1 - Some organizations choose to sell their products to a domestic intermediary (i.e., resident in the organization's country) while the intermediary takes responsibility for finding buyers, establishing distribution routes, and obtaining payments in foreign markets. This type of activity is known as which of the following? a. Export forwarding b. International routing c. Indirect exporting d. Supplier-based contracting 2 - Which of the following commonly refers to organizations that: are wholesalers that purchase goods locally and sell them to international markets; use salespeople, stock lists and sometimes their own retail outlets to sell their purchased goods in foreign markets; have expert knowledge of international markets; and have established distribution and selling channels? a. Confirming houses b. Export buyers c. Trading houses d. Network buyers 3 - Which form of indirect exporting involves a buyer agreeing to purchase a set quantity of goods on condition that the seller purchases the buyer's products in return? a. Countertrade b. Offer back c. Buyer-seller loan d. Seller-buyer trade

4 - Hercules Parts LLC is a U.S. based aerospace parts provider for a number of well- established aircraft types that are used in many countries. In Europe, the company has

a foreign manufacturing partner in Hungary. Hercules Parts LLC provides the manufacturer in Hungary with raw components, and designs that are needed to produce aircraft parts. The parts and designs are purchased from the manufacturer in the U.S. and then their Hungarian partner distributes, markets, and sells the parts to Hercules Parts LLC customers are located in Europe. This transfer-related market entry strategy is known as which of the following? a. Tendering b. Subcontracting c. Alliance contracting d. Customer sharing

5 - Which is not a type of transfer-related entry strategy? a. Licensing b. Franchising c. Subcontracting d. Greenfield investments 6 - A small-scale Thai gourmet foods manufacturer is looking for an international partner to expand its capacity and market share. Which is not a step the organization should take to locate this partner? a. Assess organizational readiness b. Define business partner characteristics c. Look at how managers have experience dealing with people of your country d. Determine the firm's complementarity 7 - An American pizza company is seeking out new franchisees in the Netherlands. Which are not two selection criteria it might identify for the new franchisees? a. Experience in the pizza/fast food or restaurant industry and commitment. b. Enough financial resources for the venture and the Ability to manage the franchise c. Number of points of sales and capacity to attract customers d. Legal stand in the country and resourcefulness. 8 - Which of the following is an advantage of using direct exporting? a. It effectively addresses differences in regulations and cultures between the source market and the target market. b. It requires the exporter to invest very little in terms of resources, such as personnel and finances. c. It provides the exporter with a degree of control over the process and how the product or service is sold. d. It does not require the exporter to have in-house expertise related to shipping and organizing payments. 9 - A fast-food company is providing foreign purchasers with a complete business package, including operational instructions, staff training and advice. What is the term used to describe this market entry strategy? a. First-generation franchising b. Second-generation franchising c. Licensing d. Subcontracting

10 - RLC Media Inc. has produced a series of animated children's shows, which are being made available in many countries in local languages. If the company grants permission to an organization in another country to use its intellectual property for a defined period, what this is called? a. Franchising b. Property-sharing c. Expiry rights d. Licensing 11 - ABC Inc., a cycle frame manufacturer located in the United States, and Hindustan Parts LLP, a bike parts supplier in India, has both contributed finances and resources to create a new sales company together in India called ABC-Hindustan Parts LLP. The new company will source parts from the two parent companies and therefore have access to a strong product line. They believe that their combined expertise will ensure they have greater market penetration and greater profit potential than any other entry strategy. This market entry approach is known as which of the following? a. Loosely coupled strategic alliance b. Joint venture c. Brownfield investment d. Branch office 12 - Clearchrome Faucets is a manufacturer of a popular line of faucets in Canada. The company has no presence in the U.S. and has been in discussions with Maple Leaf Bath, a much larger distribution company that is based in Canada but with an extensive distribution network in the U.S. The larger company has offered to add Clearchrome Faucets to their product catalog for a share of the profits on all sales. What is this indirect exporting approach commonly called? a. Export riding b. Piggybacking c. Brand sharing d. Co-listing 13 - Hal-mup Pharma GmbH is a Germany-based generic drug manufacturer that has decided to set up a new production facility in India. The company has purchased land and has spent the last two years organizing the construction of the new facility, which will be fully operational within the next 12 months. This type of market entry approach is known as which of the following? a. Bluefield investment b. Greenfield investment c. Brownfield investment d. White slate investment

14 - Alpine Solar Inc. is a European company that has plans to establish manufacturing in Mumbai, India. They have been attracted by the possibility of low local taxes and subsidies for new construction, but they also want to ensure they maintain their own corporate culture. After looking in the Mumbai market, they have found no existing facilities that are suitable (only land that could be used for new construction) and no local partners that appear to offer capabilities that would be helpful. Which of the following approaches would best suit the company's needs? a. Joint venture b. Brownfield investment c. Acquisition d. Greenfield investment

15 - Which is not a difference between franchising and licensing? a. Franchisees will use the organization's name, while licensees will generally not. b. Franchisees receive ongoing training and business support, licensees generally, do not receiving ongoing support. c. Licensing requires valid patenting worldwide, while franchising does not. d. Franchisees will only offer authorized products and services, whereas licensees may deal in a wide range of products and services.

16 - A Canadian agricultural equipment manufacturing company is deciding whether to use direct or indirect exporting as its market entry strategy for Russiaits new target market. The company has previous experience exporting internationally and has strategies in place to mitigate currency fluctuations. However, it has no previous experience working in Russia or Eastern Europe and does not possess language or cultural competence. It wants to achieve maximum profit while maintaining control over the marketing and pricing of its products. Which of the following strategies should the Canadian company use to penetrate this new market? a. Direct export by the organization itself b. Direct export using an agent c. Direct export using a distributor d. Indirect export 17 - Many companies that are entering new foreign markets using direct exporting choose to work with a commission-based salesperson who already has established customer contacts in the sector of interest. This type of assistance is commonly provided by which of the following? a. Agent b. House representative c. Distributor d. In-country operator

18 - Whistle-stop Microbrew is a small brewing company located in Vancouver, Canada that has already established successful ongoing exports to three countries in Asia by using a well-positioned agent in each country. Which of the following is an accurate summary of the services typically provided by an agent? a. Overcome local language barriers, familiar with business culture, buy and resell goods to major customers b. Overcome local language barriers, familiar with the local business culture, make purchases on behalf of major customers c. Overcome local language barriers, familiar with the local business culture, make sales to major customers, arrange local financing for buyers d. Overcome local language barriers, familiar with the local business culture, make sales to major customers liaise with clients regarding sales orders

19 - Which entity emerged from the General Agreement on Tariffs and Trade, was formally established in 1995 to serve as the primary global international organization dealing with the rules of trade between nations ensures that trade flows smoothly, predictably and freely, and has its headquarters in Geneva, Switzerland? a. GATT b. WTO c. WTCA d. ICC 20 - Many countries maintain quotas and other regulations that discriminate against foreign products to protect their domestic manufacturers. What are these restrictions called? a. Anti-competitive regulations b. Restrictive foreign rules c. Non-tariff barriers d. Protective domestic actions