2. Explain why a company would use a licensing agreement.

3. What are the advantages and disadvantages of a franchise?

4. Explain why a company would choose a licensing agreement over a franchise.

5. What are the advantages ad disadvantages of a franchise?

6. Why would a company set up a foreign subsidiary?

13. A Canadian manufacturer of hearing aids is planning to expand into china. It is deciding between licensing agreement, a joint venture, or a foreign subsidiary.

A) What are the advantages and disadvantages of each of these types of international business?

B) Which form of international business do you recommend? Why?

14. State three Canadian businesses that lose because of a high Canadian dollar. Explain.

15. State three Canadian businesses that win because of a high Canadian dollar. Explain.

20. A Canadian company can produce a mattress using $160 worth of raw materials and $120 worth of labor, and shipping costs will b $27. A Chinese company can produce the mattress using $160 of raw materials and $40 for labor, with $50 shipping. Assume that the Canadian tariff for mattresses is 50%. The Canadian retailer has a profit margin of 150%.

A) Calculate the price of the Canadian-produced mattress.

B) Calculate the price of the Chinese-produced mattress before the tariff.

C) Calculate the price for the Chinese-produced mattress after the tariff.

21. The united states issued a 300% tariff on all Roquefort cheese imported into the USA from France. The tariff was imposed as a penalty against France because it refused to import hormone-fed beef from the united states. Roquefort is considered the king of cheese in France and this tariff is seen as a symbolic move.

a) Suppose a specialty cheese store in Washington imports USD $30,000 worth of Roquefort cheese. Calculate the tariff on the cheese.

b) Who wins and who loses with the tariff?

c) What do you think are the tactics used by the united states?