107.Which of the following best describes the direct investment global entry strategy?
A.With direct investment, a firm maintains total ownership of its plants, operation facilities, and offices in a foreign country. BDirect investment occurs when a firm enters a new market by pooling its resources with those of a local
. firm to form a new company in which ownership, control, and profits are shared. C. Direct investment refers to depositing payroll funds in a foreign bank. D Direct investment designates the maximum quantity of a product that may be brought into a country . during a specified time period.
E.Direct investment occurs when a producer sells its offering in a foreign market at a price less than its production cost.
108.The term “trade deficit” refers to: A. a country that exports more goods than it imports.
B. an indicator of the quality of life in a country. C. a level of population growth that impacts exports.
D. the sum of all goods and services handled in a country.
E. higher levels of imports than exports.
109.Which of the following actions performed by a government may prevent or discourage a firm from entering a particular country’s marketplace? A. Setting tariffs B. Setting quotas
C. Establishing a boycott D. Setting exchange control
E. All of these
110.When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of: A. a tariff. B. offshoring.
C. overseas consolidation.
D. globalization. E. franchising.
111.When entering into a franchise agreement, what term is used to refer to the firm that will provide a service using the name and business format developed? A. Franchisee B. Franchisor
C. Franchise agent
D. Franchise partner
E. None of these
112.Which of the following statements best describes global expansion through a strategic alliance?
A.A strategic alliance is a relationship in which two firms collaborate on a business opportunity, but do not invest in each other.
B.In a strategic alliance, a firm enters a new market and forms a new company with shared ownership, profits and controls. C. In a strategic alliance, two firms enter into a franchise agreement.
D. In a strategic alliance, a firm in one country sends products to a firm in another country. E. In a strategic alliance, a firm signs a trade agreement with a firm in another country.
113.Which of the following global entry strategies is being used if a company collaborates with a competitor on a globally-based opportunity for mutual benefit, but the competitors do not invest in each other? A. Strategic alliance B. Joint venture
C. Franchising
D. Direct investment
E. None of these
114.The U.S. imports more goods from China than it exports to China. This is known as: A. a trade deficit.
B. a trade surplus. C. gross domestic product (GDP).
D. gross national income (GNI).
E. none of these
115.Which of the following must be taken into consideration by a food company, such as Kraft, when entering a global market? A Food companies must adjust their approaches to global markets by recognizing their unique . characteristics and consumer demands.
B. Food companies can penetrate any market with any product as long as they spend enough on promotion. C. Food companies like Kraft know that other countries will automatically like the taste of American products. D Food companies must always reformulate U.S. products for other markets, because there are no
. consumer preferences that cross multiple cultures. E. None of these
116.Which of the following statements describes the requirements Walmart is mandating from its suppliers in order to address concerns about its reputation where globalization is concerned? A. All manufacturers must be audited by third parties. B. Only a limited quantity of supplies can come from plants with inhumane working conditions.
C. Factories can overlook a limited amount of ill treatment of workers.
D.Suppliers with a substandard environmental rating can continue to do business for only two years from the time they are notified. E. None of these.
117.When Ford Motor Company decided to sell the Fiesta–in the same form and design–around the globe, instead of selling different versions in different countries, this was part of Ford’s: A. global product strategy. B. global pricing strategy.
C. global distribution strategy.
D. global exchange strategy.
E. global communication strategy.
118.Which of the following trade agreements is designed to manage and promote trade activities for the United States, Canada and Mexico? A. NAFTA B. EU
C. CAFTA
D. Mercosur
E. ASEAN