Question

Firms that operate internationally are able to do all of the following EXCEPT:

A.

realize location economies.

B.

benefit from producing more standardized products and services.

C.

realize greater cost economies from experience effects.

D.

earn a greater return by leveraging any valuable skills developed in foreign operations and transferring them to other entities.

1 points   

QUESTION 39

All of the following are disadvantages of exporting EXCEPT?

A.

Itmay help a firm achieve experience curve economies

B.

High transportation costs can make exporting uneconomical

C.

Tariff barriers can make exporting uneconomical

D.

Exporting from a firm's home bases may not be appropriate if there are lower-cost locations for manufacturing the product abroad

1 points   

QUESTION 40

Which of the following is NOT a support activity in the value chain?

A.

Company infrastructure

B.

Logistics

C.

Production

D.

Human resources

1 points   

QUESTION 41

Which type of agreement is believed to reduce the risks associated with licensing technological know-how?

A.

Franchise agreement

B.

Service-licensing agreement

C.

Lateral agreement

D.

Cross-licensing agreement

Answer 1

Answer 38. The correct option is B. Firms that operate internationally generally do not produce standardised products and services rather they produce according to the different demand of the respective nations this is because demand of different nations cannot be fulfilled by producing standardised products.

Answer 39. Option A is correct. Experience curv is derived by firms experience gained over the years and helps reducing the per unit cost and reaching economies of scale. Thus, a firm achieving learning curve economies is an advantage.

Answer 40. Option A is the correct option. Company infrastructure jas nothing to add to the value of the product and doesn’t affect the product’s value. Human reaources play a vital role in the after sale services and production helps in producing the right quality goods and the last but not the least the logistics help in transporting te goods.

Answer 41. Option A is the correct option. Giving a license pf franchise to another person ensures some income in the dorm of royalty and gives the other person a chance to use the patented technology.