ES Examination

Discuss one of the opportunities franchisors face when entering emerging economies.

• Access to new and diverse markets is an opportunity franchisors face when entering emerging economies.

• Increased risk of political instability is an opportunity franchisors face when entering emerging economies.

• Limited access to local resources is an opportunity franchisors face when entering emerging economies.

• Higher operational costs are an opportunity franchisors face when entering emerging economies.

What framework is suggested for analyzing a foreign market opportunity in the case study?

• PEST analysis framework

• SWOT matrix

• Porter's Five Forces

• Ansoff Matrix

Which company is highlighted as the world’s largest franchisor in the case study?

• McDonald's

• Burger King

• Subway

• KFC

Franchising, as an organizational structure, arises from a contractual agreement between the Franchisor (Parent Company) and the ________ (Company or Individual granted a license to use the Parent Company’s intellectual property).

• Franchisee

• Shareholder

• Supplier

• Distributor

The growth of franchising in emerging markets has been remarkable since the 1980s, exemplified by the surge in franchisors in Brazil and the substantial international sales of top U.S. food chains.

• True

• False

Which of the following is NOT one of the three structures under which McDonald’s operates its franchised restaurants?

• A) Conventional franchise

• B) Developmental license

• C) Affiliate

• D) Joint venture

According to the passage, what was a key factor that influenced McDonald's decision to enter Moldova?

• The size of the Moldovan market

• The country's transition to a market economy

• The presence of other fast-food chains

• The popularity of Western brands

Fill in the blank: The dissolution of Communism in 1989 ushered in a new era of rapid-growth countries in Central and Eastern Europe known as ________ economies.

• transition

• traditional

• command

• mixed

Moldova's public administration after independence was characterized by a high level of transparency and efficiency.

• True

• False

In 1997, which law did Moldova pass to address franchising, and what were its key provisions?

• Law on Franchising, which regulated franchise agreements, rights and obligations of parties, and registration requirements.

• Law on Commercial Enterprises, which focused on company formation and management.

• Law on Foreign Investments, which promoted foreign direct investment in Moldova.

• Law on Trade, which regulated import and export activities.