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<strong>MKT</strong> <strong>320</strong> <strong>Quiz</strong> 5<br />
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<strong>MKT</strong> <strong>320</strong> <strong>Quiz</strong> 5<br />
This quiz consist of 15 multiple choice questions and covers the material in Chapter 9<br />
1. Which of the following costs is covered under the licensing agreement?<br />
2. Which of the following types of incentives consist of special depreciation allowances, tax credits or<br />
rebates, special deductions for capital expenditures, tax holidays, and other reductions of the tax burden<br />
on the investor?<br />
3. Which of the following best describes portfolio investment?<br />
4. A firm with excess capacity assigns all fixed costs to domestic production. For the international<br />
markets, the firm uses a pricing scheme that focuses mainly on variable costs. This strategy allows the<br />
firm to offer its products abroad at a cost lower than at home. The firm in question could be accused of<br />
_____.<br />
5. Which of the following refers to the lack of symmetry between growing international markets with<br />
respect to cultural variables, legal factors, and other societal norms?<br />
6. The collaboration of two or more organizations for more than a transitory period to share assets, risks,<br />
and profits is referred to as a(n) _____.<br />
7. During downturns in the domestic business cycle, markets abroad provided an ideal outlet for high<br />
inventories. This kind of market expansion represents _____.<br />
8. Which of the following is a key impediment to international franchising?<br />
9. A company that starts exporting its products or services within two years of its establishment is called<br />
a(n) _____.<br />
10. In a _____, the supplier brings together a package of skills that will provide an integrated<br />
service to the client without incurring the risk and benefit of ownership.<br />
11. In _____, a parent company grants an independent entity the right to do business in a<br />
specified manner that includes the right to sell the parent company's products and use its name, along<br />
with its production, preparation, and marketing techniques.<br />
12. _____ demand is said to occur when large multinational firms who would like to maintain their<br />
established business relationships, encourage their suppliers to follow them abroad.<br />
13. In small and medium-sized firms, the initial decision to go international is usually made by the<br />
president, with substantial input provided by the _____.<br />
14. Which of the following is a proactive motivation to go international?<br />
15. Which of the following is a major deterrent to full ownership of FDI?
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