( ) 1. The lowering of trade and investmentbarriers:A. protects domestic industries from foreigncompetition.B.was not an agenda of the Uruguay Round.allows firms to base production at optimallocations outside their home country.C.D.creates an unfavorable environment forFDI.() 2. Which of the following is an advantageof choosing exporting as a mode of entryinto foreign markets?A.A firm can avoid the cost of establishingmanufacturing operations in the host country.B. A firm shares the development costs andrisks with its host partner.C. A firm can earn returns from processtechnology skills countries where FDI isrestricted.D.A firm has access to local partner'sknowledge.( )3. n which of the following modes of entry intoforeign markets does a firm agree to set up anoperating plant for a foreign client and hand overthe plant when it is fully operational?Franchising agreement. B. TurnkeyA.projectC. Licensing agreement D. Wholly ownedsubsidiary()4. Which of the following creates anunfavorable environment for innovations andentrepreneurship?A. Market economy B. Economic freedomC.tate monopoly in production D.Privatization( )5. Which of the following involves granting aforeign entity the right to produce and sell thefirm's product in return for a royalty fee on everyunit sold?Exporting C.A. Outsourcing B.Licensing D. Diverging()6. When Shop Smart opened its first supermarket in China it was unable to generate anysales. After conducting a research, it wasunderstood that the local sales personnel found itdifficult to communicate with the American storemanagers. In addition, Chinese consumers found itdifficult to shop in the American way. Shop Smart'sfailure in China can be attributed to the lack of:A.cross-cultural literacyB. classconcoi isingDiverging()6. When Shop Smart opened its first supermarket in China it was unable to generate anysales. After conducting a research, it wasunderstood that the local sales personnel found itdifficult to communicate with the American storemanagers. In addition, Chinese consumers found itdifficult to shop in the American way. Shop Smart'sfailure in China can be attributed to the lack of:cross-cultural literacy.A.B. classconsciousness.C. a first-mover advantage. D. Confuciandynamism.C)7. Which of the following is one of thelimitations of exporting that leads companiesprefer FDI over exporting?B.A. The presence or threat of trade barriers.The costs of acquiring a foreign enterpriseThe costs of establishing production facilitiesin a foreign countryC.D.The risk of giving away valuabletechnological know-how to a potential foreigncompetitor()8. In order to build large production units andexpedite certain routine government actions relatedto this, Scorpius Inc. made legal payments to thegovernment officials of a host nation. Suchpayments are typically referred to as:A. bribes. B. speed money. C. customsduties. D. excise taxes.()9.Axiom International, an Australiancompany, wants to expand its operations to China,a country that is politically, culturally, andeconomically different. The firm needs to select amode of entry that would give it access to localknowledge, allow sharing of development costs andrisks, and also be politically acceptable. Which ofthe following modes of entry into foreign marketsis most suitable for Axiom International?A.C.Wholly owned subsidiary B. Joint ventureExporting D. Greenfield investments( )10. Which of the following is true regarding theinflow of FDI?A. Even though developing nations still accountfor the largest share of FDI inflows, FDI intodeveloped nations has increased markedly.B. Africa has historically been the largestrecipient of inward FDI.C. The United Kingdom and France havehistorically been the smallest recipients of inwardFDI.D. There has been an increase in the importanceof China as a recipient of FDI.Result

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() 1. The lowering of trade and investment Darriers: A. protects domestic industries from foreign competition. B. was not an agenda of the Uruguay Round. allows firms to base production at optimal outside their home country. creates an unfavorable environment for ocations D. FRI