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MGT361 Chapter 1: Overview of International Business

Total questions: 15

Worksheet time: 7mins

Name
Class
Date
1.

Business transactions between parties from more than one country are known as international business.

a)

True

b)

False

2.

International business is more complex than domestic business.

a)

True

b)

False

3.

It is important to study international business because you may work for a firm that is owned by a corporation that is headquartered in another country.

a)

True

b)

False

4.

Small businesses are usually not involved in international business given the cost restrictions.

a)

True

b)

False

5.

Individuals should most likely study international business to ________.

a)

comply with graduate school certification requirements

b)

ensure that an employer has a global online presence

c)

remain current on the latest business methods

d)

remain current on the latest communication method

6.

Capital supplied by residents of one country to residents of another is known as ________.

a)

international investments

b)

host-country financing

c)

international franchising

d)

domestic inversion financing

7.

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

a)

Exporting

b)

Importing

c)

Merchandising

d)

Transporting

8.

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

a)

visible trade

b)

invisible trade

c)

merchandising

d)

service franchising

9.

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

a)

exporting

b)

importing

c)

licensing

d)

franchising

10.

If a company is headquartered in Taiwan, then Taiwan is the company's ________.

a)

host country

b)

home country

c)

dominant country

d)

competitive country

11.

Ford Motor Company is based in Detroit, Michigan. It also has offices in Germany, England, and China. Which of the following is Ford's home country?

a)

Germany

b)

England

c)

China

d)

United States

12.

________ are purchases of foreign financial assets for a purpose other than control.

a)

Foreign direct investments

b)

Global business investments

c)

Foreign portfolio investments

d)

Indirect investments

13.

________ 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.

a)

Leasing

b)

Franchising

c)

Licensing

d)

Merchandising

14.

Walt Disney permits a German clothing manufacturer to market children's pajamas embroidered with Mickey Mouse in return for a percentage of company sales. This is an example of ________.

a)

franchising

b)

licensing

c)

leasing

d)

piracy

15.

Which of the following is a common activity of MNCs?

a)

training of international managers

b)

buying resources in various countries

c)

inventing goods in a variety of countries

d)

establishing foreign exchange rates