41)Smith Enterprises seeks to entice one of its star managers to move to Iraq to oversee its negotiations for Iraqi oil. The firm will likely need to offer a _____ to a managers base salary.

hardship premium

tax equalization adjustment

cost-of-living allowance

bonus

42)General Mills and Nestle created a joint venture which fully integrated all the efforts necessary to compete against Kellogg in the European cereal market. This is an example of a(n) _____ alliance.

functional

production

comprehensive

marketing

43)When two or more firms agree to work together and create a joint owned firm to promote mutual interest, ________ has occurred.

a licensing agreement

a franchise agreement

a joint venture

a greenfield investment

44)Mercedes hired managers from the local community in Kentucky as operations managers in its plant there. Mercedes used _____.

host country nationals

parent country nationals

third country nationals

both a and b

45)Which of the following long-term investments is particularly vulnerable to economic exposure?

property

plant

equipment

all of the above