Question 1

Licenses are often given to companies owned in whole or in part by the licensor.

Accepted Answer

A) True 
 B)False

Question 2

In a licensing arrangement,it is rare for companies to agree to a front-end payment to cover technology transfer costs.

Accepted Answer

A) True 
 B)False

Question 3

What is a master franchise?

Accepted Answer

A)  the original agreement between the franchisor and franchisee 
B)  the franchisee with the highest revenue in a region 
C)  a franchisee with rights to open outlets on its own or develop subfranchises 
D)  the set of standard terms regulating the relationship between franchisor and franchisee

Question 4

It is important when setting up a collaborative arrangement to agree on mutual goals and expectations.

Accepted Answer

A) True 
 B)False

Question 5

Judson Baked Goods,a U.S. firm,grants the use of its trademark to a company in Sweden and provides the Swedish company with operational assistance on a continuing basis. Judson is most likely involved in ________.

Accepted Answer

A)  a management contract 
B)  franchising 
C)  offshoring 
D)  appropriability

Question 6

Without a proven track record in collaborative arrangements,a company will most likely need to ________.

Accepted Answer

A)  have its home country government approve licensing contracts 
B)  delegate fewer responsibilities to partners at the company 
C)  negotiate harder with and make more concessions to a partner 
D)  depend more on trust as a control mechanism

Question 7

Turnkey projects generally differ from other forms of international business in that ________.

Accepted Answer

A)  they tend to be smaller 
B)  customers are more likely private companies 
C)  they are more often located in remote areas 
D)  they depend almost entirely on acquisitions rather than greenfield operations

Question 8

A licensing agreement is a contract for the granting of rights on tangible property.

Accepted Answer

A) True 
 B)False

Question 9

The sums needed to develop and market many new products are out of reach of most companies acting alone.

Accepted Answer

A) True 
 B)False

Question 10

Exporting is usually more feasible when transportation costs are high rather than low in relation to production costs.

Accepted Answer

A) True 
 B)False

Question 11

Tom,a manager at an MNE,has been given the task of identifying a pool of companies with which the firm might form collaborative arrangements. Which of the following activities would be LEAST useful for Tom?

Accepted Answer

A)  attending technical conferences 
B)  monitoring industry journals 
C)  attending trade fairs 
D)  constructing turnkey facilities

Question 12

What motives do businesses have for entering into collaborative arrangements? What are some of the problems associated with collaborative arrangements?

Accepted Answer

The answer of What motives do businesses have for entering...

Question 13

What is a turnkey operation? What features generally make turnkey operations different from other collaborative arrangements?

Accepted Answer

The answer of What is a turnkey operation? What features...

Question 14

What problem most likely arises when a company wishes to sell techniques/technology that it has either not yet fully developed or used commercially?

Accepted Answer

A)  A buyer is reluctant to buy what it has not seen, and a seller risks divulging secretive information. 
B)  Most governments want to see contract details, which companies feel are proprietary. 
C)  It is difficult to develop a rapport between negotiating parties in this type of situation. 
D)  Parties can seldom agree on the desired level of quality control.

Question 15

Lesser-known franchisors sometimes enter foreign countries with company-owned outlets. A reason for doing this is to ________.

Accepted Answer

A)  guarantee profits 
B)  avoid competition 
C)  compete with local stores 
D)  attract potential franchisees

Question 16

What is an international joint venture?

Accepted Answer

A)  an international agreement between two or more companies to have access to each other's patents 
B)  the ownership of a company by two or more companies, of which at least one is a foreign company where the venture is located 
C)  an international agreement between two or more firms for the use of a trademark 
D)  an agreement between two or more organizations to share management expertise

Question 17

What is the difference between licensing and cross-licensing? What factors do firms need to consider before entering into licensing agreements?

Accepted Answer

The answer of What is the difference between licensing and...

Question 18

Executives at a U.S. firm are debating whether to start a new operation in Russia or acquire an existing one. Which of the following factors best supports a decision to start up a new operation in Russia?

Accepted Answer

A)  The Russian government places restrictions on the outward transfer of foreign capital. 
B)  Labor relations at existing Russian firms are poor and difficult to change. 
C)  Russia's currency is weak and stock market prices are significantly depressed. 
D)  Existing companies have goodwill and positive brand recognition in Russia.

Question 19

Companies typically use various international operating forms simultaneously for all the following reasons EXCEPT which one?

Accepted Answer

A)  They may be at different stages of commitment for different products. 
B)  They may be at different stages of commitment for different countries. 
C)  They may need to balance foreign revenues among their operating divisions. 
D)  Differences in countries' characteristics may necessitate diverse operational forms.

Exam 14: Direct Investment and Collaborative Strategies

Licenses are often given to companies owned in whole or in part by the licensor.

In a licensing arrangement,it is rare for companies to agree to a front-end payment to cover technology transfer costs.

What is a master franchise?

It is important when setting up a collaborative arrangement to agree on mutual goals and expectations.

Judson Baked Goods,a U.S. firm,grants the use of its trademark to a company in Sweden and provides the Swedish company with operational assistance on a continuing basis. Judson is most likely involved in ________.

Without a proven track record in collaborative arrangements,a company will most likely need to ________.

Turnkey projects generally differ from other forms of international business in that ________.

A licensing agreement is a contract for the granting of rights on tangible property.

The sums needed to develop and market many new products are out of reach of most companies acting alone.

Exporting is usually more feasible when transportation costs are high rather than low in relation to production costs.

Tom,a manager at an MNE,has been given the task of identifying a pool of companies with which the firm might form collaborative arrangements. Which of the following activities would be LEAST useful for Tom?

What motives do businesses have for entering into collaborative arrangements? What are some of the problems associated with collaborative arrangements?

What is a turnkey operation? What features generally make turnkey operations different from other collaborative arrangements?

What problem most likely arises when a company wishes to sell techniques/technology that it has either not yet fully developed or used commercially?

Lesser-known franchisors sometimes enter foreign countries with company-owned outlets. A reason for doing this is to ________.

What is an international joint venture?

What is the difference between licensing and cross-licensing? What factors do firms need to consider before entering into licensing agreements?

Executives at a U.S. firm are debating whether to start a new operation in Russia or acquire an existing one. Which of the following factors best supports a decision to start up a new operation in Russia?

Companies typically use various international operating forms simultaneously for all the following reasons EXCEPT which one?