Review Unit 10 - TACN3 (Kinh tế và kinh doanh quốc tế) FTU

UNIT 10 ### Multiple-Choice Questions 1. **What is an entry mode?** - A) A way to enter a building - B) A strategy to acquire raw materials - C) An institutional arrangement to get resources into a market - D) A method of marketing products locally 2. **Which of the following is NOT a category of entry modes?** - A) Exporting - B) Investment entry - C) Domestic trade - D) Contractual entry 3. **What is direct exporting?** - A) Selling products to intermediaries - B) Selling products directly to buyers in a target market - C) Importing goods for resale - D) Selling goods and services within the home country 4. **What is countertrade?** - A) A method of trading where goods are exchanged for money - B) Selling goods or services that are paid for with other goods or services - C) A type of direct exporting - D) Importing goods without financial transactions 5. **Which of the following is a type of indirect exporting intermediary?** - A) Direct sales representative - B) Export management company - C) Foreign customer - D) Domestic supplier 6. **What is licensing?** - A) Selling goods in a foreign market - B) Granting the right to use intangible property - C) Importing goods for resale - D) Acquiring raw materials from abroad 7. **What does a management contract involve?** - A) Providing products for resale - B) Supplying managerial expertise - C) Selling a franchise - D) Constructing a factory 8. **Which of the following is NOT an investment entry mode?** - A) Joint venture - B) Wholly owned subsidiary - C) Licensing - D) Strategic alliance 9. **What is a joint venture?** - A) A business owned by a single entity - B) A separate company created and jointly owned by two or more independent entities - C) A franchise agreement - D) A contract for supplying managerial expertise 10. **What is vertical integration?** - A) Extending control over additional stages of production - B) Outsourcing non-essential components - C) Acquiring raw materials locally - D) Establishing a wholly owned subsidiary 11. **Which of the following is an advantage of making rather than buying?** - A) Greater flexibility - B) Lower risk - C) Greater control over the production process - D) Reducing overall costs 12. **What is outsourcing?** - A) Making all components in-house - B) Buying a good or service from another company - C) Exporting goods to another country - D) Establishing a joint venture 13. **Which of the following is NOT a reason to buy rather than make?** - A) Lower risk - B) Greater control - C) Greater flexibility - D) Market power 14. **What is the main factor driving decisions about raw material acquisition?** - A) Price - B) Availability - C) Quantity and quality - D) Local infrastructure 15. **What is a turnkey project?** - A) A facility entirely owned and controlled by a single company - B) A project where one company designs, constructs, and tests a facility for a client - C) A project where two companies collaborate without forming a separate entity - D) A method of countertrade 16. **What is the primary advantage of a wholly owned subsidiary?** - A) Shared risk - B) Complete control over operations - C) Reduced financial commitment - D) Easier market entry 17. **Which of the following is a barrier to buying products from international suppliers?** - A) Lower flexibility - B) Import tariffs - C) Greater market power - D) Vertical integration 18. **What does the make-or-buy decision refer to?** - A) Deciding whether to export or import - B) Deciding whether to manufacture a product or purchase it from another company - C) Deciding between different market entry modes - D) Deciding on the best method of countertrade 19. **Which of the following is a characteristic of strategic alliances?** - A) Formation of a separate company - B) Cooperation between two or more entities without forming a separate company - C) Complete ownership by a single entity - D) Importing goods from another country 20. **Which entry mode involves minimal financial investment but significant managerial involvement?** - A) Wholly owned subsidiary - B) Licensing - C) Franchising - D) Exporting 21. **What is a nonexclusive license?** - A) A license that grants sole access to a market - B) A license that allows multiple companies to use a property - C) A license for manufacturing products in a foreign country - D) A license that prevents other companies from using a property 22. **What is the primary reason for companies to engage in countertrade?** - A) To simplify financial transactions - B) To avoid import tariffs - C) To sell goods or services that cannot be paid for with money - D) To gain greater control over production 23. **What is an export trading company?** - A) A company that purchases goods for resale in the domestic market - B) A firm that provides services to indirect exporters - C) A company that exports goods directly to foreign customers - D) A firm that manufactures products for export 24. **What is a cross-licensing agreement?** - A) An agreement to share manufacturing facilities - B) An agreement to swap intangible property between companies - C) A contract to manage another company's operations - D) A project to design and construct a facility 25. **What is the purpose of a management contract?** - A) To sell products in a foreign market - B) To supply managerial expertise to another company - C) To acquire raw materials from abroad - D) To establish a joint venture 26. **What is the main challenge in acquiring raw materials internationally?** - A) High cost - B) Government regulations - C) Ensuring consistent quality and quantity - D) Lack of local infrastructure 27. **Which of the following is NOT a type of countertrade?** - A) Barter - B) Counter-purchase - C) Joint venture - D) Buyback 28. **What is the advantage of outsourcing?** - A) Increased vertical integration - B) Reduced exposure to political risk - C) Greater control over the production process - D) Higher production costs 29. **What does market power in outsourcing refer to?** - A) The ability to control suppliers by becoming an important customer - B) The ability to reduce production costs - C) The power to dictate quality improvements - D) The ability to gain market share quickly 30. **What is the main reason for companies to form strategic alliances?** - A) To share ownership of a new company - B) To achieve strategic goals without forming a new company - C) To reduce operational costs - D) To avoid import tariffs ### Gap-Filling Questions 1. An entry mode is the institutional __________ by which a firm gets its products into a market. 2. There are three categories of entry modes: exporting, __________ entry, and investment entry. 3. Exporting is the act of sending goods and services from one nation to __________. 4. Direct exporting occurs when a company sells its products directly to __________ in a target market. 5. __________ exporting occurs when a company sells its products to intermediaries who then resell them to buyers in a target market.