Exam 1: Introduction to International Business

A cooperative business arrangement between two or more companies may be a:

Foreign investment in the U.S.is often called:

Indirect exporting but not direct exporting involves sales through sales agents or to foreign distributors.

A host country refers to the country under whose laws the investing corporation was created or is headquartered.

In the case In re Union Carbide Corporation Gas Plant Disaster at Bhopal,the U.S.court ruled:

A transfer of technology is governed by an international licensing agreement.

Weigh the relative benefits and risks of a medium-sized American firm licensing technology to a developed nation? A developing nation?

Customs brokers are government inspection officials who regulate the shipment of goods in and out of the country.

Devise "managerial guidelines" or "Troubleshooter's Guide" to which a U.S.franchise representative should refer in supervising or consulting with a new,foreign franchisee.

Currency exchange risk cannot be managed because the fluctuations of currencies cannot be predicted.

Exporting is the shipment of goods or rendering of services to a foreign buyer located in a foreign country.

Export management companies assist indirect exporters by serving as:

Foreign investment refers to the ownership and active control of ongoing business concerns.

An independent firm that purchases goods for resale directly from the exporter,assumes credit risks in the local market,and provides product service and support is known as:

How do you feel doing business in the Middle East would differ from doing business elsewhere? What special factors (e.g.religious differences,cultural variables,Arab-Israeli relations)bear on your answer?

Because they tend to be more insidious,nontariff barriers are generally a greater barrier to trade than are tariff barriers.

The premise that suggests nations should concentrate their efforts on producing those goods that they can make most efficiently with minimal effort and waste is called comparative advantage.

Which of the following does not generally characterize foreign distributors?

The three forms of international business are exporting,importing,and licensing.

Identify a domestic franchise.Craft a franchising agreement that addresses standards/quality or service (in the manner of McDonald's).