International Business Chapter 12 Questions and Answers Already Passed

International Business Chapter 12 Questions and Answers Already Passed 1) Which of the following is not one of the three steps in increasing market share, revenue, and profits? A) assess alternative markets B) evaluate respective costs, benefits, and risks C) perform a situation analysis D) select market with most potential for entry or expansion Answer: C Diff: 2 Skill: Concept Objective: 1 68) When two or more firms agree to work together and create a joint owned firm to promote mutual interest, ________ has occurred. A) an acquisition B) a joint venture C) a licensing agreement D) a franchise agreement Answer: B Diff: 1 Skill: Concept Objective: 7 Learning Outcome: Summarize the main entry strategies and modes that businesses use to enter into foreign markets 67) The licensees that built Tokyo Disneyland insisted on a ________ licensing agreement with the Walt Disney Company before agreeing to invest the funds necessary to build the park. A) one-year B) ten-year C) twenty-five year D) one-hundred year Answer: D Diff: 2 Skill: Application Objective: 3 66) What is a common disadvantage of using a greenfield strategy? A) paying high tariffs B) using outdated equipment C) taking over existing debts D) complying with local regulations Answer: D Diff: 2 Skill: Concept Objective: 7 Learning Outcome: Explain the implications of foreign direct investment for both host and home country 65) Comtex, a U.S. clock manufacturer, recently built a new production facility in Bangladesh. Which term best describes the activities of Comtex? A) joint venture strategy B) brownfield strategy C) acquisition strategy D) greenfield strategy Answer: D Diff: 2 Skill: Application Objective: 7 Learning Outcome: Summarize the main entry strategies and modes that businesses use to enter into foreign markets 64) Which of the following is a method for foreign direct investment? A) participating in business process outsourcing B) buying existing assets in a foreign country C) exporting services and products D) entering licensing agreements Answer: B Diff: 2 Skill: Concept Objective: 7 Learning Outcome: Summarize the main entry