MGT361_Chap1&2

Which of the following would be considered an international business transaction?

• recruiting employees internationally

• purchasing products in one country and assembling them in the same country

• borrowing money from a major bank to finance capital improvements

• shipping finished products from one country to another for retail sale

The Internet has helped small businesses compete in global markets because it ________.

• reduces entry costs

• allows them to establish a physical presence in each country

• avoids transactions involving foreign exchange

• eliminates price controls

Individuals should most likely study international business to ________.

• obtain bilingual business experience

• remain current on the latest business methods

• comply with graduate school certification requirements

• ensure that an employer has a global online presence

Which of the following has most likely triggered the increase of small businesses involved in international business?

• e-commerce

• economic recession

• foreign-made materials

• increased cultural literacy

Black and Decker produces tools at a plant in North Carolina and ships the tools to retailers in England. This is an example of which type of international business activity?

• merchandising

• Importing

• exporting

• trading

The international business activity called ________ occurs when capital is supplied by residents of one country to residents of another country.

• global direct investment

• portfolio financing

• state capitalism

• international investment

________ are investments made for the purpose of actively controlling property, assets, or companies located in host countries.

• Licensing investment

• Portfolio investment

• Foreign direct investment

• Indirect global investment

If a company is headquartered in Taiwan, then Taiwan is the company's ________.

• host country

• home country

• dominant country

• competitive country

________ are purchases of foreign financial assets for a purpose other than control.

• Foreign direct investments

• Global business investments

• Foreign portfolio investments

• Indirect investments

McDonald's has licensed its brand name, operational systems, and trademarks to individual restaurant owners in Europe. This is called international ________.

• leasing

• marketing

• diversifying

• franchising