All of the following are typical characteristics of cross-border contractual relationships except ...

All of the following are typical characteristics of cross-border contractual relationships except ________.
 
  A) involves the exchange of intellectual property and services
  B) generates a consistent level of earnings from foreign operations
  C) allows firms to make changes and be flexible
  D) provides the focal firm with a high level of control

Question 2

How can a cross-border contractual relationship help focal firms with public relations issues?
 
  A) Domestic complaints against the MNE can be minimized.
  B) The fair hiring practices of the MNE can be emphasized.
  C) The local partner can protect the MNE from criticism.
  D) The local media can contact the local managers.

Question 3

What is the purpose of a firm integrating an industrial design into a product?
 
  A) eliminate the possibility of the design being copied
  B) improve a product's performance and marketability
  C) protect firms from intellectual property theft
  D) identify the product with a young demographic

Question 4

Which of the following is not a geographical indication?
 
  A) Champagne
  B) California Raisins
  C) Florida Oranges
  D) Made in China

Question 5

Which of the following items is most likely not an example of a trademark licensing agreement?
 
  A) a collection of short stories by Stephen King
  B) a children's toothbrush with Spiderman on the handle
  C) a sweatshirt with the Dallas Cowboys' name and logo
  D) a bath towel with Martha Stewart's name on the tag

Question 6

Why are licensing agreements in foreign markets beneficial to Disney?
 
  A) Licensees are able to meet customer needs by using Disney logos on products appropriate for the local market.
  B) Disney is able to better distribute its U.S.-made products through local intermediaries in foreign markets.
  C) Disney licensees have been trained in the United States and are able to balance corporate needs with local tastes.
  D) Licensees in foreign markets are responsible for advertising upcoming Disney movies in the local media.

Question 7

How can an MNE operating in a developing country have a positive influence on labor policies? Illustrate your answer with an example.
 
  What will be an ideal response?

Question 8

Coca-Cola collaborates extensively abroad, but it refuses collaboration that might imperil control of its core competency. As a result, which of the following is NOT one of its international collaborative forms?
 
  A) sharing ownership in the production of its secret formula concentrate
  B) using franchisers to bottle, sell, and deliver Coke beverages
  C) licensing Coke's trademark for use on products in which it lacks skills
  D) forming joint ventures with companies that provide supplies for Coke products