Methods of Carrying on International Business

Which of the following is NOT a primary method for introducing goods to a foreign market?

• Bartering

• Franchising

• Direct foreign investment

• Direct sales

What is a common challenge associated with direct sales to foreign customers?

• Complex tax regulations

• Limited product variety

• Lack of brand recognition

• High shipping costs

Which payment method is typically used in direct sales to foreign markets?

• Cash on delivery

• Third-party payment facilitators

• Cryptocurrency

• Bank transfers

How does using a distributor or wholesaler benefit international sales?

• Limits market reach

• Reduces payment transactions

• Increases shipping costs

• Decreases product quality

What is the purpose of a letter of credit in international trade?

• To reduce shipping times

• To certify payments between banks

• To provide insurance for goods

• To increase product demand

What is a key advantage of franchising a business internationally?

• Direct control over operations

• Brand recognition and operational model

• Reduced legal barriers

• Lower initial investment

Which method involves establishing a business entity in a foreign country?

• Bartering

• Direct foreign investment

• Direct sales

• Licensing