Chapter 1 review

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

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

• recruiting employees internationally

• borrowing money from a major bank to finance capital improvements

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

All of the following are benefits of international business except:

• expanded business opportunities
• increased sources of raw materials
• decreased competition
• decreased production costs

International business involves the buying and selling of products or services between countries.

• True
• False

Send (goods or services) to another country for sale.

• Embargo

• Export

• Import

• Foreign Direct Investment

Some Vietnamese fans take Air France to watch the Tour de France bicycle competition. Their flight tickets on Air France and travel expenses in France are:

• Service imports for France

• Merchandise imports for France

• Service exports for France

• Merchandise exports for France

Globalization refers to the shift toward a more ...........and ........... world economy.

Coca-Cola soft drinks, McDonald’s hamburgers, Starbucks coffee are prototypical examples of:

• The globalization of markets

• The globalization of production

 

All of the following are drivers of globalization except for:

• Liberalization of cross-border trade

• Decrease in international investment barriers

• Decrease in global competition

• Technological change

Merchandise exports and imports are sometimes called ........... exports and imports.

• Visible

• Invisible

................ occurs when a firm exports goods or services to consumers in another country.

• International investment

• International trade

• International recruitment

• International tourism