Exam 3: Organizational Participants That Make International Business Happen

Which of the following is true with regard to online intermediaries?

The rise of Eastern European SMEs has resulted largely from two trends: the access these firms have gained in recent years to the massive European Union and ________.

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 would occur if Super Cola entered into a licensing agreement with the Asian beverage manufacturer, Tsang Cola?

Foreign distributors are often called merchant distributors.

Foreign distributors that purchase products from exporters for resale at a profit are known as ________.

Commercial banks are the monetary authorities in each country that issue currency and regulate national money supplies.

A firm that enters into a contractual agreement with a foreign partner to allow the partner the right to use certain intellectual property for a specified period of time in exchange for royalties or other compensation is known as a franchisor.

A(n) ________ is a crossborder business alliance in which partnering firms pool their resources to create a new venture, sharing the associated costs and risks.

________ are businesses, institutions, and governments that purchase goods and services as inputs to a production process, or as supplies needed to run a business or organization.

Which of the following best describes a firm that allows a partner the right to use certain intellectual property for a specified period of time in exchange for royalties or other compensation?

In a market consisting of many small, widely dispersed buyers and sellers, the function of which of the following is especially important?

Which of the following is an upstream value-chain activity?

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. -If Hudson Motors grants the right to Mercury Motors Inc., an Asian automobile firm, the right to use its business system in exchange for compensation, Hudson Motors would play the role of a ________.

In a short essay, describe the three key types of focal firms, and explain how their value chain enables international business.

A tax accountant would most likely be involved as a facilitator in which of the following stages of the international value chain?

In a short essay, describe the intermediary functions of agents and manufacturer's representatives. How are the two intermediaries similar?

In a short essay, discuss the impact of the Internet on traditional intermediaries and on retail businesses. Provide examples of retailers who have embraced the new technology and discuss how the Internet has affected their business.

Sovereign wealth funds are state-owned investment funds that undertake systematic, global investment activities.

Within the international value chain, which of the following would operate as a facilitator?

Trading companies play an important role in Japan's external trade because Japan ________.