1. Factors that must be considered in assessing foreign markets are the following EXCEPT:

political environment

level of competition

presence of home country multinationals

legal environment

market potential

2. Franchising is different from licensing for the following reason:

there are no agreements on compensation for franchising

franchising is more of a domestic strategy

franchisors do not allow franchisees any flexibility to adapt to local conditions

franchisors tend to have more control and provide more support for franchisees than licensors do for licensees

there are no detailed agreements for franchising

3. Which of the following statements is not correct?

Foreign direct investment is a form of strategic alliance.

Strategic alliance results from cooperation among two firms, rather than one company acting alone.

Strategic alliance can either be an international strategy or a domestic strategy.

Joint venture is a form of strategic alliance.

Strategic alliance is a mode of entry to foreign countries.

4. People who tend to be less concerned about job security or job stability are likely to be from cultures with ______________.

passive goal behavior

uncertainty acceptance

power avoidance

lifetime employment

uncertainty avoidance

5. _____________ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives.

Marketing

Management

Operations management

Outsourcing

Financing