Which of the following most likely supports the argument of Echo managers to outsource some of the firm's value-chain activities?
A) Echo managers could reduce the wages of U.S.-based employees and sub-contractors.
B) Echo could save money by offshoring data processing and accounting activities.
C) Echo managers could implement a new marketing campaign for foreign markets.
D) Echo could partner with a U.S.-based competitor and share common foreign suppliers.
Question 2Which of the following describes a cross-licensing agreement?
A) allocation of exclusive rights to a licensee to prevent competition
B) an agreement between two or more companies not to compete in each other's home countries
C) an exchange of explicit knowledge for tacit knowledge
D) the exchange of intangible property rights between two or more companies
Question 3The consulting firm might suggest which of the following if Fun Play managers express an interest in outsourcing doll eye production to Kongha Toy Parts, Ltd., which it owns in part?
A) offshoring
B) contract manufacturing
C) component manufacturing
D) captive sourcing
Question 4When an American tourist exchanges dollars for yen at a Tokyo bank, which of the following is most likely applied?
A) the forward rate
B) the spot rate
C) the currency rate
D) the rate of spread
Question 5Which of the following should most likely be considered in making the decision to outsource Echo value-chain activities?
A) What are the long-term strategic goals and objectives of Echo?
B) Would Echo engineers be willing to relocate to a foreign nation?
C) How many of Echo's competitors outsource business activities?
D) Can Echo find employees for a customer service center in the U.S.?
Question 6Which of the following is most likely a potential benefit of Echo globally sourcing some of its value-chain functions?
A) heightened communications awareness
B) increased activity in e-commerce sales
C) strong intellectual property protection
D) improved manufacturing productivity
Question 7In a short essay, describe the two leading theories of international trade and investment. What do economists and scholars hope to learn from an analysis of international trade and investment?
What will be an ideal response?