QUESTION 1 In some situations exporting may not be possible because of trade restrictions. True False

QUESTION 2 It is usually more cost-effective to export bulky goods than to manufacture them in markets where they are consumed. True False

QUESTION 3 A company will prefer direct investment in situations where it can handle the operations itself at less cost than by contracting with another company. True False

QUESTION 4 Two reasons for entering a country by acquisition are that it avoids start-up problems and does not add capacity to the market. True False

QUESTION 5 A reason for building a new facility in a country is to avoid problems of existing facilities. True False

QUESTION 6 Licensing is used widely in the soft drink and fast food industries. True False

QUESTION 7 A specific reason for international collaboration is to avoid exposure in risky True False

QUESTION 8 A general reason for collaboration is to spread and reduce costs. True False

QUESTION 9 A common problem with collaborative arrangements is a difference in objectives. True False

QUESTION 10 In a management contract a company uses its expertise to build a plant and turn it over to owners to operate. True False