Question : 41) McDonald’s success in franchising in global markets can be : 1353380

41) McDonald’s success in franchising in global markets can be attributed to several factors which do not include:

A) a well known global brand name.

B) a business system that can be easily replicated.

C) local market knowledge.

D) cross licensing.

E) granting franchisees leeway to tailor menu offerings to suit local tastes.

42) Honda has invested $550 million in building an assembly plant in Greensburg, Indiana; IKEA spent nearly $2 billion to open stores in Russia; and South Korea’s LG Electronics purchased a 58% stake in Zenith Electronics. All of these are examples of:

A) acquisition.

B) licensing.

C) franchising.

D) FDI.

E) exporting.

43) The disadvantages of joint venturing can include all of the following except:

A) Joint venture partners must share rewards as well as risks.

B) Joint ventures allow partners to achieve synergy.

C) Joint ventures can have the potential for conflict between partners.

D) A dynamic joint venture partner can evolve into a strong competitor.

E) A company incurs very significant costs by joint venturing.

44) The strategy to use joint ventures has several advantages which do not include:

A) risk sharing.

B) reduced financial risk.

C) reward sharing.

D) achieve synergy.

E) only way to enter a country or region.

45) Which of the following does not fit into the sequence of experiences Anheuser-Busch had in Japan?

A) Anheuser-Busch first entered Japan by means of a licensing agreement with Suntory, the smallest brewery in Japan.

B) Anheuser-Busch created a joint venture with Kirin Brewery, the market leader.

C) Anheuser-Busch dissolved the joint venture with Kirin Brewery.

D) Anheuser-Busch entered into a joint venture with Kirin Brewery.

E) Anheuser-Busch reverted to a licensing agreement with Kirin Brewery.

46) As a general rule, the Chinese government allows foreign companies to participate in its market only if those companies agree to establish operations with local Chinese enterprises. Which market entry mode would be the appropriate choice under these circumstances?

A) acquisition

B) licensing

C) joint venture

D) exporting

E) franchising

47) The president of a Mexican company recently remarked, “Business in Mexico is done on a consensus basis, very genteel and sometimes slow by U.S. standards.” A few months later, the Mexican company and its U.S. joint venture partner parted company. Judging by the president’s remark, one important reason for the “divorce” was:

A) failure of one partner to live up to the terms of the contract.

B) cultural differences.

C) the cancellation of NAFTA.

D) the U.S. government’s insistence on quick negotiations.

E) the language barrier.

48) Toyota learned many things from its partnership with GM, however American Managers involved in the venture complained that:

A) Toyota learned many things about U.S. supply system.

B) Toyota learned about U.S. transport system.

C) Toyota learned about managing American workers.

D) Toyota did not apply manufacturing expertise at GM plant.

E) Toyota applied expertise at its Camry plant.

49) GM executives are looking for a joint venture with AvtoVAZ, the largest carmaker in:

A) Germany.

B) Lithuania.

C) Russia.

D) Kazakhstan.

E) Turkey.

50) In a joint venture with Russian manufacturer AvtoVAZ, GM executives were planning to have a stripped-down reengineered car based on its Opel model. However, the market research revealed that a “Made-in-Russia” car would only be acceptable if:

A) it has a German name.

B) it sported a very low sticker price.

C) it has an American name.

D) it has a very high sticker price.

E) it has a Russian name.