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66) Which of the following makes it difficult to completely duplicate a food franchise in every global market?A) different local ingredientsB) differences in languageC) low bargaining powerD) need to invest substantial capitalAnswer:ADiff:2: ModerateSkill:ApplicationObjective:15-5: Explain the advantages and disadvantages of franchisingAACSB:Analytical Thinking67) Host-country governments often encourage franchising because most of the money generated by the franchise remains inthe local economy.Answer:TRUEDiff:2: ModerateSkill:ConceptObjective:15-5: Explain the advantages and disadvantages of franchisingAACSB:Analytical Thinking68) One of the advantages for the franchisor is that is it easier to maintain control over the franchisee.Answer:FALSEDiff:2: ModerateSkill:ConceptObjective:15-5: Explain the advantages and disadvantages of franchisingAACSB:Analytical Thinking69) Key challenges faced by the franchisee is the decreased likelihood of operating an independent business.Answer:FALSEDiff:2: ModerateSkill:ConceptObjective:15-5: Explain the advantages and disadvantages of franchisingAACSB:Analytical Thinking70) Licensing and franchising are complex undertakings and require skillful research, planning, and execution.Answer:TRUEDiff:1: EasySkill:ConceptObjective:15-5: Explain the advantages and disadvantages of franchisingAACSB:Analytical Thinking71) ________ is an arrangement in which the focal firm or a consortium of firms plans, finances, organizes, manages, andimplements all phases of a project abroad and then hands it over to a foreign customer after training local workers.A) Home-replication strategyB) ExportingC) Turnkey contractingD) Equity-based collaborative ventureAnswer:CDiff:1: EasySkill:ConceptObjective:15-6: Understand other contractual entry strategiesAACSB:Analytical Thinking
72) ________ is an arrangement in which a contractor supplies managerial know-how to operate a hotel, hospital, airport, orother facility in exchange for compensation.A) Build-operate-transferB) Management contractC) LeasingD) ExportingAnswer:BDiff:1: EasySkill:ConceptObjective:15-6: Understand other contractual entry strategiesAACSB:Analytical Thinking73) Which of the following statements is true of leasing?A) It is an arrangement in which a contractor supplies managerial know-how to operate a hotel, hospital, airport, or otherfacility in exchange for compensation.B) The lessor transfers ownership of the property in exchange for a lump-sum payment.C) It is a high-risk and high-cost method of entering a foreign market.D) A major advantage for the focal firm is the ability to gain quick access to target markets, while putting assets to use inearning profits.Answer:DDiff:1: EasySkill:ConceptObjective:15-6: Understand other contractual entry strategiesAACSB:Analytical Thinking74) Leasing is especially beneficial to ________.

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Term
Fall
Professor
ValerieRosenblatt
Tags
Economics, International Trade, The American, The Land, World Trade Organization, AACSB

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