NDSU BUSN 340 Final Questions and Answers

NDSU BUSN 340 Final Questions and Answers 1. In which of the following types of economic integration systems will the establishment of a common currency be possible? b. Economic union Which of the following statement best describes a customs union b. It imposes common external policies on non-members. Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen Brainpower Read More 3. Which of the following is NOT true about free trade agreements? c. free trade agreement eliminates tariffs on goods that have high tariffs but not goods that already have low tariffs 4. Toyota and the European Union (EU) used to negotiate a quota each year for the number of Japanese cars imported into Europe. When the quota system was lifted in 1999, Toyota responded by establishing a European Design and Development center in southern France and production centers in East Europe. Which of the following best describes Toyota's investment in the European Union c. The EU lowered trade barriers on foreign auto imports 5. When the trade barriers are removed, the size of the market increases. Domestic firms can produce at a higher quantity, which lower production costs per unit. This is an example of ________. b. economies of scale 6. Cotton growers in Country B export nearly 700,000 bales of cotton per year. The government of Country B limits the import of cotton to 1 million bales per year. This is an example of _________. b. quota 7. Entrepreneurial firms can internationalize without venturing abroad by each of the following EXCEPT ________. c. harvesting and existing through sell-off 8. Which of the following is NOT true about the Ease of Doing Business, an index developed by the World Bank that ranks 189 countries? c. all the Easiest countries have high standards of living and advanced economies Which of the following is true of SMEs? b. They account for over 95 per cent of total firms around the world. 10. With regard to investment in start-ups, investment by _____ is considered as informal investment d. friends 11. A recent survey revealed that more than nine out of ten people prefer a watch made by firms in Switzerland to one made in India or U.S.A or any other country. This is an example of _____. the country-of-origin effect 12. Which of the following is an advantage shared by both greenfield operations and acquisitions? a. Protection of know-how 13. With regard to foreign market entry, the resource-based view argues that foreign firms need to c. deploy overwhelming resources and capabilities to offset their liability of foreignness 14. Tintin is a new cartoon series created by Teletoon, a Canadian-based company. Tintin becomes so popular in China that Teletoon was approached by a Chinese toy manufacturing firm about licensing agreement. The CEO of Teletoon is evaluating the pros and cons of such an agreement before making the decision. Which of the following questions would be more important for the CEO to consider before entering the agreement? How much control will Teletoon be able to maintain if it enters the agreement? 15. Tintin is a new cartoon series created by Teletoon, a Canadian-based company. Tintin becomes so popular in China that Teletoon was approached by a Chinese toy manufacturing firm about licensing agreement. The CEO of Teletoon is evaluating the pros and cons of such an agreement before making the decision. Which of the following statements will most likely support the CEO's decision to enter the agreement? b. The brand is not easily counterfeited because it will be protected by the intellectual property law in China. 16. Tintin is a new cartoon series created by Teletoon, a Canadian-based company. Tintin becomes so popular in China that Teletoon was approached by a Chinese toy manufacturing firm about licensing agreement. The CEO of Teletoon is evaluating the pros and cons of such an agreement before making the decision. Which of the following most likely supports the CEO's decision NOT to enter the agreement? d. Teletoon wants to maintain full control of how the character is used. 17. Which of the following is an example of franchising? b. A U.S. fast-food restaurant gives rights to another business to use its entire business system in exchange for compensation and royalties. 18. In which of the following strategies is knowledge mostly developed and retained at the center and key locations? a. Global standardization strategy 19. The _____ structure is the opposite of the geographic area structure. d. global product division 20. Which of the following is NOT a disadvantage of the home replication strategy a. the necessity to adapt to local needs creates a barrier for transferring a company's core competencies to foreign markets NOT ON EXAM 21. Companies in the food and beverage, consumer products, and fashion industries often may cater to the specific needs and tastes of each of the countries where they do business. These companies are most likely to adopt _____ strategy d. localization 22. Which of the following is necessary for local responsiveness to effectively increase a firm's competitiveness a. country managers need to be able to make decisions based on local needs. 23. Which of the following would put pressure on a firm to become locally responsive? a. to meet host government requirements and regulations. 24. Sweet Smile is a toothpaste manufacturing company headquarters in UK. Recently, Sweet Smile acquired a toothpaste company in India and is now servicing both foreign and domestic markets with the same toothpaste manufactured in both locations. Reports from managers in India indicate that sales in India is low due to a lack of local responsiveness. Which of the following most likely supports Sweet Smile implementing a localization strategy instead of a global strategy? b. Sweet Smile managers lack internationalization experience.