EOC Questions 4. International Opportunities c. Explain why MNCs such as Coca Cola and PepsiCo, Inc., still have numerous opportunities for international expansion 5. International Opportunities Due to the Internet a. What factors cause some firms to become more internationalized than others? b. Offer your opinion on why the Internet may result in more international business. 11. Exposure to Exchange Rates. McCanna Corp., a U.S. firm, has a French subsidiary that produces wine and exports to various European countries. All of the countries where it sells its wine use the euro as their currency, which is the same as the currency used in France. Is McCanna Corp. exposed to exchange rate risk? 13. Methods Used to Conduct International Business. Duve, Inc., desires to penetrate a foreign market with either a licensing agreement with a foreign firm or by acquiring a foreign firm. Explain the differences in potential risk and return between licensing with a foreign firm, and acquiring a foreign firm. 15. Impact of Political Risk. Explain why political risk may discourage international business 35 EOC Questions 4. International Opportunities c. Explain why MNCs such as Coca Cola and PepsiCo, Inc., still have numerous opportunities for international expansion 5. International Opportunities Due to the Internet a. What factors cause some firms to become more internationalized than others? b. Offer your opinion on why the Internet may result in more international business. 11. Exposure to Exchange Rates. McCanna Corp., a U.S. firm, has a French subsidiary that produces wine and exports to various European countries. All of the countries where it sells its wine use the euro as their currency, which is the same as the currency used in France. Is McCanna Corp. exposed to exchange rate risk? 13. Methods Used to Conduct International Business. Duve, Inc., desires to penetrate a foreign market with either a licensing agreement with a foreign firm or by acquiring a foreign firm. Explain the differences in potential risk and return between licensing with a foreign firm, and acquiring a foreign firm. 15. Impact of Political Risk. Explain why political risk may discourage international business 35