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Page 18
insurance, legal assistance, and warehousing to the cooperative. This business would
most
likely
be called a(n)
Answer
trading company.
export specialist.
contract wholesaler.
licensor.
strategic partner.
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Question 77
Multiple Choice
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Question
A ___________ is an organization that links buyers and sellers in different countries but is
not involved in manufacturing.
Answer
trading company
exporter
joint venture
strategic alliance
licensee
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Question 78
Multiple Choice
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Question
Questor Corporation owns the Spalding brand name but does not produce a single golf club
or tennis ball. This arrangement is an example of what type of involvement level for
international marketing?
Answer
Exporting
Trading
Joint venture
Strategic alliance
Licensing
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Question 79
Multiple Choice
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Question
If Caterpillar wished to reach the market in Malaysia but was leery of a direct investment in
the country, it might provide a Malaysian operation with the knowledge to produce and
market its products in exchange for a commission. This type of arrangement is called
Answer
licensing.
exporting.
a strategic alliance.
a joint venture.
contract manufacturing.
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Question 80
Multiple Choice
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Question
What level of commitment in international marketing may be
most
attractive when the
political and economic stability of a foreign country is questionable?
Page 19
Answer
Joint ventures
Direct ownership
Exporting
Limited exporting
Licensing
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Question 81
Multiple Choice
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A special form of licensing in which one company grants another company the right to market
its product in accordance with its standards in exchange for a financial commitment is called
Answer
a joint venture.
contract manufacturing.
direct licensing.
franchising.
a strategic alliance.
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Question 82
Multiple Choice
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In many countries, Wendy's allows foreign businesspeople to use its name, logo, methods of
operation, advertising, and products. In exchange, Wendy's receives a financial commitment
and an agreement to conduct business in accordance with its standard of operations.
Wendy's is engaging in
Answer
contract manufacturing.
licensing.
franchising.
exporting.
direct investment.
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Question 83
Multiple Choice
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Question
Franchising offers all the following benefits for franchisers
except
Answer
franchise agreements require a certain standard of behavior from franchisees,
which helps protect the franchise name.
franchisers can retain control of their name while increasing global penetration
of their products.
the franchisee's revenue stream is fairly consistent because franchisers pay
fixed fees and royalties.
the franchiser's revenue stream is fairly consistent because franchisees pay
fixed fees and royalties.
franchisers do not have to put up a large capital investment.
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Question 84
Multiple Choice
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Which of the following would be a benefit to a franchiser, such as Jiffy Lube, in expanding
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