TOPIC 2 Flashcards
Exporting countries can earn __ from importing countries.
a. Foreign exchange
b. Developed
c. Government benefits
d. E-commerce
a. Foreign exchange
MNCs from __ countries dominate international business.
a. Foreign exchange
b. Developed
c. Government benefits
d. E-commerce
b. Developed
Tax sops and financial incentives are examples of __ to attract foreign capital and business.
a. Foreign exchange
b. Developed
c. Government benefits
d. E-commerce
c. Government benefits
__ companies can function remotely and sell their products worldwide.
a. Foreign exchange
b. Developed
c. Government benefits
d. E-commerce
d. E-commerce
Which of the following could be defined as a multinational company?
a. A firm that owns shares in a foreign company but does not participate in the company’s decision making.
b. A UK based internet package holiday firm specializing in selling tours to Turkey to German customers.
c. A firm owning a chain of supermarket outlets outside its country of origin.
d. A finance company transferring its HQ and all its activities from the UK to the US.
c. A firm owning a chain of supermarket outlets outside its country of origin.
Which of the following can be used to enter or expand international operations for a firm?
a. Exporting
b. Licensing
c. Joint venture
d. All of the above
c. Joint venture
__ is the most common form of international business activity.
a. Exporting
b. Licensing
c. Greenfield strategy
d. Management contract
a. Exporting
The cross-border flow of goods and services is called international trade
a. True
b. False
a. True
One of the key benefits of international trade is that it allows consumers and producers to benefits by exploiting each country’s comparative advantages.
a. True
b. False
b. False
The ability to outsource is a key disadvantage of international trade for companies looking to reduce cost.
a. True
b. False
b. False
