Which of the following statements about Zara is most likely FALSE?
A) Zara puts fewer products on clearance racks than most of its competitors in the industry.
B) Zara's large advertising budget generates word-of-mouth and attracts new buyers.
C) New products and designs are delivered to Zara stores every three to four weeks.
D) Most of Zara's products move through the firm's distribution center in Spain.
Question 2The headquarters-based compensation method bases the expatriate's compensation on the salary of a comparable job in the city where the MNE has its headquarters.
Indicate whether the statement is true or false
Question 3U.S.-based franchises, such as McDonald's, ensure consistency in their food by shipping all the necessary ingredients from the United States and avoiding unreliable suppliers in foreign markets.
Indicate whether the statement is true or false
Question 4Exclusive licensing agreements are characterized by which of the following?
A) The licensor is not allowed to interfere with the production or marketing of the licensed asset.
B) The licensor may not sell the licensed asset to other companies in a certain territory of the same country.
C) The licensee cannot cancel the contract with the licensor even if sales of the licensed asset are poor.
D) The licensee is prohibited from sharing the licensed asset with another company within a specified region.
Question 5Practical predeparture training for the expatriate is often geared toward developing his or her sensitivities to overcome culture fright.
Indicate whether the statement is true or false
Question 6In a licensing agreement, which of the following is responsible for local sales?
A) the licensee
B) patent owner
C) the licensor
D) copyright partner
Question 7Management contracts are especially useful in markets that lack skilled local workers to oversee large scale facilities, such as airports and hospitals.
Indicate whether the statement is true or false
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