International Business

Topics in this chapter

• International Business Foundations
• International Entry Modes
• Export Procedure and Documents
• Import Procedure and Documents
• International Payments and Foreign Exchange
• Trade Barriers and WTO Governance

Cheat sheet

Practice questions

1. Question 1Q-AE8D18

   Which feature most clearly distinguishes international business from domestic business?

   1. A.It involves transactions only within the political boundaries of one country.
   2. B.It involves business transactions across the political boundaries of two or more countries.
   3. C.It is carried out only by government-owned enterprises.
   4. D.It always requires the physical movement of goods.
   See the answer and solution
2. Question 2Q-263E58

   An Indian company permits a foreign company to use its patent and technology in return for a fee, without making a direct investment in the foreign country. Which mode of international business is this?

   1. A.Licensing
   2. B.Wholly owned subsidiary
   3. C.Contract manufacturing
   4. D.Joint venture
   See the answer and solution
3. Question 3Q-30D6C5

   A company wants complete ownership and control over its foreign operations and is prepared to commit substantial capital while accepting high business risk. Which mode of international business best suits this objective?

   1. A.Exporting
   2. B.Licensing
   3. C.Wholly owned subsidiary
   4. D.Franchising
   See the answer and solution
4. Question 4Q-E711DB

   State any two benefits of international business to a country and briefly explain each.

   See the answer and solution
5. Question 5Q-2CE5EC

   An Indian business purchases specialised machinery from a company located in Japan. This transaction is an example of:

   1. A.Export trade
   2. B.Import trade
   3. C.Entrepot trade
   4. D.Domestic trade
   See the answer and solution