Answer the following statements true (T) or false (F)
1. Deglobalization is a trend to move production back to the United States over fears about geopolitics or energy prices.
2. A tariff is a limitation on the numbers of products allowed into a country, imposed by its government to protect domestic industries.
3. One way to avoid a tariff is to create a subsidiary to produce the product in the foreign country imposing that tariff.
4. For international expansion, joint ventures have a lower level of risk than franchising.
1. TRUE
While some companies are locating their manufacturing outside the United States, a countertrend, called "deglobalization," is that some companies are moving production back home, because long supply chains can be easily affected by the whims of geopolitics and energy prices.
2. FALSE
Countries place tariffs (fees) on imported goods or impose import quotas, which are limitations on the numbers of products allowed in, for the purpose of protecting their own domestic industries.
3. TRUE
To avoid tariffs and quotas, a company might create a subsidiary to produce the product in the foreign country.
4. FALSE
Franchising has a lower level of risk and investment than joint ventures do.
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Which of the following is not normally a performance measure on a balanced scorecard?
a. financial. b. environmental. c. customer. d. learning and growth.
Convenience products include staples, impulse products, and emergency products.
Answer the following statement true (T) or false (F)
Which of the following statements is CORRECT?
A. The IRR method appeals to some managers because it gives an estimate of the rate of return on projects rather than a dollar amount, which the NPV method provides. B. The discounted payback method eliminates all of the problems associated with the payback method. C. When evaluating independent projects, the NPV and IRR methods often yield conflicting results regarding a project's acceptability. D. To find the MIRR, we discount the TV at the IRR. E. A project's NPV profile must intersect the X-axis at the project's WACC.
The name of a new business should be:
A. simple, memorable, and descriptive of the benefits. B. simple, memorable, and descriptive of the product. C. the family name of the founder and descriptive of the product. D. simple, memorable, and include the name of the founder.