International Business Quiz-1

Which one of the following modes of entry brings the firm closer to international markets?

• Licensing

• Franchising

• Contract manufacturing

• Joint venture

When two or more firms come together to create a new business entity that is legally separate and distinct from its parents, it is known as ______.

• Contract manufacturing

• Franchising

• Joint ventures

• Licensing

In which of the following modes of entry does the domestic manufacturer give the right to use intellectual property such as patent and trademark to a manufacturer in a foreign country for a fee?

• Licensing

• Contract manufacturing

• Joint venture

• None of the above

______is the payment method most often used in International Trade which offers the exporter the best assurance of being paid for the products sold internationally.

• Bill of lading

• Letter of credit

• Open account

• Drafts

Which one of the following modes of entry permits the greatest degree of control over overseas operations?

• Licensing/franchising

• Wholly owned subsidiary

• Contract manufacturing

• Joint venture

Outsourcing a part of or entire production and concentrating on marketing operations in international business is known as _____.

• Licensing

• Franchising

• Contract manufacturing

• Joint venture

"The goods were not loaded on the ship as they did not get the customs clearance due to lack of one of the main documents. ―Identify the document which was required among the following:-

• Bill of clearance

• Custom bill

• Shipping bill

• Bill of exchange

Full form of WTO is:

• Work Trade Organisation

• World Transfer Organisation

• World Trade Organisation

• Wonder Trade Organisation

What is contract manufacturing?

• A type of outsourcing where a company hires another company to manufacture its products

• A type of joint venture where two companies share the costs and profits of manufacturing a product

• A type of licensing agreement where a company grants another company the right to manufacture its product

• All of the above

What are some of the advantages of contract manufacturing?

• Lower production costs

• Access to specialized expertise and technology

• Increased flexibility and scalability

• All of the above