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.	Which type of business should be grown through diversification? A. Those whose main attraction is site specific, such as an outstanding view. B. Those that have large, fixed facilities C. Those that rely on the superior skills of few individuals D. All of the above

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. Much of the 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 becoming 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 themselves. D. Smaller businesses have an easier time expanding globally than do large businesses.

12.

Which of the following is not true of the unbundling approach to global expansion? A. Heavy investments in capital and information processing equipment may be necessary. B. Many countries have unemployed but highly educated citizens that can perform the needed quantitative tasks. C. Unbundling focuses only on those aspects of a service that requires face-to-face interaction. D. Information technology has enabled companies to separate the informational portion of the service from the physical portion.

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