If Shana's company decides to open another company in France but centralizes its management in the United States, it would be considered a ________.
A) transnational corporation
B) global company
C) borderless organization
D) multidomestic corporation
Question 2Melamark's advisor on global affairs is concerned that ________ carries too much risk.
A) a strategic alliance
B) franchising
C) setting up a foreign subsidiary
D) a joint venture
Question 3Melamark LLC has customers on four continents. It would like to increase its global presence as a supplier to its global customers. The most expensive option would be to ________.
A) form a strategic alliance with an existing company in another country
B) directly invest in a production facility in another country
C) export from a single production plant
D) license producers in several countries
Question 4A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities in a foreign country constitute a ________.
A) franchising agreement
B) strategic alliance
C) foreign subsidiary
D) joint venture
Question 5In 1984 Toyota and General Motors formed a company called NUMMI to build cars carrying both the General Motors and Toyota brands. NUMMI is an example of a(n) ________.
A) equity strategic alliance
B) joint venture
C) global venture
D) nonequity strategic alliance
Question 6Adam has been hired by an organization that has a partnership with a foreign company. Both the partners share resources and knowledge while developing new products. Adam's organization has formed a ________.
A) licensing company
B) franchising company
C) strategic alliance
D) foreign subsidiary
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