Reasons that a company might choose to acquire a business in a foreign country include all of the following except: Take advantage of free trade agreements Purchase local customer loyalty Local management understands local market conditions Circumvent tariffs & quota barriers Allows technolory fors and gan new manufacturing methods

Reasons that a company might choose to acquire a business in a foreign country include all of the following except: Take advantage of free trade agreements Purchase local customer loyalty Local management understands local market conditions Circumvent tariffs & quota barriers Allows technolory fors and gan new manufacturing methods

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 46E: Match each term in Column A with its related definition in Column B. Column A 1. ____________...

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Match each term in Column A with its related definition in Column B. Column A 1. ____________ Maquiladora 2. ____________ Import 3. ____________ Joint venture 4. ____________ Export 5. ____________ MNC Column B a. A company that does business in more than one country in such volume that its well-being and growth rest in more than one country. b. A company purchases materials or parts from another company that is located in a foreign country. c. A company sells its product to purchasers located in foreign countries. d. A type of partnership in which investors from one country co-own the enterprise with investors from another country. e. A manufacturing plant located in Mexico that processes imported materials and reexports them to the United States.
Blaze Textiles uses the services of Paytym, an e-commerce firm, to handle its payment and delivery processes while exporting its garments. Which of the following forms of internationalization entry tactic has Blaze used when it chooses Paytym as its partner to accomplish its exporting activities? The entry tactic of buy The entry tactic of franchising The entry tactic of euke The entry tactic of ally
Which of the following environmental factors can affect thecost of doing business in a foreign country? (Identify allcorrect answers.)a. The educational level of the workforce.b. Laws regulating the transfer of profits out of a country.c. Tax and tariff regulations.d. Restricted access to communication and transportationnetworks.
a. According to the OLI paradigm, foreign direct investment is explained by three conditions (ownership advantages, location advantages and internalization). Examine the factors that influence firms to locate subsidiaries close to markets. b. Managers of multinational enterprises are advised to take advantage of their home region institutions such as the European Union. Assume you are the manager of a multinational enterprise in Belgium. Why is the institutional framework created by the EU pivotal for business? c.
Which of the following statements are true about globaliza-tion methods? a. International licensing involves the creation of a new company that is owned by two or more firms from dif-ferent countries. b. Exporting involves contracts that allow a foreign com-pany to use a domestic company’s trademarks, patents, processes, or technology.c. Global sourcing involves the close coordination ofresearch and development, purchasing, marketing, andmanufacturing across national boundaries.d. A wholly owned international subsidiary is createdwhen a foreign government owns 100 percent of theequity in a U.S.-based firm.
Increased global interaction has been promoted by advanced technology in communication, ideas and culture, which largely encourages and facilitates international trading. Businesses go abroad in seeking better financial incentives, stronger networks, and markets of opportunities. But at the same time, the complexities in terms or risks involved in international operation are more than domestic firms. Respond to the following in a minimum of 175 words: Discuss how to manage cultural risks and other factors related to a foreign operation of a multinational business. Is cultural, business, or political risk more challenging to overcome than one of the others? Why or why not? How should American standards influence multinational businesses?
Due to their rapid expansion to foreign markets the process is sometimes referred to as the “McDonaldization” of new markets. Which market entry strategy is McDonald’s Corporation using in those countries where local governments do not allow 100% foreign funded enterprises? a.Franchising b.Partnerships with local (domestic) companies c.Mergers & acquisitions d.Local holdings e.Direct export
The form of entry strategy into international operations that offers the lowest level of control would be :- franchising. licensing. joint venture. exporting.
Businesspeople need to understand international culture and corporate practices to successfully transfer their business activities to foreign countries. Compare and contrast US culture and corporate practices with India’s and identify challenges as a result for a US based company to operate its activities in India. Identify at least three risks associated with doing transactions by the US based company operating in India and what can be done to mitigate such risks. Note that operations are in India but majority of the products are sold in US. Include tangible examples for better clarity. Include currency exchange risk among those mentioned above, and explain ways to mitigate this risk. Explain in detail.
Based on this case study, what issues with China-based suppliers require Numi’s managers touse influence and persuasion tactics? (b) How does Numi get suppliers to comply with its policies? Please refer to the case study attached below
Which of the following statements best differentiates multinational firms from domestic firms? a. Multinational firms have overseas sales offices. b. Multinationals engage in both importing and exporting. c. Multinational firms have one or more plant(s) in a foreign country. d. Multinational business people make use of worldwide sales, capital, and labor markets.
Which of the following is NOT a reason why companies move into international operations? a. To better serve their primary customers. b. To take advantage of lower production costs in regions where labor costs are relatively low. c. To increase their inventory levels. d. Because important raw materials are located abroad. e. To develop new markets for the firm's products.