INTERNATIONAL FINANCE - OVERVIEW

What are International Finance?

• the trade of goods, services, technology, capital and/or knowledge across national borders

• The study of monetary interactions between two or more countries.

• Societies and countries have differing levels of "development" on an international scale.

What is the primary purpose of a multinational corporation (MNC)?

• to maximize profits by operating in multiple countries

• to promote cultural exchange between nations

• to provide humanitarian aid globally

• to establish trade agreements between countries

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

• Exporting

• Merchandising

• Importing

• Transporting

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

• exporting

• importing

• licensing

________ is a contractual arrangement in which a firm in one country allows the use of its intellectual property by a firm in a second country in return for a royalty payment.

• Leasing

• Franchising

• Licensing

• Merchandising

Which of the following is a common activity of MNCs?

• training of international managers

• inventing goods in a variety of countries

• buying resources in various countries

• establishing foreign exchange rates