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Module 1 > Introduction to International Business > Flashcards

Introduction to International Business Flashcards

1
Q

Forms of International Business

A
  • Trade
  • Licensing
  • Foreign Direct Investment
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2
Q

Is the import or export of goods and services across
national borders, usually as part of an exchange.

A

Trade

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3
Q

Activities of Trading

A
  • Exporting
  • Importing
  • Trade in Services
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4
Q

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

A

Exporting

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5
Q

is the entering of goods into the customs
territory of a country or the receipt of services from a
foreign provider.

A

Importing

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6
Q

refers to the providing of services
to a customer or the operation of service companies in a
foreign country.

A

Trade in Services

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7
Q

Types of Exporting

A
  • Direct Exporting
  • Foreign Sales Representative
  • Foreign Distributors
  • Indirect Exporting
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8
Q

refers to a type of exporting in
which the exporter, often a manufacturer, assumes
responsibility for most of the export function, including
marketing, export licensing, shipping and collecting
payment.

A

Direct Exporting

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9
Q

firm use specialized intermediaries
that can take on many of the export functions– marketing,
sales finance, and shipping.

A

Indirect Exporting

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10
Q

are independent sales agents who solicit orders on behalf of their principals and receive compensation on a commission basis.

A

Foreign Sales Representative

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11
Q

are independent firms, usually
located in the country or region to which a firm is
exporting , that purchase and take delivery of goods for
resale to their customers.

A

Foreign Distributors

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12
Q

Types of Intermediaries

A
  • International Trading Companies
  • Export Management Companies
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13
Q

these are firms that
specialize in all aspects of import or export transactions
by either buying goods on their own accounts for resale
or by acting as middlemen to bring other buyers an sellers
together

A

International Trading Companies

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14
Q

these are independent firms that assume a range of export-related responsibilities for manufacturers, producers, or other
exporters.

A

Export Management Companies

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15
Q

One of the most important legal documents used in
import/export transactions.

A

Certificate of Origin

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16
Q

is a legal right which result from the
intellectual activity in the industrial, scientific, literary, and artistic
fields.
* Common forms are Patents, trademarks, copyrights, and trade
secrets.
* Thus, IP owner has the right to use, reproduce, distribute and profit
from its property to license its use or distribution for others. And to
protect it from unauthorized infringement.

A

Intellectual Property

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17
Q

Intellectual Property is a valuable asset that can be transferred
by the owner or holder to licensee through a grant of rights in
that property called a license.

A

International Licensing Agreements

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18
Q

is a valuable asset that can be transferred
by the owner or holder to licensee through a grant of rights in
that property called a license.

A

Intellectual Property

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19
Q

are contracts by which the holder of
intellectual property will grant certain rights (the license) in
that property to another party under specified conditions and a
for a specified time, in return for consideration, such as a fee
or royalty as a part of a larger business arrangement.

A

Licensing Agreements

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20
Q

Specialized agency of the United Nations. Ideally, it
administers an arbitration center to resolve IP disputes
between private parties, such as individual inventors,
corporation, and universities (including patent, trademark,
industrial design, and domain name).

A

World Intellectual Property Organization (WIPO)

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21
Q

refers to the violation of the IP rights of
another, and often occurs in the unauthorized use,
distribution, or appropriation of those rights. It is often
referred to as piracy or counterfeiting.

A

Infringement

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22
Q

it is the process of sharing scientific information, technology,
and manufacturing know-how between firms, universities, or
other institutions.

A

Transfer of Technology

23
Q

Franchising is a business arrangement that uses an agreement
to license, control, and protect the use of franchisor’s patents,
trademarks, copyrights or business-know-how, combined with
a proven plan of business operation in return for royalties,
fees, or commissions.

A

International Franchising

24
Q

is a business arrangement that uses an agreement
to license, control, and protect the use of franchisor’s patents,
trademarks, copyrights or business-know-how, combined with
a proven plan of business operation in return for royalties,
fees, or commissions.

A

Franchising

25
Q

Some Legal Aspects of Franchising

A
  • Regulation of Federal Trade Commission
  • Enacted Franchise Disclosure Laws
  • Restrictions on the amount of money the franchisor can remove
    from the country and others might have restrictions on importing
    supplies.
26
Q

Refers to the ownership and operation of effective control of the
productive assets of an ongoing business by an individual or
corporate investor who is a residential or national of another
country.

A

Foreign Direct Investment

27
Q

Forms of Investment

A
  • Foreign Branch
  • Foreign Subsidiary
  • Joint Venture
  • Local Participation
28
Q

a business presence by the investor in the host
country. Host country refers to that country under whose laws the
investing corporation was created or

A

Foreign Branch

29
Q

it is a foreign company organized under the
laws of a foreign host country but owned and controlled by the
parent corporation in the home country.

A

Foreign Subsidiary

30
Q

is s cooperative business arrangement between
two or more companies for profit. It may take the form of a
partnership or a corporation.

A

Joint Venture

31
Q

it means that the share of the business is
owned by nationals of the host country.

A

Local Participation

32
Q

is often used in the United
Nations system, reflecting that the corporation’s operations and
interests transcend national boundaries.

A

Transnational Corporations

33
Q

are firms that have significant
foreign direct investment assets or that derive a significant
position of their revenues from more than one country.

A

Multinational Corporations

34
Q
  • have high per capita income, have a high standard of living,
    and are in the later changes of industrialization.
  • characterized by advanced technology, modern production,
    and management methods, and advanced research facilities.
  • composed of diversified economies not dependent on oil,
    agriculture or mining alone.
A

Developed Countries

35
Q
  • have lower per capita income, a lower standard of living,
    higher foreign debt, more rapid population growth, and a
    history of greater state control over their economy.
  • Some rely on petroleum exports as their source of
    income
A

Developing Countries

36
Q
  • Are developing countries that have made rapid progress
    toward becoming industrialized or technology-based
    economies. They are located in all regions of the world
    including Latin America, Middle East and Southern and
    Southeast Asia
A

The Newly Industrialized Countries

37
Q
  • Are those defined by the United Nations the basis of several
    socioeconomic criteria.
  • Many of these countries have inadequate roads and bridges,
    inadequate public utilities and telephone systems, poor
    educational and healthcare facilities, lack of plentiful drinking
    water and any other economic and societal issues
A

The Least Developed Countries

38
Q

Common Risks of International Business

A
  • Distance and Logistics
  • Language and Cultural Differences
  • Cross-Border Trade Controls
  • Currency Risk
39
Q

It is one of the concerns in which the risk of refusing to pay for a
particular credit can be done in international business.

A

Distance and Logistics

40
Q

In this are the language disparity is one of the issues since most of the successful business people are not fluent in English.

A

Language and Cultural Differences

41
Q

The movement of goods is governed by the laws and regulations
of the countries to which they pass.

A

Cross-Border Trade Controls

42
Q

A firm is exposed to currency risk whenever it transacts business in a foreign currency or makes an investment in a host country whose currency is different from a home country.

A

Currency Risk

43
Q
  1. Common Regulations for Trade Control
A

Export, Controls, and Sanctions

44
Q

is a restriction on export of goods, services or
technology to a country or group of countries imposed fro
reasons of national security or foreign policy.

A

Export control

45
Q

are broader and more comprehensive restrictions
on trade and financial transactions with countries, who engage
in proliferation of weapons of mass destruction.

A

Sanctions

46
Q

The risk to a firm’s business interest resulting from political instability of civil unrest, political change, war, or terrorism in a country in which the firm is doing business.

A

Political Risk

47
Q

The transfer of private sector firms to government ownership and control, usually with payment to shareholders and pursuant to a larger plan to restructure a national economy or nationalization.

A

Political Risk: Loss of the Investor’s Property

48
Q

Types of Currency Risk

A
  • Exchange Rate Risk
  • Currency Control
49
Q

It results from the fluctuation in the relative value of two currencies when one is exchanged for the other.

A

Exchange Rate Risk

50
Q

Are restrictions on foreign currency transactions used by some
developing countries that do not have large reserves of foreign
currency.

A

Currency Control

51
Q

Types of Losing Investor’s Property

A
  • Expropriation
  • Confiscation
52
Q

Is the taking by a government of privately owned assets such as real estate, factories, farms, mines, oils, etc.

A

Expropriation

53
Q

Is expropriation without payment of any compensation.

A

Confiscation

Module 1 (17 decks)

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