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240. When a company's strategy is ________, the firm makes arrangements for a foreign
manufacturer to produce the product. The domestic company's label and/or trademark are
attached to the completed product.
241. A __________ is a partnership in which two or more companies (often from different
countries) join together and share the risk and costs in order to undertake a major project.
242. A __________ represents a long-term partnership between two or more companies
established to help each firm build competitive market advantages, without sharing the cost of
risk.
243. An advantage of forming a joint venture is:
244. A form of foreign direct investment, where a domestic company purchases a company in
a foreign country to produce a similar product or service, is a:
245. When foreign firms build production facilities in the United States, they are engaging in:
246. A risk unique to firms with direct investment in a foreign county is the potential takeover
of the firm's assets by the government of that country. This takeover is called a(n):
247. The __________________ is a firm that has made sizeable investments and has a physical
presence in several foreign countries as a manufacturer and marketer of products and services.
248. A fast-growing form of foreign direct investment is ____________, which are government-
controlled investments in foreign companies.
249. A specialized organization that assists businesses in creating relationships with foreign
customers and suppliers is known as a(n):
250. A benefit of contracting with export trading companies is:
251. One of the purposes of Export Assistance Centers is to:
252. When entering a foreign market, Mountain Stream Brewery entered into an agreement
with a local firm to brew and market Mountain Stream's beer. This is an example of:
253. Licensing is a popular strategy because:
254. Using contract manufacturing as a strategy to reach global markets offers firms the
advantage of:
255. Companies may have several reasons for creating joint ventures. Which of the following
statements is one reason why firms may decide to form a joint venture?
256. For a firm to be considered a multinational corporation, which of the following conditions
257. A fast-growing form of foreign direct investment is sovereign wealth funds (SWFs). Why
do these investments by governments with surplus cash flows worry trade experts?
258. The Dabble Corporation wants to begin exporting its products. The company needs
advice about how to get started, as well as trade-finance support. The federal government has
established _____________ to help companies like Dabble Corporation.
259. The quinoa seed is in high demand in wealthier countries such as the U.S. and Japan.
Approximately 97% of all quinoa production comes from small farmers in Bolivia and Peru who
farm at high elevations. The seed is considered highly nutritious and is sold to markets in other
countries. The seed is now considered an important __________ for Bolivia and Peru.
260. Pepsi Cola entered into a long-term contract with a South African beverage company.
The contract calls for the South African firm to produce and market Pepsi Cola in South Africa.
Pepsi will receive royalties on each case of beverage sold. This is an example of:
261. McGowan Corporation of Ireland and Enomoto Enterprises based in Japan recently
produced a new electric car with rechargeable batteries that can be driven at high speeds for
long distances. They have shared the investment, each contributing important technological
expertise to the effort. These firms entered into a(n) ____ to build this car.
262. Boasting a $1.6 billion Ketchup brand, the Heinz Company is flying high with a 44%
increase in its sales of Indonesian-based ABC, a soy sauce company that it owns. ABC is a
_____________ of Heinz.
263. Nike _________________ its products in foreign countries, where labor is cheap and
production sites are owned by other companies. This strategy allows Nike to experiment in new
markets without incurring large start-up costs involved with building their own production
facilities.
264. If a Swiss chocolate firm purchases an American ice cream manufacturer, the American
ice cream manufacturer becomes a:
265. Which of the following statements is the most accurate observation regarding
multinational corporations?
266. Emerson, Inc., reported that it owns and operates 265 companies worldwide with 23% of
its sales coming from Europe, 18% from Asia, 46% from the U.S., and 13% from other parts of the
world. Clearly, Emerson exemplifies ______________.
267. Adam's Apple Corporation ships all of the apples from its orchards in Washington to a
single buyer in Japan. The firm's entire profits are derived from this international transaction.
Adam's Apple Corporation:
268. ExxonMobil Corporation refines and markets its petroleum products in many different
nations. In addition, Exxon's stockholders and managers come from many different nations. If
some of the nations where it operates decided to take over the assets of the company, this act
would constitute:
269. Which of the following terms describes the set of values, beliefs, rules, language, and
institutions held by a specific group of people?
270. ____________ describes an attitude held by some American businesspeople that American
culture is superior to all others.
271. Ethnocentricity means:
272. Which of the following sociocultural forces can have a significant impact on global
business operations?
273. Which of the following represents the value of one nation's currency relative to the
currencies of another country?
274. Global financial markets operate under a system of _________, where the supply and
demand for various currencies dictate their value at any moment in time.
