MGT103 Final Exam |Questions with
100% Correct Answers
BritTrek is a British bicycle company. If the United States has a policy that BritTrek can import only
400,000 bicycles into the United States each year, what type of trade restriction is being implemented?
"buy national" law
quota
tariff
export restraint agreement - ✔ ✔ quota
Excessive transportation costs, government regulations, and home production costs might lead a firm
to choose what approach to internationalization?
direct investment
licensing
exporting
importing - ✔ ✔ licensing
Tate Inc. designs and produces a trendy line of small home appliances. International expansion is an
important component of the company's growth strategy. As the management team considers the best
approach for entering the Asian marketplace, what is one of the disadvantages of direct investment?
Shared ownership
,Greater political risk
Diminished control
High transportation costs - ✔ ✔ greater political risk
Small cash outlay and low risk are two advantages of _____.
direct investment
strategic alliances
licensing
importing or exporting - ✔ ✔ importing or exproting
BritTrek is a British bicycle company. It produces its mountain bikes in England and sells them
throughout North America. Which of the following best characterizes this arrangement?
BritTrek has licensing agreements with countries in North America
BritTrek is outsourcing to North America.
BritTrek is exporting its products to North America.
BritTrek wholly owns subsidiaries in North America. - ✔ ✔ brittrek is exporting its products to
north america
A disadvantage of direct investment is:
high transportation costs.
government restrictions.
greater economic risk.
inflexibility. - ✔ ✔ greater economic risk
BritTrek is a British bicycle company with a unique design for its mountain bikes. It has made
arrangements with firms in other countries in which those firms make bikes according to the BritTrek
design, and market them as BritTrek bikes. Those firms pay a royalty to BritTrek for each bike sold.
Which of the following best characterizes this arrangement?
,BritTrek has licensing agreements with firms in foreign markets.
BritTrek is outsourcing to foreign markets.
BritTrek is exporting its products to foreign markets.
BritTrek wholly owns subsidiaries in foreign markets. - ✔ ✔ brittrek has licensing agreements with
firms in foreign markets
The United States, Canada, and Mexico entered into what agreement to eliminate barriers to
trade among them?
NAFTA
EU
GATT
WTO - ✔ ✔ nafta
GoldLeaf and HappyFarms are both grocery stores. They serve the same geographic area, and both
emphasize fresh produce, natural foods, and whole foods. Their prices are similar, and consumers
switch back and forth between them based upon weekly specials. GoldLeaf and HappyFarms are _____.
regulators
strategic allies
competitors
suppliers - ✔ ✔ competitors
Keane Industries is a privately owned firm that manufactures and installs large, deep well digging
equipment which can be operated with little technical expertise. The company has a cash surplus due
to a highly profitable decade of sales in its domestic market. Now ready to enter foreign markets, the
biggest priority for the owners is to maintain full control of any new operations.
What level of international business activity is Keane Industries seeking?
Direct investment
Strategic alliances
, Exporting
Licensing - ✔ ✔ direct investment
BritTrek is a British bicycle company. It expanded into South America by purchasing a small bicycle
production company in a South American country to handle production and distribution. Which of the
following best characterizes this arrangement?
BritTrek has licensing agreements with countries in South America
BritTrek is outsourcing to South America.
BritTrek is exporting its products to South America.
BritTrek wholly owns subsidiaries in South America. - ✔ ✔ brittrek wholly owns subsidiaries in
south america
BritTrek is a British bicycle company. It is looking for quick entry into foreign markets with access to
materials available in those markets. Which approach to internationalization would best fit its
needs?
direct investment
strategic alliances
exporting
licensing - ✔ ✔ strategic alliances
What is a tariff?
A tariff is an accord reached by governments in which countries voluntarily limit the volume or value
of goods they export to or import from one another.
A tariff is a limit on the value of goods that can be traded.
A tariff is a limit on the number of goods that can be traded.
A tariff is a tax collected on goods shipped across national boundaries. - ✔ ✔ a tariff is a tax collected
on goods shipped across national boundaries
The _____ is the first and most important international market system.
100% Correct Answers
BritTrek is a British bicycle company. If the United States has a policy that BritTrek can import only
400,000 bicycles into the United States each year, what type of trade restriction is being implemented?
"buy national" law
quota
tariff
export restraint agreement - ✔ ✔ quota
Excessive transportation costs, government regulations, and home production costs might lead a firm
to choose what approach to internationalization?
direct investment
licensing
exporting
importing - ✔ ✔ licensing
Tate Inc. designs and produces a trendy line of small home appliances. International expansion is an
important component of the company's growth strategy. As the management team considers the best
approach for entering the Asian marketplace, what is one of the disadvantages of direct investment?
Shared ownership
,Greater political risk
Diminished control
High transportation costs - ✔ ✔ greater political risk
Small cash outlay and low risk are two advantages of _____.
direct investment
strategic alliances
licensing
importing or exporting - ✔ ✔ importing or exproting
BritTrek is a British bicycle company. It produces its mountain bikes in England and sells them
throughout North America. Which of the following best characterizes this arrangement?
BritTrek has licensing agreements with countries in North America
BritTrek is outsourcing to North America.
BritTrek is exporting its products to North America.
BritTrek wholly owns subsidiaries in North America. - ✔ ✔ brittrek is exporting its products to
north america
A disadvantage of direct investment is:
high transportation costs.
government restrictions.
greater economic risk.
inflexibility. - ✔ ✔ greater economic risk
BritTrek is a British bicycle company with a unique design for its mountain bikes. It has made
arrangements with firms in other countries in which those firms make bikes according to the BritTrek
design, and market them as BritTrek bikes. Those firms pay a royalty to BritTrek for each bike sold.
Which of the following best characterizes this arrangement?
,BritTrek has licensing agreements with firms in foreign markets.
BritTrek is outsourcing to foreign markets.
BritTrek is exporting its products to foreign markets.
BritTrek wholly owns subsidiaries in foreign markets. - ✔ ✔ brittrek has licensing agreements with
firms in foreign markets
The United States, Canada, and Mexico entered into what agreement to eliminate barriers to
trade among them?
NAFTA
EU
GATT
WTO - ✔ ✔ nafta
GoldLeaf and HappyFarms are both grocery stores. They serve the same geographic area, and both
emphasize fresh produce, natural foods, and whole foods. Their prices are similar, and consumers
switch back and forth between them based upon weekly specials. GoldLeaf and HappyFarms are _____.
regulators
strategic allies
competitors
suppliers - ✔ ✔ competitors
Keane Industries is a privately owned firm that manufactures and installs large, deep well digging
equipment which can be operated with little technical expertise. The company has a cash surplus due
to a highly profitable decade of sales in its domestic market. Now ready to enter foreign markets, the
biggest priority for the owners is to maintain full control of any new operations.
What level of international business activity is Keane Industries seeking?
Direct investment
Strategic alliances
, Exporting
Licensing - ✔ ✔ direct investment
BritTrek is a British bicycle company. It expanded into South America by purchasing a small bicycle
production company in a South American country to handle production and distribution. Which of the
following best characterizes this arrangement?
BritTrek has licensing agreements with countries in South America
BritTrek is outsourcing to South America.
BritTrek is exporting its products to South America.
BritTrek wholly owns subsidiaries in South America. - ✔ ✔ brittrek wholly owns subsidiaries in
south america
BritTrek is a British bicycle company. It is looking for quick entry into foreign markets with access to
materials available in those markets. Which approach to internationalization would best fit its
needs?
direct investment
strategic alliances
exporting
licensing - ✔ ✔ strategic alliances
What is a tariff?
A tariff is an accord reached by governments in which countries voluntarily limit the volume or value
of goods they export to or import from one another.
A tariff is a limit on the value of goods that can be traded.
A tariff is a limit on the number of goods that can be traded.
A tariff is a tax collected on goods shipped across national boundaries. - ✔ ✔ a tariff is a tax collected
on goods shipped across national boundaries
The _____ is the first and most important international market system.
