Reference no: EM132263242
1. If a business has an internalization advantage, it is more likely to
A. engage in contract manufacturing
B. own a resource that gives it a competitive advantage over its rivals
C. face the liability of foreignness
D. use FDI as a market-entry strategy
2. A manufacturer of hard drives sells its product to an American computer maker, which then exports the finished laptops. The hard-drive manufacturer has engaged in
A. business process outsourcing
B. indirect exporting
C. intracorporate transfer
D. direct exporting
3. Jim is an international intermediary who is paid by commission to solicit domestic orders for foreign manufacturers. He is acting as a(n) ____________.
A. Manufacturers’ agent
B. Freight forwarder
C. Import broker
D. Export broker
4. Suppose Feathr, a Gainesville-based digital marketing company, enters the Chinese market by buying a controlling interest in Chinese company MarketMeChina. What is the most likely disadvantage Feathr will face as a result of this acquisition?
A. becoming vulnerable to Chinese tariffs
B. creating competition with MarketMeChina
C. assuming MarketMeChina's liabilities
D. complying with Chinese building codes