Distinguish between captive sourcing and contract manufacturing.
What will be an ideal response?
Question 2Given the high trade barriers in Mexico, the management of NAC is most likely to consider ________ to be an inappropriate entry strategy.
A) exporting
B) FDI
C) joint ventures
D) licensing
Question 3The ________ phase of globalization began around 1900 and was associated with the rise of electricity and steel production.
A) first
B) second
C) third
D) fourth
Question 4What is offshoring? Describe the types of industries that tend to offshore.
What will be an ideal response?
Question 5The first phase of globalization was characterized by the ________.
A) rise of steel production
B) rise of SMEs
C) dominance of MNEs in the agricultural industry
D) growth of railroads
Question 6A(n) ________ is a voluntary refusal to engage in commercial dealings with a nation or a company.
A) expropriation
B) sanction
C) boycott
D) confiscation
Question 7Which of the following would be most important for NAC managers to consider while taking a decision in favor of building a facility in Mexico or India?
A) Has NAC engaged in dumping in the past?
B) How would appliance parts and finished products be categorized when passing through customs?
C) Is employee empowerment culturally favored in Mexico and India?
D) What entry strategies are available in both countries which would allow NAC to minimize import barriers?
Question 8A(n) ________ is an official ban on exports to or imports from a particular country, in order to isolate it and punish its government.
A) embargo
B) confiscation
C) expropriation
D) sanction
Question 9A ________ is an area within a country that receives imported goods for assembly or other processing and subsequent re-export.
A) single market
B) trade bloc
C) foreign trade zone
D) common market
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