MGMT 309 - Chapter 5

Which of the following statements can be used to explain the growth of international business?

Many countries in Europe and Asia were devastated after World War II and had to be rebuilt.

In the U.S. Starbucks does not franchise. It has a(n) ____ agreement with Barnes and Noble.

strategic

Siemens moves almost all the mail in the United States. Siemens and the U.S. Postal Service use a(n) ____ strategy.

strategic alliance

Nokia sells phones in more than 150 countries and has employees in more than 120 countries. It is a(n) ____ business.

multi-national

Which of the following statements does NOT describe a characteristic of importing/exporting?

The costs of initiating an import/export strategy are high.

Which of the following describes what has occurred in international business during the past three decades?

The volume of international trade increased more than 3000 percent.

Which of the following is NOT a potential disadvantage associated with an import/export operation?

There is a great deal of risk involved compared to other strategic alternatives.

Great Wolf Lodge is a hotel chain with water parks built inside. In the lobbies they have Pizza Hut and Starbucks. Great Wolf Lodge uses a(n) ____ strategy.

a joint venture/strategic alliance

Donna is a certified public accountant with expertise in only the U.S. tax code. Her service is a(n) ____ business.

domestic

American music and movie industries are the largest in the world. These industries use ____ to bring their product around the world.

exporting

A(n) ____ business transcends national boundaries and is not committed to a single home country.

global

Coca-Cola is based out of Atlanta but reaches into hundreds of countries. The product is locally packaged, but the cola inside is essentially the same throughout the world. Coca-Cola is edging closer to being a(n) ____ business.

global

A disadvantage of importing/exporting is

government restriction

Two U.S. companies Cargill and Archer Daniels Midland purchase 25% of the world cocoa supply from farmers in West Africa. These companies use

importing

A(n) ____ strategy requires little initial investment, is heavily regulated, and provides little opportunity to modify products for local conditions.

importing/exporting

____ is the least risky type of international business in which firms usually become involved.

importing/exporting

Which of the following is the least intense level of international business strategy?

importing/exporting strategy

A(n) ____ business is one that is primarily based in a single country but that acquires some meaningful share of its resources and/or revenues from other countries.

international

Marks & Spencer is an upscale British department store that has a few stores in the United States and two stores in Paris. According to the classification scheme in the text, Marks & Spencer is a(n)

international

Tohos, pantyhose with the foot shaped like a mitten, are sold over the Internet. Its business is primarily in the United States and Japan. It is an example of a(n) ____ business.

international

A(n) ____ strategy involves a partnership with a long-term commitment that can be used to acquire new technology and information.

joint venture

____ is the form of international business involvement in which two or more firms have an equity position in an operation.

joint venture

Colleges and Universities allow shirts, hats, blankets, and many other products to be sold with school logos on them. The schools get a percentage of the sale. The schools have chosen to use a(n) ____ strategy to generate more income.

licensing

Which of the following is NOT a reason for using a licensing agreement as a means of entering international business?

low levels of risk