U1 Types of International Business

Question 1

Protectionism

Answer 1

• is the economicpolicy of protecting a nation’s
  manufacturing base from the effects of foreign
  competition (such as including Dumping) by means of hightariffs on imported goods,restrictive quotas, and other means of reducing importation.
• This contrasts with free trade, in which foreign products are exempted from tariffs, allowing foreign producers to access a domestic market without any tax burden

Question 2

Dumping

Answer 2

act of a manufacturer in one country exporting a
product to another country at what some perceive as an unreasonably low price

Question 3

Import

Answer 3

Bringing in goods and services to satisfy needs and wants of their own consumers

Question 4

Export

Answer 4

Enabling products grown or made domestically to travel to a foreign country

Question 5

Foreign Direct Investments

Answer 5

• establishing a Subsidiary operation or setting up a joint venture.
• Purchase a controlling interest in a foreign company

Question 6

Portfolio Investment

Answer 6

• an investor buys a share of a foreign company but has no controlling interest in how the company is run
• less risky