International Business Concepts Assessment

The video discusses globalization's impact on business, defining international business and its significance. It outlines seven types of international business: imports/exports, licensing, franchising, outsourcing, joint ventures, multinational companies, and foreign direct investment. Each type is explained in detail. The video also highlights key factors to consider before starting international business operations, including geographical, social, legal, behavioral, and economic factors.

What is a key characteristic of globalization?

• Increase in local businesses

• Reduction in international trade

• Integration of economies

• Isolation of economies

Why is it important to study international business?

• It is only relevant to large companies

• It is a declining field

• It requires no specific knowledge

• It is a growing portion of total business

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

• Franchising

• Local Trading

• Licensing

• Imports and Exports

What is the simplest form of international business?

• Franchising

• Outsourcing

• Imports and Exports

• Licensing

How does licensing help in international business?

• By distributing products internationally

• By increasing local employment

• By allowing local production

• By reducing product quality

Which business model allows a company to use another company's brand and products?

• Joint Venture

• Licensing

• Franchising

• Outsourcing

What is a joint venture?

• A solo business operation

• A partnership between two local companies

• A collaboration between an international and a local company

• A merger of two multinational companies

Which factor is crucial when considering international business due to cultural differences?

• Economic forces

• Behavioral factors

• Social factors

• Geographical factors

Why might companies avoid expanding into politically unstable countries?

• Due to social harmony

• Due to high economic growth

• Due to favorable legal policies

• Due to political disturbances

What is the impact of economic forces on international business?

• They have no impact

• They directly affect profitability

• They only affect local businesses

• They are irrelevant to business operations