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INTERNATIONAL FINANCE - OVERVIEW

Total questions: 6

Worksheet time: 3mins

Name
Class
Date
1.

What are International Finance?

a)

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

b)

The study of monetary interactions between two or more countries.

c)

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

2.

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

a)

to maximize profits by operating in multiple countries

b)

to promote cultural exchange between nations

c)

to provide humanitarian aid globally

d)

to establish trade agreements between countries

3.

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

a)

Exporting

b)

Merchandising

c)

Importing

d)

Transporting

4.

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

a)

exporting

b)

importing

c)

licensing

5.

________ 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

6.

Which of the following is a common activity of MNCs?

a)

training of international managers

b)

inventing goods in a variety of countries

c)

buying resources in various countries

d)

establishing foreign exchange rates