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Question
When a firm is considering FDI, what are some of the negotiating points it must weigh before making its decision?
Answer
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Related questions
Q:
Countertrade is
A) most attractive to small, primarily domestic enterprises.
B) least attractive to small, primarily domestic enterprises.
C) most attractive to large, diverse multinational enterprises.
D) least attractive to large, diverse multinational enterprises.
Q:
_____ occurs when a firm builds a plant in a country and agrees to take a certain percentage of the plant s output as partial payment for the contract.
A) A buyback
B) A barter
C) An offset
D) A switch trade
Q:
As a document of title, a _____ can be used to obtain payment or a written promise of payment before the merchandise is released to the importer.
A) bill of lading
B) letter of credit
C) bill of exchange
D) draft
Q:
A _____ serves as a receipt, a contract, and a document of title.
A) letter of credit
B) bill of lading
C) draft
D) bill of exchange
Q:
In a typical international trade transaction, the
A) exporter should obtain a letter of credit to initiate transactions.
B) importer and exporter maintain an account with the same bank.
C) importer s bank sends a letter of credit to the exporter s bank.
D) importer s bank sends the draft and bill of lading to the exporter s bank.
Q:
In an international transaction involving a bank as a third party, the exporter ships the product after
A) the bank receives materials from the importer.
B) receiving a cleared payment through the bank.
C) the importer has paid the bank.
D) the bank promises to pay on the importer s behalf.
Q:
Japan s great trading houses are called
A) Nikei.
B) sogo shosha.
C) Yen houses.
D) Samurai houses.
Q:
Which of the following statements is true of export management companies (EMCs)?
A) An EMC is a transportation company that engages in international business.
B) EMCs are export-import banks that manage foreign exchanges.
C) EMCs are export specialists that act on behalf of their client firms.
D) An EMC is an intermediary that facilitates talks between two nations.
Q:
Describe the 14 steps in a typical international trade transaction.
Q:
Tangible property includes patents, designs, copyrights, and trademarks.
⊚ true
⊚ false
Q:
What is a drawback of a just-in-time system?
A) Transport costs are high when using a just-in-time system.
B) It leaves a firm without a buffer stock of inventory.
C) It increases the warranty costs associated with products.
D) It leaves a firm with high scrap costs associated with defective products.
Q:
When a multinational corporation buys products or services from one of its suppliers that produces them somewhere else, whether domestically or globally, it is referred to as
A) offshoring.
B) insourcing.
C) outsourcing.
D) co-sourcing.
Q:
The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods, and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposalis called
A) transportation.
B) distribution.
C) reverse logistics.
D) global sourcing.
Q:
Make-or-buy decisions are decisions about
A) the components to be used in the manufacturing process.
B) procuring raw materials for a production process.
C) procuring the capital equipment for production.
D) whether or not to outsource value creation activities.
Q:
Which of the following would lead a firm to choose a concentration of production?
A) Trade barriers are high.
B) Location externalities are not important.
C) Important exchange rates are expected to remain relatively stable.
D) The product s value-to-weight ratio is low.
Q:
This is where cutting-edge production should take place, or at least be tested for implementation in other parts of the firm s production network.
A) source factory
B) lead factory
C) contributor factory
D) outpost factory
Q:
Products such as refined sugar, certain bulk chemicals, paint, and petroleum products
A) cannot travel through a global supply chain.
B) have low value-to-weight ratios.
C) come from offshore factories.
D) have high value-to-weight ratios.
Q:
_____ covers a range of manufacturing technologies designed to reduce setup times for complex equipment.
A) ISO 9000
B) TQM
C) Lean production
D) JIT
Q:
Logistics is the activity that controls the
A) effective flows of physical materials through the value chain.
B) customer contact points of a business.
C) activities involved in creating a product.
D) information flows between a business and its customers.
Q:
Describe the concept of minimum efficient scale of output. What are the implications of minimum efficient scale?
Q:
The most important aspect of a country s cultural differences, particularly important in foodstuffs and beverages, is the impact of
A) values.
B) traditions.
C) norms.
D) attitudes.
Q:
Explain briefly the regulatory influences on pricing.
Q:
In the context of a tube of toothpaste, the box in which the toothpaste is shipped to the store from the warehouse is the primary packaging.
⊚ true
⊚ false
Q:
Managers in a source factory operate in essentially the same way that managers in an offshore factory operate. They have very little say in purchasing or logistics decisions.
⊚ true
⊚ false
Q:
How can the polycentric approach to staffing result in the creation of a federation within the firm? Why is this a disadvantage for the firm?
Q:
Markets can be segmented in only one way by sociocultural factors.
⊚ true
⊚ false
Q:
Four elements comprise the marketing mix: product attributes, distribution strategy, communication strategy, and pricing strategy.
⊚ true
⊚ false
Q:
New-product development
A) results in high returns about 50% of the time.
B) has a high failure rate.
C) always earns enormous returns.
D) has a low failure rate.
Q:
_____ is an international market research company based in London that works with more than half of the Fortune 500 companies.
A) Ipsos
B) Nielsen
C) NPD Group
D) Kantar
Q:
If a marketer asks, Is the demand for the product among customers in the international market segments targeted similar to domestic demands? then what element of the marketing mix is being addressed?
A) product strategy
B) pricing strategy
C) distribution strategy
D) communication strategy