Foundation of International Business (CA 2)

What are the different types of international business?

• Exporting, Importing, Licensing, Franchising, Foreign Direct Investment, Joint Ventures

• Selling, Buying, Renting, Borrowing

• Domestic Business, Local Business, National Business, Regional Business

• Manufacturing, Retailing, Wholesaling, Service Industry

Explain the concept of import and export in international business.

• The transportation of goods within a country

• The process of outsourcing production to other countries

• The buying and selling of goods and services between countries.

• The exchange of currency between different countries

How does international franchising work in the context of international business?

• The franchisor grants the rights to another company to use its business model, brand, and processes in a different country.

• The franchisor sells its business model to another company in the same country.

• The franchisor has no control over how the franchisee operates the business.

• The franchisor is not responsible for providing any support or training to the franchisee.

What are the key components of the basic structure of international business environment?

• The key components of the basic structure of international business environment include domestic, regional, and global factors.

• The key components of the basic structure of international business environment include political, economic, social, technological, environmental, and legal factors.

• The key components of the basic structure of international business environment include cultural, religious, and linguistic factors.

• The key components of the basic structure of international business environment include financial, marketing, and operational factors.

Discuss the role of government policies in shaping the international business environment.

• Government policies influence trade regulations, investment incentives, and diplomatic relations.

• Government policies only affect domestic business and not international business

• International business is solely influenced by market forces

• Government policies have no impact on international business

Explain the significance of global economic institutions in the international business environment.

• Global economic institutions are only concerned with domestic economic policies

• Global economic institutions only benefit developed countries

• Global economic institutions provide financial stability, promote trade and investment, and set standards for economic policies.

• Global economic institutions have no impact on international business

What are the different types of risks associated with international business?

• Political risk, economic risk, cultural risk, and legal risk

• Market risk, operational risk, supply chain risk, and human resource risk

• Currency risk, inflation risk, interest rate risk, and credit risk

• Financial risk, technological risk, environmental risk, and social risk

How does political instability impact international business operations?

• It has no impact on international business operations.

• It leads to increased stability for international business operations.

• It reduces the level of competition for international business operations.

• It creates uncertainty and risk for international business operations.

Discuss the importance of risk assessment in international business decision-making.

• It only focuses on short-term risks

• It is only necessary for small businesses

• It helps in identifying potential risks, evaluating their impact, and developing strategies to mitigate them.

• It has no impact on decision-making

What are the common trade barriers in international business?

• Tariffs, quotas, non-tariff barriers, and trade restrictions

• Subsidies

• Free trade agreements

• Tax incentives