Which of the following is most likely a problem for international franchisors?
A) Franchisees are unwilling to modify products for local needs.
B) Currency exchange rates reduce the profits of franchisees.
C) Franchisors cannot afford to send company executives to each franchise.
D) Franchisees use franchise knowledge to start a competing business.
Question 2
Which of the following is most likely an advantage of franchising to franchisees?
A) cost-effective market entry
B) reduce costs and responsibilities
C) increase brand and customer loyalty
D) all of the above
Question 3
Which of the following most likely makes it difficult to completely duplicate a food franchise in every global market?
A) different local ingredients
B) inconsistent training
C) unique trademarks
D) cultural issues
Question 4
The success of a franchise in a foreign market is most dependent on which of the following?
A) franchisor trademarks
B) strong local intellectual property rights
C) franchisee capabilities
D) franchisor involvement
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International Management: Managing Across Borders and Cultures
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International Business Management