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Multiple Choice Quiz
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1
The firms that export through indirect exporting include all of the following except:
A)manufacturer's export agents.
B)export commission agents.
C)export merchants.
D)domestic firms.
2
By means of a licensing agreement,
A)an international firm receives permission from a foreign government to set up a subsidiary in that country.
B)one firm grants to another the right to use stipulated parts of its expertise.
C)a foreign company receives products made for it by another company.
D)one firm grants to another the right to use all of its expertise.
3
International firms employ contract manufacturing
A)as a means of entering a foreign market without investing in plant facilities.
B)when the parent firm wishes to siphon off some of the subsidiary's profits.
C)to obtain a distribution network familiar with its products.
D)as a means of direct foreign investment.
4
Foreign direct investment (FDI) includes all of the following except:
A)wholly owned subsidiaries.
B)joint venture.
C)franchising.
D)strategic alliances.
5
All of the following are characteristics of the Export Trading Company Act except:
A)that it permits businesses to join together to export goods and services without fear of violating antitrust laws.
B)that it permits banks to participate in export trading companies.
C)that its benefits are extended to all exporters, not just export trading companies.
D)that it does not allow the countertrade.





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