BUS1203 Chapter 1

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

Trade between nations can be traced back as far as ________.

• 2000 BC

• 500 BC

• 1200

• 1500

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

• obtain bilingual business experience

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

• Decline in global trade agreements.
• Increased government regulations.
• Rise of local market competition.
• Advancements in technology.

International business originally consisted of ________.

• international trade

• contract manufacturing

• investment in foreign stocks
• FDI

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

• merchandising
• service franchising

• invisible trade

• visible trade

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

• international investment

• global direct investment

• portfolio financing

• state capitalism

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

• Licensing investments

• Portfolio investments

• Foreign direct investments

• Indirect global investments

Which term refers to the location of a parent company's headquarters?

• host country

• home country

• third country

• local country

The ________ is where a company operates but is not headquartered.

• host country

• home country

• parent country

• third party country