Question 1

When a company follows a global strategy, it customizes its strategic approach for every country it operates.

True

False

Question 2

A country imposes a limit on the import of textiles from foreign countries by specifying the quantity that can be imported. This is an example of:

Anti-dumping duty

Export quota

Customs duty

Import quota

Question 3

A U.S. company that sells phones and laptops plans to enter the Ethiopian market. It decides to establish a new company in Ethiopia for conducting its business. Which mode of entry is this?

Licensing

Subsidiary

Franchising

Strategic alliance

Question 4

Licensing is a mode of entry where a company gives the foreign company the rights to produce its products for a fee.

True

False

Question 5

One of the reasons a company might venture abroad is to achieve lower costs.

True

False

Question 6

In a common law system, judges have greater flexibility in interpreting the law.

True

False

Question 7

Which of the following is a key benefit of establishing a wholly owned subsidiary?

Complete control over operations

Lower risk due to limited investment

Short set-up time

No paperwork involved

Question 8

A joint venture is a type of strategic alliance in which two or more companies form a new company in which they have joint ownership and control.

True

False

Question 9

A global strategy may be appropriate when cost pressures on the company are greater than local responsiveness pressures.

True

False

Question 10

In which type of international strategy is coordination centralized at the company's headquarters?

Transnational strategy

Global strategy

Multidomestic strategy