Exam 14: Direct Investment and Collaborative Strategies

An international management contract is an agreement between a company and a foreign government on the number of foreign personnel it can employ.

Franchisees sometimes wish to change the product or service offered by the franchisor to better fit local market needs abroad. Why are these changes a problem for franchisors?

Which of the following would most likely trigger internal tensions as a firm's modes of foreign operations change?

There are two ways companies can invest in a foreign country. They can either acquire an interest in an existing operation or construct new facilities. In a short essay,describe the advantages and disadvantages of each alternative.

Small economies are sometimes less successful than large countries in attracting FDI by raising import restrictions. What is the most likely reason for this?

The truly experienced international firm will usually make use of various modes of operation simultaneously.

What is a key industry?

What is a management contract? What are the potential advantages to both parties in the contract?

Coca-Cola has collaborative arrangements whereby it produces concentrate that it sells to other companies to bottle its drinks. Which of the following terms best describes this type of arrangement?

The more a company engages in international collaborative arrangements as opposed to wholly owned foreign operations,the more it is likely to ________.

All of the following are arguments for governments to limit foreign control of key industries EXCEPT which one?

The advantage to host countries of international management contracts is that they ________.

An international joint venture is an agreement between two or more companies for the use of a trademark.

Licensing companies commonly negotiate a "front-end" payment from licensees to cover ________ transfer costs.

Wholly owned operations abroad inhibit a company's ability to pursue a global strategy.

Risk is an important factor for companies engaged in international business. One way a collaborative arrangement helps minimize risk when operating abroad is by ________.

In which of the following situations is a firm most likely to be able to choose the foreign operating form it would most like to use?

What is the primary reason for technology licensing to take place while a product is still in the developmental stage?

Metro Hotels,a U.S. hotel chain,has transferred several of its employees to Myanmar where they will work for three or four years before returning to the U.S. The employees will be working with a Myanmar hotel to provide it with their extensive knowledge regarding how to run a hotel. Metro is most likely involved in a ________.

Appropriability theory refers to ________.