BMGT26 Forms of International Business Quiz

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Which method of international business involves the inflow of goods into the home country's market?

Licensing

Importing (correct)

Franchising

Outsourcing

What is a common problem associated with the licensing method of international business?

Problems with local marketing agents

Lack of control over technology (correct)

Inability to realize location and experience curve economies

High transport costs

Which form of international business allows a company to distribute and sell standardized products in the international market?

Outsourcing

Joint ventures

Franchising

Licensing (correct)

What is a potential disadvantage of importing and exporting in international business?

High transport costs Signup and view all the answers

Which method of international business involves a company using ownership rights to distribute and sell products internationally?

Licensing Signup and view all the answers

What is the primary difference between franchising and joint venture?

Franchising involves giving the right to conduct business using the parent company’s name, while joint venture involves a contract between an international company and a local company. Signup and view all the answers

What is a disadvantage of franchising mentioned in the text?

Lack of control over quality. Signup and view all the answers

What advantage of joint venture is highlighted in the text?

Access to local partner's knowledge. Signup and view all the answers

What is the key difference between outsourcing and offshoring?

Outsourcing means giving out contracts to international firms, whereas offshoring involves setting up independent operations in multiple countries. Signup and view all the answers

Which type of companies have independent operations in each country?

Multinational Companies Signup and view all the answers

Which method is mentioned as being effective when the cost of conducting certain business processes is cheaper in another country?

Outsourcing Signup and view all the answers

What is a disadvantage of joint venture according to the text?

Inability to engage in global strategic coordination. Signup and view all the answers

What is a key feature of multinational companies as per the text?

Setting up independent operations in multiple countries. Signup and view all the answers

What is a similarity between franchising and licensing as per the text?

Both involve giving the right to conduct business using the parent company’s name/ brand and products. Signup and view all the answers

What advantage does outsourcing provide, according to the text?

Cost-effectiveness when certain business processes are cheaper in another country. Signup and view all the answers

BMGT26 Forms of International Business Quiz

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