BUSA 4000 Final Exam Review
Questions with 100% Correct
Answers
The estimate of the share of annual industry sales the firm expects to generate in a
particular target market is known as - Answer- Company Sales Potential
____ is used by some firms to gauge long-term sales potential without fully committing
to a foreign market - Answer- Test Marketing
Trade audits may provide managers insight regarding - Answer- Competitors' offerings
and pricing
A global market opportunity is a favorable combination of circumstances, locations, or
timing that offer prospects for designing new products for the domestic market -
Answer- False
Licensing partners are independent businesses abroad that acquire rights and skills
from the focal firms to conduct local operations - Answer- False
Which of the following is an advantage of exporting? - Answer- Increases overall sales
volume, improves market share
If a computer contains a microprocessor from Costa Rica and a hard disk drive from the
Philippines, the computer manufacturer in the US is using - Answer- Global sourcing
The relocation of a business process of entire manufacturing facility to a foreign country
is known as - Answer- Offshoring
The strategic view of global sourcing suggests that - Answer- Offshore talent increases
productivity
Which of the following represents an infrastructural factor that firms must consider when
selecting an FDI location? - Answer- Availability and quality of local manufacturing
Which of the following is an example of a market seeking motive for FDI? - Answer-
Firm follows its key customer abroad
, How does the acquisition of a foreign company most likely benefit a focal firm in the
foreign market? - Answer- Extend its market reach through readily available distribution
network
When a firm allows others to use an entire business system in exchange for
compensation, the arrangement is known as - Answer- Franchising
Which of the following is provided by the licensor in a licensing agreement? - Answer- A
combination of intellectual property and technical information and assistance
Information technology has increased the success and growth of international
franchising operations by - Answer- Improving communication between MNE managers
and their franchisees
Shippers Export Declaration: the basic contract between exporter and shipper,
authorizes the shipping company to transport the goods to the buyers decision -
Answer- False
Reshoring: refers to the offshoring or relocation of processes or manufacturing to a
nearby country, often sharing a border with the home country - Answer- False
Greenfield Investment: the firm invests to build new manufacturing, marketing, or admin
facility, as opposed to acquiring existing facilities - Answer- True
Direct Exporting: contracting with an intermediary in the firm's home country to perform
all export functions, often an export management company or a trading company -
Answer- False
____ is (are) at odds with free trade, the unrestricted flow of products, services, and
capital across national borders - Answer- Government Intervention
_____ are checkpoints at the ports of entry in each country where government officials
inspect imported products and levy tariffs - Answer- Customs
Financing or other resources that a government grants to a firm or group of firms, to
ensure their survival or success is referred to as - Answer- Subsidy
A quantitative restriction on specific imports from a specific country for a set period, of
time is referred to as - Answer- Quota
Government impose defensive barriers to - Answer- All of these (safeguard industries,
promote national security, protect workers)
Which of the following entry strategies do most firms use in the absence of high tariffs? -
Answer- Exporting
Questions with 100% Correct
Answers
The estimate of the share of annual industry sales the firm expects to generate in a
particular target market is known as - Answer- Company Sales Potential
____ is used by some firms to gauge long-term sales potential without fully committing
to a foreign market - Answer- Test Marketing
Trade audits may provide managers insight regarding - Answer- Competitors' offerings
and pricing
A global market opportunity is a favorable combination of circumstances, locations, or
timing that offer prospects for designing new products for the domestic market -
Answer- False
Licensing partners are independent businesses abroad that acquire rights and skills
from the focal firms to conduct local operations - Answer- False
Which of the following is an advantage of exporting? - Answer- Increases overall sales
volume, improves market share
If a computer contains a microprocessor from Costa Rica and a hard disk drive from the
Philippines, the computer manufacturer in the US is using - Answer- Global sourcing
The relocation of a business process of entire manufacturing facility to a foreign country
is known as - Answer- Offshoring
The strategic view of global sourcing suggests that - Answer- Offshore talent increases
productivity
Which of the following represents an infrastructural factor that firms must consider when
selecting an FDI location? - Answer- Availability and quality of local manufacturing
Which of the following is an example of a market seeking motive for FDI? - Answer-
Firm follows its key customer abroad
, How does the acquisition of a foreign company most likely benefit a focal firm in the
foreign market? - Answer- Extend its market reach through readily available distribution
network
When a firm allows others to use an entire business system in exchange for
compensation, the arrangement is known as - Answer- Franchising
Which of the following is provided by the licensor in a licensing agreement? - Answer- A
combination of intellectual property and technical information and assistance
Information technology has increased the success and growth of international
franchising operations by - Answer- Improving communication between MNE managers
and their franchisees
Shippers Export Declaration: the basic contract between exporter and shipper,
authorizes the shipping company to transport the goods to the buyers decision -
Answer- False
Reshoring: refers to the offshoring or relocation of processes or manufacturing to a
nearby country, often sharing a border with the home country - Answer- False
Greenfield Investment: the firm invests to build new manufacturing, marketing, or admin
facility, as opposed to acquiring existing facilities - Answer- True
Direct Exporting: contracting with an intermediary in the firm's home country to perform
all export functions, often an export management company or a trading company -
Answer- False
____ is (are) at odds with free trade, the unrestricted flow of products, services, and
capital across national borders - Answer- Government Intervention
_____ are checkpoints at the ports of entry in each country where government officials
inspect imported products and levy tariffs - Answer- Customs
Financing or other resources that a government grants to a firm or group of firms, to
ensure their survival or success is referred to as - Answer- Subsidy
A quantitative restriction on specific imports from a specific country for a set period, of
time is referred to as - Answer- Quota
Government impose defensive barriers to - Answer- All of these (safeguard industries,
promote national security, protect workers)
Which of the following entry strategies do most firms use in the absence of high tariffs? -
Answer- Exporting
