Exam 1: An Overview of International Business

International business differs from domestic business in several ways. Identify at least three of these differences and describe their implications for companies.

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?

The BRIC countries include Brazil, Russia, India, and China.

Any organization that engages in cross-border commercial transactions with individuals, private firms, and/or public sector organizations is a(n) ________.

Licensing usually involves permission to use which of the following?

Mexico and Poland are examples of ________.

________ 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.

Siemens is headquartered in Germany but maintains operations in the United States. The United States is the ________ country.

Which of the following is a common activity of MNCs?

Compared to Thailand, the United Kingdom has a ________ level of exports of goods and services as a percentage of GDP.

Regional accords increase trade barriers among country members.

Just-in-time systems are used by firms to ________.

A well-developed web-site can draw the business of consumers throughout the world without the need to establish a physical presence in each country.

McDonald's has licensed its brand name, operational systems, and trademarks to individual restaurant owners in Europe. This is called international ________.

If a Dutch pension fund purchases 1,000 shares of Sony's stock, the Dutch company has most likely ________.

Which of the following is a primary source of revenue for the IOC during the Olympics?

The international business activity called ________ occurs when capital is supplied by residents of one country to residents of another country.

Which of the following is a likely reason that firms globalize?

During the Cold War, which term was used when referring to the Soviet Union and its allied Communist states?

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