Franchising is actually a form of what market entry strategy

Assignment Help Operation Management

Reference no: EM132109383

1. When utilizing sales agents for international market entry, companies maintain a high degree of control.

True

False

2. When comparing the two, Export Trading Companies (ETC's) are similar to Export Management Companies (EMC's), except that ETC's:

Have more experience exporting than EMC's

Are more risky for manufacturers

Sell competitive products from multiple manufacturers

Take possession of the goods and assumes the risk

3. Franchising is actually a form of what market entry strategy?

Exporting

Greenfield Investment

Merger and Acquisition

Direct Sales

4. A primary challenge with doing business in China is that government policies favor domestic companies over foreign ones.

True

False

5. China continues to decrease its environmental regulations and protections in order to be competitive globally.

True

False

6. The Foreign Corrupt Practices Act (FCPA) allows U.S. companies to provide gifts and payments to foreign government officials, as long as it is common practice in that country.

True

False

7. When entering into international agreements for distribution, it is better to "employ" individuals, as opposed to having independent contractors.

True

False

8. It is preferred to utilize foreign legal systems for the enforcement of contracts, as opposed to international arbitration.

True

False

9. Common ethical issues in business often involved

Employment practices

Government corruption

Human rights

Moral obligation

All the above

10. In the IKEA in Saudi Arabia case, the primary ethical and legal issue involved laws against comparative advertising.

True

False

11. Activity-based pricing for international is

the practice of charging customers for each value added process.

when companies include per unit costs specific to international, as opposed to all costs for both international and domestic sales.

Pricing based on the number of manufacturing processes

None of the above

12. When entering Canada, Target found that cross-border trade is relatively easy because of NAFTA.

True

False

13. In the Volkswagen and Tata Motors case, a primary benefit Tata brought to the strategic alliance was:

Cheaper labor

a well established advertising budget.

high quality technology produced at low cost

access and understanding of local consumer needs.

14. The final overall costs for products being exported to a foreign market, including unit cost, insurance, freight, tariffs/duties and taxes is known as:

activity cost

landed cost

foreign pricing

price elasticity

15. Briefly discuss three (3) reasons why Target was not successful in entering Canada.

16. When dealing with international legal contracts, how should companies accomplish their objectives without consulting an experienced international contracts lawyer?

They should not engage without consulting a lawyer!

Utilize the same contracts they use in the U.S.

Use an online service, like LegalZoom.com

Write their own agreements

Reference no: EM132109383

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