Question 1

A ________ is the initiator of an international business transaction.

Accepted Answer

A)  facilitator 
B)  focal firm 
C)  distribution channel intermediary 
D)  freight forwarder 
A)  facilitator 
B)  focal firm 
C)  distribution channel intermediary 
D)  freight forwarder

Question 2

Which of the following is true about SMEs?

Accepted Answer

A)  They are more bureaucratic than are most MNEs. 
B)  They are characterized by low adaptability. 
C)  They often sustain entrepreneurship and innovation in national economies. 
D)  They rarely target specialized products. 
A)  They are more bureaucratic than are most MNEs. 
B)  They are characterized by low adaptability. 
C)  They often sustain entrepreneurship and innovation in national economies. 
D)  They rarely target specialized products.

Question 3

A young entrepreneurial company that initiates international business activity early in its evolution, moving rapidly into foreign markets is called a(n) ________.

Accepted Answer

A)  born global firm 
B)  MNE 
C)  not-for-profit company 
D)  conglomerate 
A)  born global firm 
B)  MNE 
C)  not-for-profit company 
D)  conglomerate

Question 4

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 primary benefits is Super Cola most likely to accrue by virtue of entering into a licensing agreement with Tsang Cola?

Accepted Answer

A)  Super Cola would learn the marketing techniques used by cola manufacturers in Asia and would simulate them after the expiry of the licensing agreement with Tsang Cola. 
B)  Super Cola would be represented on the Tsang board of directors and would oversee Tsang operations in Asia and the U.S. 
C)  Super Cola would learn the manufacturing techniques used by Tsang Cola and use the same methods in the U.S. 
D)  Super Cola would receive royalties from beverage sales and an entry into the Asian market. 
A)  Super Cola would learn the marketing techniques used by cola manufacturers in Asia and would simulate them after the expiry of the licensing agreement with Tsang Cola. 
B)  Super Cola would be represented on the Tsang board of directors and would oversee Tsang operations in Asia and the U.S. 
C)  Super Cola would learn the manufacturing techniques used by Tsang Cola and use the same methods in the U.S. 
D)  Super Cola would receive royalties from beverage sales and an entry into the Asian market.

Question 5

A ________ is a firm or an individual with special expertise in banking, legal advice, customs clearance, or related support services that helps focal firms perform international business transactions.

Accepted Answer

A)  facilitator 
B)  born global firm 
C)  distribution channel intermediary 
D)  turnkey contractor 
A)  facilitator 
B)  born global firm 
C)  distribution channel intermediary 
D)  turnkey contractor

Question 6

Project-based partnerships ________.

Accepted Answer

A)  are extremely formal ventures 
B)  undertake projects with a relatively broad scope 
C)  involve equity investment in the parent companies 
D)  are short-term, nonequity ventures 
A)  are extremely formal ventures 
B)  undertake projects with a relatively broad scope 
C)  involve equity investment in the parent companies 
D)  are short-term, nonequity ventures

Question 7

Commercial banks facilitate the operations of international businesses by doing all of the following EXCEPT ________.

Accepted Answer

A)  regulating national money supplies 
B)  transferring funds to individuals and foreign banks 
C)  supplying credit information on foreign buyers 
D)  providing credit to buyers and sellers 
A)  regulating national money supplies 
B)  transferring funds to individuals and foreign banks 
C)  supplying credit information on foreign buyers 
D)  providing credit to buyers and sellers

Question 8

In the research and development stage of the international value chain, ________ act as distribution channel intermediaries.

Accepted Answer

A)  universities 
B)  research labs 
C)  innovation fairs 
D)  consolidators 
A)  universities 
B)  research labs 
C)  innovation fairs 
D)  consolidators

Question 9

Due to their size, MNEs account for the majority of firms active in international business.

Accepted Answer

A) True 
 B)False

Question 10

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 licensor.

Accepted Answer

A) True 
 B)False

Question 11

Market research is a downstream value-chain activity.

Accepted Answer

A) True 
 B)False

Question 12

Logistics service providers, freight forwarders, and banks are examples of ________.

Accepted Answer

A)  retailers 
B)  distribution channel intermediaries 
C)  focal firms 
D)  facilitators 
A)  retailers 
B)  distribution channel intermediaries 
C)  focal firms 
D)  facilitators

Question 13

In the years following World War II, most multinationals, typically from the United States and the United Kingdom, went abroad seeking raw materials, production efficiencies, and foreign-based customers.

Accepted Answer

A) True 
 B)False

Question 14

All focal firms are private businesses.

Accepted Answer

A) True 
 B)False

Question 15

Distribution channel intermediaries ________.

Accepted Answer

A)  deliver products and services in the home country and abroad 
B)  provide financial support to SMEs 
C)  facilitate customs clearance for MNEs 
D)  assist focal firms with legal issues 
A)  deliver products and services in the home country and abroad 
B)  provide financial support to SMEs 
C)  facilitate customs clearance for MNEs 
D)  assist focal firms with legal issues

Question 16

Some focal firms are manufacturing businesses, while others are in the service sector.

Accepted Answer

A) True 
 B)False

Question 17

Licensing allows companies to ________.

Accepted Answer

A)  internationalize rapidly while remaining in their home market 
B)  monitor and control employee behavior 
C)  eliminate the costs of advertising and branding 
D)  invest in emerging markets abroad 
A)  internationalize rapidly while remaining in their home market 
B)  monitor and control employee behavior 
C)  eliminate the costs of advertising and branding 
D)  invest in emerging markets abroad

Question 18

In ________, some focal firms are partly or wholly owned by the government.

Accepted Answer

A)  free market economies 
B)  highly developed countries 
C)  market economies 
D)  centrally planned economies 
A)  free market economies 
B)  highly developed countries 
C)  market economies 
D)  centrally planned economies

Question 19

A(n) ________ is an intermediary (often an individual or a small firm) that handles orders to buy and sell commodities, products, and services in international business transactions for a commission.

Accepted Answer

A)  agent 
B)  licensor 
C)  franchisor 
D)  foreign distributor 
A)  agent 
B)  licensor 
C)  franchisor 
D)  foreign distributor

Question 20

Which of the following represent the demand side of international business transactions?

Accepted Answer

A)  focal firms 
B)  facilitators 
C)  intermediaries 
D)  retailers 
A)  focal firms 
B)  facilitators 
C)  intermediaries 
D)  retailers

A ________ is the initiator of an international business transaction.

Which of the following is true about SMEs?

A young entrepreneurial company that initiates international business activity early in its evolution, moving rapidly into foreign markets is called a(n) ________.

A ________ is a firm or an individual with special expertise in banking, legal advice, customs clearance, or related support services that helps focal firms perform international business transactions.

Project-based partnerships ________.

Commercial banks facilitate the operations of international businesses by doing all of the following EXCEPT ________.

In the research and development stage of the international value chain, ________ act as distribution channel intermediaries.

Due to their size, MNEs account for the majority of firms active in international business.

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 licensor.

Market research is a downstream value-chain activity.

Logistics service providers, freight forwarders, and banks are examples of ________.

In the years following World War II, most multinationals, typically from the United States and the United Kingdom, went abroad seeking raw materials, production efficiencies, and foreign-based customers.

All focal firms are private businesses.

Distribution channel intermediaries ________.

Some focal firms are manufacturing businesses, while others are in the service sector.

Licensing allows companies to ________.

In ________, some focal firms are partly or wholly owned by the government.

A(n) ________ is an intermediary (often an individual or a small firm) that handles orders to buy and sell commodities, products, and services in international business transactions for a commission.

Which of the following represent the demand side of international business transactions?

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics and International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention in International Business

Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Countertrade

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Global Sourcing

Marketing in the Global Firm

Human Resource Management in the Global Firm

Financial Management and Accounting in the Global Firm

Filters

Exam 3: Organizational Participants That Make International Business Happen

A ________ is the initiator of an international business transaction.

Which of the following is true about SMEs?

A young entrepreneurial company that initiates international business activity early in its evolution, moving rapidly into foreign markets is called a(n) ________.

A ________ is a firm or an individual with special expertise in banking, legal advice, customs clearance, or related support services that helps focal firms perform international business transactions.

Project-based partnerships ________.

Commercial banks facilitate the operations of international businesses by doing all of the following EXCEPT ________.

In the research and development stage of the international value chain, ________ act as distribution channel intermediaries.

Due to their size, MNEs account for the majority of firms active in international business.

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 licensor.

Market research is a downstream value-chain activity.

Logistics service providers, freight forwarders, and banks are examples of ________.

In the years following World War II, most multinationals, typically from the United States and the United Kingdom, went abroad seeking raw materials, production efficiencies, and foreign-based customers.

All focal firms are private businesses.

Distribution channel intermediaries ________.

Some focal firms are manufacturing businesses, while others are in the service sector.

Licensing allows companies to ________.

In ________, some focal firms are partly or wholly owned by the government.

A(n) ________ is an intermediary (often an individual or a small firm) that handles orders to buy and sell commodities, products, and services in international business transactions for a commission.

Which of the following represent the demand side of international business transactions?

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics and International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention in International Business

Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Countertrade

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Global Sourcing

Marketing in the Global Firm

Human Resource Management in the Global Firm

Financial Management and Accounting in the Global Firm

Filters