1. Gray market is driven by several reasons. One is that products which are sold in Gray Market are always cheaper than those in the retail stores.

a.False

b.True

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2. Which method of market entry offers the most flexibility in product line offering, and generally leads to a broader product line?

a.Wholly owned subsidiary

b.Licensing

c.Franchising

d.Joint venture

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3.

Key questions about value-added activities in the value chain include "which activities" and "where."

a.True

b.False

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4. Starbucks the coffee company, now is selling ice cream as well. This is an example of product line extension.

a.False

b.True