Exam 3: Organizational Participants That Make International Business Happen

An increasingly popular type of turnkey contract in the developing economies is the ________, in which the contractors acquire an ownership stake in the facility for a period of time until it is turned over to the client.

In a short essay, explain the differences between franchisors, licensors, and turnkey contractors. What are the factors that determine the type of entry strategies used by focal firms to expand abroad?

Common carriers are firms that ________.

Super Cola (Scenario) U.S.-based Super Cola, one of the top five cola manufacturers, has previously attempted to enter the Asian beverage market with little success. Lacking the name recognition of its competitors, Super Cola was unable to gain market share and ceased shipping its products overseas after six months. Super Cola realizes that the large Asian market would be extremely profitable, but the company requires a new strategy. Consultants hired by Super Cola propose two different methods for entering the market: licensing and franchising. -Which of the following, if true, would render franchising unattractive for Super Cola?

Shareholders Meeting (Scenario) A senior manager at Hudson Motors Inc. presented the top management of his firm with a strategy aimed at improving sales and profits. Based in Kentucky, Hudson Motors has always used American-made parts for its automobiles. However, sales and profits have slumped miserably over the past three years. In his plan, the senior manager proposes to delegate certain noncore operations to external vendors besides setting up manufacturing units in Asia, where the cost of labor is significantly low. -By proposing to set up manufacturing units in Asia, the senior manager of Hudson Motors is proposing the top management of his firm to adopt which of the following strategies?

In a short essay, explain the two most common international entry strategies for MNEs and SMEs, and describe how franchising and licensing can contribute to those strategies.

The majority of focal firms are privately owned multinational enterprises.

Collaborative arrangements help focal firms to ________.

Focal firms and intermediaries represent the demand side of international business transactions.

Nanocell (Scenario) Two years ago, Nanocell, a small Canadian company, began manufacturing a solar cell that holds a charge for 24 hours, many times longer than any competing solar cell. International sales of the palm-sized solar cell occurred quickly, and soon Nanocell was exporting to Australia, China, and Africa. Today, Nanocell is a growing multinational enterprise with sales expected to soar even higher. -Which of the following questions is most relevant for evaluating whether Nanocell should partner with an agent or a foreign distributor to expand its overseas sales?

Selling products on the Internet has triggered the reduction of traditional intermediaries, such as wholesalers.

A firm that grants another the right to use an entire business system in exchange for fees, royalties, or other forms of compensation is known as a(n) ________.

________ assume the international marketing function on behalf of producers, especially those with limited international business experience.

Which of the following is true with regard to MNEs?

Compared to large multinationals, SMEs can be more flexible and quicker to respond to global business opportunities.

SMEs usually choose ________ as their main strategy for entering foreign markets.

In a short essay, describe the four major participants in international business. Explain how they work together in international business activities.

A born global firm is defined as ________.

Which of the following refers to a specialized logistics service provider that arranges international shipping for exporting firms?

Which of the following is a downstream value-chain activity?