MGT361 Chapter 1: Overview of International Business

Business transactions between parties from more than one country are known as international business.

• True

• False

International business is more complex than domestic business.

• True

• False

It is important to study international business because you may work for a firm that is owned by a corporation that is headquartered in another country.

• True

• False

Small businesses are usually not involved in international business given the cost restrictions.

• True

• False

Individuals should most likely study international business to ________.

• comply with graduate school certification requirements

• ensure that an employer has a global online presence

• remain current on the latest business methods

• remain current on the latest communication method

Capital supplied by residents of one country to residents of another is known as ________.

• international investments

• host-country financing

• international franchising

• domestic inversion financing

________ is the buying of products made in other countries for use or resale in one's own country.

• Exporting

• Importing

• Merchandising

• Transporting

The British term for the trading of tangible goods is ________.

• visible trade

• invisible trade

• merchandising

• service franchising

Boeing, an American firm, sells commercial aircraft to Lufthansa in Germany. This is an example of ________.

• exporting

• importing

• licensing

• franchising

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

• host country

• home country

• dominant country

• competitive country