1.When a firm ships product under EXW trade terms, the seller is responsible for the product until it reaches the buyers premises.

true or false

2.A firm should favor concentrated production if:

a.

There are low trade barriers for the product.

B.

The product value density (value to weight ratio) is high.

C.

The minimum efficient scale is high.

D.

The required investment in fixed costs is low.

E.

Only answers a, b, and c are correct.

3.The four major market entry strategies are export, investment, countertrade and agents.

True or false

The Puig Doria case shows:

a.

The lack of dedication by top management to international business will often result in frustration with international sales.

B.

A firm must know what makes them successful in their own country.

C.

Export trading companies can't successfully sell jewelry.

D.

Only statements a and b are true

E

All of the statements, a, b and c are true

4."Country of origin effect" refers to consumer attitudes toward the place where a product is sold.

True or false

5.Country of origin effect" refers to consumer attitudes toward the place where a product is sold.

True or false

6.If a big Mac costs 5.00 in London and $4 .00 in the US, according to the purchasing power parity theory, the exchange rate should be $1.25/.

True or false

7.Licensing is a way for one firm to allow another to use its intellectual property in exchange for payments.

True or false

8.All of the following are considerations in global product strategies, except:

a.

Cultural differences.

B.

Increasing government debt.

C.

Possible counterfeiting of the product.

D.

Laws and regulations.

E.

Economies of scale.

9.Looking at the cumulative stock of foreign direct investment (FDI), the United States has been the largest source as well as the largest recipient.

True or false

10.The experience curve shows that increased production leads to higher unit costs.

True or false