The success of a franchise in a foreign market is most dependent on which of the following?
A) franchisor trademarks
B) strong local intellectual property rights
C) franchisee capabilities
D) franchisor involvement
Question 2Which of the following terms is used to refer to a business arrangement in which a focal firm plans and implements a major facility abroad and upon completion gives control of it to trained local personnel?
A) build-operate-transfer
B) management contract
C) turnkey contracting
D) leasing contract
Question 3Which of the following best characterizes the functions of the World Bank?
A) monitor interest rates in emerging economies
B) provide loans and technical assistance to developing countries
C) offer financial assistance to small businesses
D) initiate trading for impoverished nations
Question 4Which of the following most likely supports an ACC decision not to enter a licensing agreement with the Chinese firm?
A) ACC is considering entering the Chinese market through FDI in the future.
B) ACC desires a low-risk, low-cost strategy to internationalize the Wonder Cat character.
C) The popularity of the Wonder Cat character in China would generate high royalties.
D) ACC wants to maintain firm control of how the Wonder Cat character is used.
Question 5A hardship allowance nullifies the risk that an expatriate will suffer a decline in his or her standard of living due to the exorbitant expense of a particular city.
Indicate whether the statement is true or false
Question 6In Abu Dhabi, a collection of companies received a multibillion dollar contract to build an integrated processing plant for natural gas. This is an example of which of the following?
A) turnkey contracting project
B) build-operate-transfer project
C) management contract project
D) leasing contract project
Question 7Leasing is especially beneficial to which of the following?
A) advanced economies
B) mixed political systems
C) socialist market economies
D) developing economies
Question 8Professional service firms, such as PricewaterhouseCoopers, often enter large international markets through FDI but usually use ________ to enter small markets.
A) franchisees
B) affiliates
C) managers
D) consortiums
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