Which of the following tend to allow market forces to determine business strategies, and to
permit private ownership of property?
a. Eastern nonmarket economies
b. Economic communities
c. Oil-exporting countries
d. Market economies
e. Developing countries
Question 2Japanese businesses have moved much of their production to Thailand because labor costs
are much cheaper. The text would suggest this is an example of
a. efficient business practices.
b. a strategic alliance.
c. licensing.
d. outsourcing.
e. exporting.
Question 3The highest level of involvement in international business is
a. importing/exporting.
b. licensing.
c. joint ventures/strategic alliance.
d. franchising.
e. direct investment.
Question 4What is apparently the major reason so many companies from all over the world are
embracing the maquiladoras concept?
a. Lower transportation costs
b. Efficient use of raw materials
c. Ability to avoid regulatory problems
d. Improved technology
e. Cheap labor
Question 5Elmore Incorporated has just signed an agreement to furnish its technology to a foreign
company that will manufacture Elmore's product, sell it in the foreign country, and pay
Elmore a specified percentage of its sales. This kind of arrangement is known as
a. a joint venture/strategic alliance.
b. licensing.
c. direct investment.
d. exporting.
e. global involvement.
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