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If a Firm Can Realize Location Economies by Moving Production

Question 48
Multiple Choice

If a firm can realize location economies by moving production elsewhere,it should avoid: A) exporting. B) turnkey contracts. C) licensing. D) wholly owned subsidiaries.

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Q 49
Which of the following is a distinct advantage of exporting? A) It avoids the threat of tariff barriers by the host-country government. B) Firms benefit from a local partner's knowledge of the host country's competitive conditions. C) It avoids the often substantial costs of establishing manufacturing operations in the host country. D) It is appropriate if lower cost locations for manufacturing the product can be found abroad.
Q 50
When an exporting firm finds that its local agent is also carrying competitors' products,the firm may switch to a _____ to handle local marketing,sales,and service. A) wholly owned subsidiary B) franchising arrangement C) turnkey operation D) licensing agreement
Q 51
In _____,the contractor agrees to handle every detail of the project for a foreign client,including the training of operating personnel. A) exporting B) licensing C) franchising D) turnkey projects
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