A U.S. firm plans to shift from exporting to production in China to serve the Chinese market. Which of the following statements would best explain this decision?
A) China's currency is appreciating relative to the U.S. dollar.
B) The firm is nearing capacity utilization in its U.S. plant.
C) The company need not alter its products for the Chinese market.
D) Transportation costs have become low relative to production costs.
Question 2
International collaborative ventures are best characterized by which of the following?
A) pooling of resources from firms of one nation to enter a foreign market
B) agreement by firms to share resources and technology across borders
C) formation of cross-border partnerships to enter foreign markets
D) establishment of a physical presence in a foreign market
Question 3
One of the key advantages to an equity joint venture is that minority ownership provides some equality when it comes to control over operations.
Indicate whether the statement is true or false
Question 4
IKEA met with initial success in Japan by its willingness to suit local preferences and sell higher-quality furnishings than it did in its other markets.
Indicate whether the statement is true or false
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