10. In franchising, the franchisee and the franchisor are
very closely linked and have better working
relationships
The franchisee gets to retain the rights to the
franchisor’s logo and trademark
in franchising ,they are usually provided some level
of training and support
Also, they get to leverage some amount of
territorial exclusivity in addition to control over the
products and services offered.
11. The relationship between a licensee and the parent
company is not as tight-knit as a Licensee franchisor
relationship
a licensee does not hold the rights to the trademark and
logo of the parent company’s brand
Also, the licensee is expected to create its own niche
and identity in the market.
Another key difference is in the fact that licensees do not
get to have territorial rights from the parent company
13. An agreement in which a
contractor designs,
constructs, and manages
a project until it is ready to
be handed over to the
client and operation can
begin immediately.
15. * Turnkey projects – improvements or build
infrastructures. not involved in the company’s
management
* Management service contract – it is involved
in the company’s management. using the
infrastructure or managing the business idea.
17. • They are collaborative arrangements that a company
makes with competitors, suppliers, customers,
distributors, or firms in the same or different industries.
• They are also formed to obtain technology, minimize
environmental risks, or gain key human and material
resources.
18. • Companies cooperate on a mutual need
and share risks on order to achieve a
common goal.
• Globalization
• Risk sharing
• Innovation and learning
21. • Strategic alliances are made to make a stronger
presence in the market, to have diversification among
countries and to eliminate the competitive differences
among the othercompanies.
• Joint ventures is a company formed by two companies,
create a new market or satisfied an existing one; create
new products
22.
23. The transnationality of a company is the degree to
which the company is linked and is participating in
different countries.
True orfalse?True orfalse?
24. You’re worried because you’re the “Cam e l” export manager
and you just have one international market with one
product, but in a future, you want to get into new markets.
What type of organizational structure has been the
company using?
a. Pre-international
b. International
c. Global
d. Multidimensional
e. any of the above
25. The company has penetrated some new markets in various regions of the
world at the same time. The company is working in different markets that are
very dissimilar and some of those countries have both, high tariffs and quotas
because their governments are encouraging local production. Therefore
“Camel” opened production facilities in those countries. The subsidiaries are
quite polycentric and decentralized that´s why there is a clear division
between domestic and international operations.
8. According to “Camel” objective, which is the most appropriate type of
control for it?
a. Output and behavior
b. Input
c. Output and input
d. Behavior
e. Output
26. Bikes Mountain has observed that the company has significantly
decreased the demand for its product last year. This was caused
by many incomplete orders and uncountable unpleasant
customers. The president of the company met with their
managers in which they discussed the problems that have been
occurring lately and made a decision:
1. Modernizing and increasing the number of machines
2. Remodeling the infrastructure.
For those reasons, the company hired a foreign company
which will be responsible for the adequacy of the existing
infrastructure and for the new machines installation. The
agreement is for six months and the hired company is
responsible for bringing the equipment and people required for
carrying out the project without becoming involved in
administrative activities of the company.
27. a. JOINT VENTURES
b. COUNTERTRADE
c. EXPORTING
d. STRATEGIC ALLIANCES
e. NONE OF THE ABOVE
f. ALL OF THE ABOVE
28. If the manager is considering supervising the company is
on track, to analyze whether the company is getting close
to achieve the objectives. What step of the managerial
process does he need to apply?
a. Comparing performance to plan
b. Setting standards
c. Correcting deviations
d. Behavior Control
e. None of the above
29. Recently, a franchisee ended the agreement with my
company. You don’t trust anymore in another person to
transfer your business model. A similar company than yours
showed certain interest in having its business model in that
location. Your jealous because the company’s going to take
advantage of your infrastructure and it’s going to be difficult
to have your business there again, but you offer a different
proposal: managing your business model while you
emphasis in other business due to you are not having a
good performance in it. And when you get more experience,
and when the contract is finished, you’ll manage the
business again.
31. Looking for new foreign entry modes, you have discovered
that Belgium is a good foreign market for you. Determining
the entry mode has been very difficult due to the multiple
competitors there. Despite that, you want to try to getting
there using an intermediary who knows everything about the
market. You’re going to sacrifice some profit but it is going to
be useful while you penetrate by your own the market.
32. Which is the best foreign entry
mode for the company?
____________________________
_
33. Fortunately, Passio n Fruit is achieving the goals as it was expecting.
Now, there’s a new market for Passio n fruit. The problem is that the
company doesn’t know anything about the macro environment
factors of the country. Taking into account this situation, you gave
an excellent idea to the Company executive board: As Passio n Fruit
has enough money to invest, there are some companies there
which they could be potentially attractive for the company due to
those local companies have all the knowledge of the market,
channel of distributions, market segmentation, among others. So
with this option, Passio n Fruit could enter in the market avoiding
spending money in marketing research.
The FEMoption you are trying to explain to the Board is:
a. Greenfield
b. Acquisition
c. Licensing
d. None of the above
