BUSA 4000 Midterm 1 Exam Questions
and Answers All Correct
Which of the following best characterizes the development of international business? -
Answer- It has existed in some form for centuries
_______ is the total value of products and services produced in a country over the
course of a year. - Answer- GDP
Which of the following is provided by the licensor in a licensing agreement? - Answer- a
combination of intellectual property and technical information and assistance.
How does the acquisition of a foreign company most likely benefit a focal firm in the
foreign market ? - Answer- The focal firm can extend its market reach through readily
available distribution networks.
Which of the following represents an infrastructural factor that firms must consider when
selecting FDI location? - Answer- Availability and quality of local manufacturing
Which if the following is an advantage of exporting? - Answer- It increases overall sales
volume, improves market share, and reduces per-unit costs of manufacturing and can
potentially generate profit margins that are often more favorable than in the domestic
market.
The strategic view of global sourcing suggests that _____ - Answer- just as firms
achieve gains in efficiency, productivity, quality and revenues by leveraging offshore
talent, they also obtain the means to turn around failing businesses, speed up
innovation, restructure operations and fund otherwise-unaffordable development
projects.
Which of the following is an example of a market-seeking motive for FDI? - Answer- a
firm follows its key customers abroad
The relocation of a business process or entire manufacturing facility to a foreign country
is known as ______. - Answer- offshoring
When a firm allows others to use an entire business system in exchange for
compensation, the arrangement is known as _______. - Answer- Franchising
and Answers All Correct
Which of the following best characterizes the development of international business? -
Answer- It has existed in some form for centuries
_______ is the total value of products and services produced in a country over the
course of a year. - Answer- GDP
Which of the following is provided by the licensor in a licensing agreement? - Answer- a
combination of intellectual property and technical information and assistance.
How does the acquisition of a foreign company most likely benefit a focal firm in the
foreign market ? - Answer- The focal firm can extend its market reach through readily
available distribution networks.
Which of the following represents an infrastructural factor that firms must consider when
selecting FDI location? - Answer- Availability and quality of local manufacturing
Which if the following is an advantage of exporting? - Answer- It increases overall sales
volume, improves market share, and reduces per-unit costs of manufacturing and can
potentially generate profit margins that are often more favorable than in the domestic
market.
The strategic view of global sourcing suggests that _____ - Answer- just as firms
achieve gains in efficiency, productivity, quality and revenues by leveraging offshore
talent, they also obtain the means to turn around failing businesses, speed up
innovation, restructure operations and fund otherwise-unaffordable development
projects.
Which of the following is an example of a market-seeking motive for FDI? - Answer- a
firm follows its key customers abroad
The relocation of a business process or entire manufacturing facility to a foreign country
is known as ______. - Answer- offshoring
When a firm allows others to use an entire business system in exchange for
compensation, the arrangement is known as _______. - Answer- Franchising
