Q&A Hero

Q: Discuss the arguments for and against standardized advertising.

Q: Describe how source and country of origin effects affect the effectiveness of a firm's international communication.

Q: Under what circumstances is a follower likely to succeed when entering into international markets?

Q: Describe how cultural barriers can jeopardize the effectiveness of a firm's international communication.

Q: Which of the following is true about alliances? A. Many alliance partners are also competitors. B. Alliances are often difficult to manage. C. The use of alliances is likely to decline as markets internationalize. D. All of the above. E. Two of A, B, and C.

Q: Describe the differences between distribution systems of various countries in terms of channel quality.

Q: ________ alliances are driven by similarity and integration. A. Strategic B. Trading C. Pooling D. Equity-based E. None of the above

Q: Describe the differences in distribution systems in various countries in terms of channel exclusivity.

Q: According to a 12-country study conducted by Ernst & Young, _____ percent of U.S. companies are engaged in some form of strategic alliance. A. 25 B. 50 C. 65 D. 75 E. 90

Q: Describe the differences between the distribution systems of various countries in terms of channel length.

Q: Strategic alliances are: A. partnerships between competitors, customers, or suppliers that may take various forms. B. another name for a growth triangle. C. arbitration. D. none of the above. E. two of A, B, and C.

Q: Describe the differences in distribution systems between countries in terms of retail concentration.

Q: Although there are many forms of strategic alliances or competitive alliances, the alliances are often between: A. customers. B. competitors. C. suppliers. D. all of the above. E. two of A, B, and C.

Q: Describe how cultural differences affect product attributes.

Q: Partnerships between or among competitors, customers, or suppliers that may take one or more of various forms, both equity and nonequity, are known as: A. licenses. B. joint ventures. C. wholly owned subsidiaries. D. strategic alliances. E. management contracts.

Q: Describe how economic development influences product attributes.

Q: Benefits of joint ventures may include: A. the ability to respond to strong nationalistic sentiment in the host nation. B. access to expertise that the company lacks. C. differing strategies and cultures of the partners. D. two of the above. E. all of A, B, and C.

Q: What is meant by a marketing mix? Briefly describe how a firm configures its marketing mix.

Q: A joint venture may be: A. a corporate entity formed between an international firm and local owners. B. a corporate entity formed between two or more international firms. C. a corporate undertaking between two or more firms of a limited-duration project. D. two of the above. E. all of A, B, and C.

Q: What is the role of information technology and the Internet in modern materials management?

Q: According to the text, a company that wishes to own a foreign subsidiary outright may: A. make a greenfield investment. B. purchase its distributor. C. acquire part of a going concern. D. all of the above. E. two of A, B, and C.

Q: Discuss the advantages and the disadvantages of just-in-time (JIT) inventory systems.

Q: Historically, firms making a foreign direct investment have generally preferred: A. direct exporting. B. joint ventures. C. strategic alliances. D. wholly owned subsidiaries. E. contract manufacturing.

Q: In 2008, foreign firms investing in the United States spent about ____________ on establishing new firms as they did on acquiring going firms. A. twice as much B. 25 percent as much C. nine times as much D. one-thirteenth as much E. the same amount

Q: Briefly describe the advantages and disadvantages of entering strategic alliances with suppliers.

Q: Foreign direct investment (FDI) includes all of the following except: A. wholly owned subsidiary. B. joint venture. C. management contract. D. strategic alliance. E. none of the above. (All four are included within foreign direct investment.)

Q: Describe how making all or part of a product in-house facilitates investments in highly specialized assets.

Q: "Foreign direct investment without investment" is a term sometimes applied to: A. franchising. B. exporting. C. a joint venture. D. a management contract. E. contract manufacturing.

Q: Describe the two sources of improvement in the capabilities of a foreign site.

Q: International firms employ contract manufacturing: A. as a means of entering a foreign market without investing in plant facilities. B. to subcontract assembly work or the production of parts to independent companies overseas. C. A and B. D. as a means of direct foreign investment.

Q: Discuss the two basic strategies for locating production facilities. When is it most appropriate to centralize production?

Q: An arrangement in which one firm contracts with another firm to produce products to its specifications but assumes responsibility for marketing is: A. a license. B. a franchise. C. a management contract. D. contract manufacturing. E. a turnkey project.

Q: Describe flexible manufacturing and mass customization as important factors in location decisions.

Q: Hilton and Delta provide assistance to other international companies. That is an example of: A. a joint venture. B. a management contract. C. a strategic alliance. D. contract manufacturing. E. licensing.

Q: Define minimum efficient scale of output. How does this influence the location decisions of production activities?

Q: According to the text, a management contract is useful for: A. joint ventures. B. earning money by providing know-how. C. two of A, B, and D. D. wholly owned subsidiaries. E. all of A, B, and D.

Q: How do country-specific factors affect a country s attractiveness as a manufacturing base?

Q: According to the text, management contracts usually stipulate that a fee of __________ be paid to the firm providing the management expertise. A. 2 to 5 percent of sales B. 30 to 50 percent of sales C. 2 to 5 percent of profits D. 30 to 50 percent of profits E. 5 to 7 percent of profits

Q: Production and logistics functions must be able to accommodate demands for local responsiveness. Elaborate.

Q: An arrangement by which one firm provides management in all or specific areas to another firm is: A. a license. B. a franchise. C. a management contract. D. all of the above. E. two of A, B, and C.

Q: Describe the philosophy of total quality management.

Q: Describe the pros and cons of countertrade.

Q: McDonald's, Kentucky Fried Chicken, and Subway are examples of: A. joint ventures. B. licensing. C. franchising. D. strategic alliances. E. none of the above.

Q: The principal ingredient(s) that a franchiser exports is: A. a brand name. B. marketing strategy. C. a set of proven procedures. D. two of the above. E. all of A, B, and C.

Q: Briefly describe the different types of countertrade arrangements.

Q: Franchising is a form of: A. contract management. B. licensing. C. contract manufacturing. D. joint venture. E. two of the above.

Q: Describe the Foreign Credit Insurance Association (FCIA). What types of risks does it cover?

Q: Which of the following was stated in the text as being a concern with licensing? A. It requires the licensor to invest scarce funds in the licensee's company. B. It can create a competitor. C. License terms are often not upheld by the courts. D. All of the above. E. Two of A, B, and C.

Q: What is an Ex-Im Bank? What is its mission and how does it pursue it?

Q: Licensing provides income for: A. fashion designers. B. computer manufacturers. C. magazine publishers. D. all of the above. E. two of A, B, and C.

Q: According to the text, licensing agreements usually stipulate that a royalty of __________ be paid to the licensor. A. 2 to 5 percent of profits B. 2 to 5 percent of sales C. 5 to 7 percent of profits D. 5 to 7 percent of sales E. none of the above

Q: What is the difference between a sight draft and a time draft?

Q: When a licensing agreement is made: A. the licensee receives expertise from another company. B. the licensee obtains permission from the government to do business in a foreign country. C. the licensor is a foreign government which grants the license. D. the licensor pays to receive assistance from the licensee. E. two of the above.

Q: Briefly describe the various financial devices that help exporters solve the problem of a lack of trust in international trade.

Q: By means of a licensing agreement: A. an international firm receives permission from a foreign government to set up a subsidiary in that country. B. one firm grants to another the right to use stipulated parts of its expertise. C. a foreign company receives products made for it by another company. D. one firm grants to another the right to use all of its expertise. E. two of the above.

Q: A contractual arrangement in which one firm grants access to its patents, trade secrets, or technology to another for a fee is: A. an exporter. B. a sales company. C. a management contract. D. a joint venture. E. none of the above.

Q: How does a lack of trust affect firms engaged in international trade? How can the problem be solved?

Q: Briefly describe the strategic steps that novice exporters can take to increase the probability of exporting successfully

Q: Discuss the requirements of viable markets under the segment approach.

Q: What are export management companies? What are their advantages and and disadvantages?

Q: Discuss some cultural problems and technical difficulties in collecting primary data abroad.

Q: Describe the role of the U.S. Department of Commerce in helping U.S. firms increase their knowledge of export opportunities.

Q: What is the value of government-sponsored trade missions and trade fairs?

Q: Discuss cluster analysis as a method of estimating market demand.

Q: How should a firm choose between a greenfield venture and an acquisition?

Q: Describe the pros and cons of greenfield ventures.

Q: Discuss the use of market indicators.

Q: Discuss why imports do not completely measure market potential.

Q: Describe the advantages and disadvantages of acquisitions as a means of establishing a wholly owned subsidiary.

Q: Describe the advantages of turnkey projects as a mode of entry into a foreign market.

Q: The segment approach requires that markets should be which of the following? A. Accessible B. Actionable C. Profitable D. All of the above E. A and B

Q: The segment approach to investigating markets requires that markets should be which of the following? A. Large B. Protected C. Capturable D. All of the above E. A and C

Q: What is meant by wholly owned subsidiary? What are the advantages of wholly owned subsidiaries?

Q: The segment approach to investigating markets requires that markets should be which of the following? A. Definable B. Focused C. Profitable D. All of the above E. Two of A, B, and C

Q: What are the advantages and disadvantages of using joint venture as a mode of entry into a foreign market?

Q: Describe the disadvantages of licensing as a mode of entry into the foreign market.

Q: There are several criteria for segmenting markets. Which of the following is not a criterion for segmenting? A. Definable B. Accessible C. Small D. Actionable E. None of the above (All are criteria for segmenting.)

Q: What are some of the ways in which a firm can reduce the risk of losing its proprietary know-how to foreign companies through licensing agreements?

Q: In __________ screening, the important variables for segmentation are commonalities in needs and wants among consumers across nationalities. A. country B. product C. segment D. cultural E. none of the above.

Q: Describe turnkey projects as an entry mode into a foreign market.