International Trade and Business Quiz

What is the primary focus of international business?

• Focusing on local market needs

• Conducting transactions within a single country

• Exchanging goods and services across national borders

• Avoiding international markets

Which of the following is NOT a type of international business?

• Foreign Direct Investment

• Export-Import trade

• Licensing

• Local retailing

What is franchising?

• A type of foreign direct investment

• A method of exporting goods

• A way to use another person's business philosophy

• A form of local business expansion

Which characteristic is NOT ideal for a business to be franchised?

• Unique concept

• High operational complexity

• Broad geographic appeal

• Good track record of profitability

What does FDI stand for?

• Federal Direct Investment

• Foreign Domestic Investment

• Foreign Development Investment

• Foreign Direct Investment

Which organization is responsible for policing the world trading system?

• World Health Organization

• International Monetary Fund

• World Trade Organization

• United Nations

What is the main task of the IMF?

• Provide educational resources

• Regulate international trade

• Maintain order in the international monetary system

• Promote global health

What is the primary goal of globalization?

• To increase trade barriers

• To integrate and interconnect world economies

• To isolate national economies

• To focus on local markets

Which of the following is a disadvantage of globalization?

• Exploitation of human resources

• Cultural exchange

• Free flow of capital

• Increase in employment

What is the main advantage of the comparative cost theory?

• Focuses on domestic market needs

• Discourages international trade

• Promotes specialization and efficient resource allocation

• Encourages countries to produce all goods