If a computer contains a microprocessor from Costa Rica and a hard disk drive from the
Philippines, the computer manufacturer, who is based in Texas and operates across Europe and
West Asia, most likely uses ________ as an entry strategy. Correct Ans-global sourcing
The relocation of a business process or entire manufacturing facility to a foreign country is
known as ___. Correct Ans-Offshoring
How does the acquisition of a foreign company most likely benefit a focal firm in the foreign
market? Correct Ans-The focal firm can extend its market reach through readily available
distribution networks.
Which of the following is provided by the licensor in a licensing agreement? Correct Ans-a
combination of intellectual property and technical information and assistance
Which of the following represents an infrastructural factor that firms must consider when
selecting an FDI location? Correct Ans-availability and quality of local manufacturing
Financing or other resources that a government grants to a firm or group of firms, to ensure
their survival or success is referred to as a ________. Correct Ans-subsidy
Which of the following entry strategies do most firms use in the absence of high
tariffs? Correct Ans-exporting
, Which of the following is an example of nontariff trade barrier? Correct Ans-The U.S.
Department of Commerce announced that white sugar imports will be limited to 7,500 million
tons.
___ are checkpoints at the ports of entry in each country where government officials inspect
imported products and levy tariffs. Correct Ans-customs
Government impose export controls for the purpose of ___. Correct Ans-Preventing the
export of certain products to certain countries
Firms use foreign trade zones to ________. Correct Ans-assemble foreign dutiable materials
and components into finished products, which are then re-exported
Governments impose defensive barriers to ___. Correct Ans-All the above.
Promote national security
Protect workers
Safeguard industries
___ is (are) at odds with free trade, the unrestricted flow of products, services, and capital
across national borders. Correct Ans-Government intervention
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