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Multiple Choice Quiz
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1
Multi-country expansion is easiest when the day-to-day activities of the service are routine.
A)True
B)False
2
Because of the costs associated with importing customers, companies that adhere to this strategy normally must pay their employees below the industry average.
A)True
B)False
3
Often, service businesses are forced to expand globally in order to keep their customers that have already done so.
A)True
B)False
4
If a company expands into Spain and decides to remain open during the midday siesta when all other businesses are closed, it is using a 'beat the clock' strategy.
A)True
B)False
5
The single-mindedness of the franchiser and the franchisee normally leads to an amicable relationship between the two.
A)True
B)False
6
A diversified network is a term used to describe a business that performs multiple services at multiple locations.
A)True
B)False
7
The __________ strategy is not a generic international strategy?
A)diversified network
B)global
C)multi-domestic
D)transnational
8
Which of the following is not a benefit derived from purchasing a franchise?
A)Immediate national name recognition
B)Break-even point hit sooner
C)Unlimited freedom
D)Management training
9
Which of the following is not true of today's "borderless" world?
A)Competitors are often needed as partners.
B)Expansion is driven by companies' needs to increase sales to cover high variable costs.
C)Global expansion smoothes earnings through a geographic 'portfolio effect'.
D)Customers worldwide are aware of the best services available and expect to be able to purchase them.
10
What is the main reason that franchise contracts are so stringent?
A)Poorly operated facilities are less profitable than well-operated ones.
B)The actions of a single franchisee can hurt the entire chain.
C)A franchisee's overstating expenses will result in less revenue for the franchiser.
D)Most franchisees are 'mavericks' that want to do everything their own way.
11
Which of the following is not true of global expansion?
A)Differences in culture dictate that certain elements of a service be eliminated while other elements must be added.
B)Differences in language make employee training difficult.
C)Host governments may act in ways contradictory to the 'greater global good' in order to protect domestic businesses.
D)Smaller businesses have an easier time expanding globally than do large businesses.
12
Which of the following is not true of service offshoring?
A)Quality and coordination are often a problem.
B)Many countries have unemployed but highly educated citizens that can perform the tasks.
C)Focuses only on those aspects of a service that requires face-to-face interaction.
D)Home office employee morale may suffer.





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