Question

1. You can adjust gross national income per capita by purchasing power to account for differences in the ________________.

a. Geographical area

b. Cost of living

c. Factor endowments

d. Labor productivity

e. Population density

2. What is an advantage for a firm who chooses exporting as a mode of entry into foreign markets?

a. Shares the development costs and risks with its host partner

b. Has access to local partner's knowledge

c. Able to avoid the cost of establishing manufacturing operations in the host country

d. Has the ability to engage in global strategic coordination

e. Able to earn returns from process technology skills in countries where foreign direct investment is restricted

3. Which of the following is a disadvantage of franchising?

a. Franchising leads to undesirable results for service firms.

b. The franchiser has no long-term interests in the foreign country.

c. It forces a franchiser to take out profits from one country to support competitive attacks in another.

d. It is difficult to maintain quality control across foreign franchisees that are distant from the franchiser.

e. The franchiser has to bear development costs and risks associated with foreign expansion.

Answer 1

Answer- 1. You can adjust gross national income per capita by purchasing power to account for differences in the - b. Cost of living.

Answer 2.What is an advantage for a firm who chooses exporting as a mode of entry into foreign markets?

-c.Able to avoid the cost of establishing manufacturing operations in the host country

Answer 3.Which of the following is a disadvantage of franchising?

d.it is difficult to maintain quality control across foreign franchisees that are distant from the franchiser.

explanation- in any franchise agreement when there is A geographical separation between franchisor and franchisee , it can be difficult to control the activities of franchisee and ensure that their activities are up to standard.