Exam 1 CHP 5

Question 1

Regulates and facilitates international trade between nations.

Answer 1

World Trade Organization (WTO)

Question 2

Was founded in 1945 to promote trade through financial cooperation and eliminate trade barriers in the process.

Answer 2

International Monetary Fund (IMF)

Question 3

Selling domestically produced products to buyers in other countries.

Answer 3

Exporting

Question 4

Intermediary in the global market that assumes all ownership risks and sells globally for its own account.

Answer 4

Buyer for Export

Question 5

An intermediary who plays the traditional broker’s role by bringing buyer and seller together,

Answer 5

Export broker

Question 6

The third type of intermediary is foreign sales agents/ distributors who live in the foreign country and perform the same functions as domestic manufacturers agents.

Answer 6

Export Agent

Question 7

Legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents trade secrets, or other proprietary knowledge.

Answer 7

Licensing

Question 8

Private label manufacturing by a foreign company.

Answer 8

Contract manufacturing

Question 9

When a domestic firm buys part of a foreign company to create a new entity.

Answer 9

Joint Venture

Question 10

Active ownership of a foreign company or of overseas manufacturing or marketing facilities.

Answer 10

Foreign Direct Investment