exporter confirming that merchandise has been received on board a vessel or other means of transportation for delivery to a designated party. It serves as proof of ownership of the goods, and can be used to obtain payment from the buyer or their bank under the terms of the sales contract or letter of credit.

Question 12

Suppose Gillette is seeking a manufacturer in Bangladesh that will produce and market Gillette razors in that country.Gillette expects a royalty from its partner in Bangladesh.Which arrangement will be the best choice for Gillette?

Accepted Answer

Licensing is the best choice for Gillette because it allows the company to grant rights to a manufacturer in Bangladesh to produce and market its razors in exchange for royalty payments, without Gillette having to directly manage operations in Bangladesh.

Question 13

Which of the following statements is true about NAFTA?

Accepted Answer

NAFTA is built on the Canadian Free Trade Agreement (FTA).

Question 14

Which of the following is a potential drawback of licensing?

Accepted Answer

Licensing involves giving permission to another company to produce and sell a product using your brand name or technology. However, if the licensee fails to maintain the quality standards expected by customers, it may reflect badly on the original company that provided the license. This can damage the reputation of the company and lead to loss of customers and revenue. Therefore, quality control is an important aspect to consider when licensing a product.

Question 15

Tony Jamerson decides his company will start exporting and he wants to start at the most basic level.What action should Tony take to meet his objectives?

Accepted Answer

Selling the company's products to an export-import merchant is the most basic level of exporting, as it involves simply selling to an intermediary who will then handle the logistics of exporting the goods to foreign markets. This allows Tony to test the waters of exporting without investing in new facilities or partnerships. Licensing the brand name and products or forming a joint venture may be more advanced strategies, while contacting Sears World Trade may not be relevant to Tony's specific objectives.

Question 16

The four largest gold-producing countries in the world want to form a collective-bargaining unit to provide gold-producing nations with some control of gold prices.These nations will most likely model the unit after

Accepted Answer

The most relevant model for a collective-bargaining unit of gold-producing countries would be OPEC (Organization of the Petroleum Exporting Countries), which has successfully controlled oil prices through collective action since 1960. The other options listed do not have the same focus on natural resource production and pricing.

Question 17

Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment.Therefore,it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name.This is a(n)____ agreement.

Accepted Answer

This is a licensing agreement, as Soccer to the Masses is allowing a Japanese company to use their name and manufacture and distribute products under their brand in exchange for payment (royalties). It does not involve exporting (sending products directly to a foreign market), a strategic alliance (a partnership between two companies), countertrade (a bartering agreement), or a bill of lading (a document used in international shipping).

Question 18

Who are the members of NAFTA?

Accepted Answer

NAFTA (North American Free Trade Agreement) is an agreement between the United States, Canada, and Mexico that removes tariffs and trade barriers on goods and services traded between the three countries. It was signed in 1994.

Question 19

____ is a contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee.

Accepted Answer

Licensing is a type of agreement where one firm allows another firm to produce and market its product and brand name for a fee. The licensor retains ownership of the product and brand but earns a licensing fee from the licensee. This can be a useful strategy for firms looking to expand their business without taking on the risk and cost of creating a new market from scratch.

Question 20

The United States joined with Mexico and Canada to promote the movement of resources and products;it formed a(n)

Accepted Answer

The formation of an economic community involves countries joining together to promote the movement of resources and products, which is exactly what the United States, Mexico, and Canada did with the North American Free Trade Agreement (NAFTA). The other options are not applicable as they do not involve a joint effort to promote trade and resource movement.

Quiz 3: Global Business

MillerCoors allows a Canadian firm to use its name,formula,and brands in return for a royalty.This is known as

Foreign licensing is similar to

A ____ is issued by a bank upon request of an importer stating that the bank will pay an amount of money to a stated beneficiary.

The Organization of Petroleum Exporting Countries (OPEC)

The United States joined with Mexico and Canada to promote the movement of resources and products;it formed a(n)

Eleven republics of the former Soviet Union are members of the

In 1967,several Asian countries banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

Which of the following best compares licensing and exporting as tools for entering foreign markets?

All of the following are ways to export a product to a foreign market except

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

A ____ is issued by the transport carrier to the exporter to prove merchandise has been shipped.

Suppose Gillette is seeking a manufacturer in Bangladesh that will produce and market Gillette razors in that country.Gillette expects a royalty from its partner in Bangladesh.Which arrangement will be the best choice for Gillette?

Which of the following statements is true about NAFTA?

Which of the following is a potential drawback of licensing?

Tony Jamerson decides his company will start exporting and he wants to start at the most basic level.What action should Tony take to meet his objectives?

The four largest gold-producing countries in the world want to form a collective-bargaining unit to provide gold-producing nations with some control of gold prices.These nations will most likely model the unit after

Soccer to the Masses is interested in global expansion but does not want to make a large financial commitment.Therefore,it decides to allow a Japanese company to manufacture and distribute products under the Soccer to the Masses name.This is a(n) ____ agreement.

Who are the members of NAFTA?

____ is a contractual agreement where one firm gives another permission to produce and market its product and brand name in exchange for a fee.

The United States joined with Mexico and Canada to promote the movement of resources and products;it formed a(n)