1. When utilizing sales agents for international market entry, companies maintain a high degree of control.
True
False
2. When comparing the two, Export Trading Companies (ETC's) are similar to Export Management Companies (EMC's), except that ETC's:
Have more experience exporting than EMC's
Are more risky for manufacturers
Sell competitive products from multiple manufacturers
Take possession of the goods and assumes the risk
3. Franchising is actually a form of what market entry strategy?
Exporting
Greenfield Investment
Merger and Acquisition
Direct Sales
4. A primary challenge with doing business in China is that government policies favor domestic companies over foreign ones.
True
False
5. China continues to decrease its environmental regulations and protections in order to be competitive globally.
True
False
6. The Foreign Corrupt Practices Act (FCPA) allows U.S. companies to provide gifts and payments to foreign government officials, as long as it is common practice in that country.
True
False
7. When entering into international agreements for distribution, it is better to "employ" individuals, as opposed to having independent contractors.
True
False
8. It is preferred to utilize foreign legal systems for the enforcement of contracts, as opposed to international arbitration.
True
False
9. Common ethical issues in business often involved
Employment practices
Government corruption
Human rights
Moral obligation
All the above
10. In the IKEA in Saudi Arabia case, the primary ethical and legal issue involved laws against comparative advertising.
True
False
11. Activity-based pricing for international is
the practice of charging customers for each value added process.
when companies include per unit costs specific to international, as opposed to all costs for both international and domestic sales.
Pricing based on the number of manufacturing processes
None of the above
12. When entering Canada, Target found that cross-border trade is relatively easy because of NAFTA.
True
False
13. In the Volkswagen and Tata Motors case, a primary benefit Tata brought to the strategic alliance was:
Cheaper labor
a well established advertising budget.
high quality technology produced at low cost
access and understanding of local consumer needs.
14. The final overall costs for products being exported to a foreign market, including unit cost, insurance, freight, tariffs/duties and taxes is known as:
activity cost
landed cost
foreign pricing
price elasticity
15. Briefly discuss three (3) reasons why Target was not successful in entering Canada.
16. When dealing with international legal contracts, how should companies accomplish their objectives without consulting an experienced international contracts lawyer?
They should not engage without consulting a lawyer!
Utilize the same contracts they use in the U.S.
Use an online service, like LegalZoom.com
Write their own agreements