INTERNATIONAL BUSINESS FINAL PAPER
FULL QUESTIONS AND CORRECT ANSWERS
ALREADY PASSED
●● International Business
Answer: All commercial transactions between two or more countries.
Only exists when funds move across boarders. (ex) I bought my plane
ticket to Italy from American Airlines- this was NOT considered
international business because the funds went to the same country. If I
bought my ticket from a foreign country it would be considered
international trade.
●● Two Types of International Business and Differences Between them
Answer: Public = has shareholders
Private = does not have shareholders
●● In what ways does international business influence domestic
operations?
Answer: Physical
Societal
Competitive
(ex) banks- amount of public companies are changing
,Fiat- biggest Italian car producer 10% owned by son 10% US stock and
80% Italy
●● Why engage in international business?
Why is it important to study?
Answer: Expand sales
Acquire Resources (better resources, services, products)
Minimize Risk (diversity among diff countries taking advantage of
business cycle)
Important to study because = today global events affect almost all
companies everywhere.
●● Reasons for Growth in International Business/Globalization
Answer: 1) Technology- increase and expansion
2) Transportation- quicker and lower costs
3) Increased Global Competition
4) Communication- control from afar
5) Consumer Pressure
6) Liberal govt policies on trade
7) Development of institutions that support Int'l trade
●● *essay
Modes of International Business
,Answer: Importing & Exporting = (trade) merchandise is most common
but services are also traded. (ex) merch: Italy exports wine, the physical
finished product, to the US. (ex) service: tourism and transportation, turn
key operations, licensing and franchising (bud wiser gave peroni license
to sell bud wiser in Italy (licensing)
Investments = factors of production can be a direct investment (control-
joint ventures) and portfolio investments (no control)
●● Two Types of Investments
Answer: Direct Investments (control) joint ventures- new activity started
by 2 or more partners
Portfolio Investments (no control) stocks
●● Example of a French export would be a visit by a
Answer: **US citizen to Euro Disney in France
xxx French Citizen to Disneyland in the US
●● When one party allows another party the use of a trademark and
assist that other party on a regular basis the arrangement is known as a
Answer: Franchise
●● MNE
Answer: Multinational Enterprise is a global approach to markets and
production
, ●● Types of Ownership
Answer: Propritorship = one owner
Partnership = 2 or more owners
Cooperation
(all three of these could go global)
(ex) nestle chocolate brand is so globalized that you no longer associate
it with one country (switzerland)
●● Offshoring
Answer: transferring production abroad (seen as controversial)
●● Antiglobalists 3 thoughts on Globalization
Answer: 1) threats to national sovereignty
2) promotes growth that causes environmental stress
3) increase income unequally (skews income distribution)
●● Why is it important to understand cultural environments facing
business?
Answer: It is important for companies to unlearns and be sensitive to
constantly changing environments.
●● Major Cultural Issues Occur in International Business when:
FULL QUESTIONS AND CORRECT ANSWERS
ALREADY PASSED
●● International Business
Answer: All commercial transactions between two or more countries.
Only exists when funds move across boarders. (ex) I bought my plane
ticket to Italy from American Airlines- this was NOT considered
international business because the funds went to the same country. If I
bought my ticket from a foreign country it would be considered
international trade.
●● Two Types of International Business and Differences Between them
Answer: Public = has shareholders
Private = does not have shareholders
●● In what ways does international business influence domestic
operations?
Answer: Physical
Societal
Competitive
(ex) banks- amount of public companies are changing
,Fiat- biggest Italian car producer 10% owned by son 10% US stock and
80% Italy
●● Why engage in international business?
Why is it important to study?
Answer: Expand sales
Acquire Resources (better resources, services, products)
Minimize Risk (diversity among diff countries taking advantage of
business cycle)
Important to study because = today global events affect almost all
companies everywhere.
●● Reasons for Growth in International Business/Globalization
Answer: 1) Technology- increase and expansion
2) Transportation- quicker and lower costs
3) Increased Global Competition
4) Communication- control from afar
5) Consumer Pressure
6) Liberal govt policies on trade
7) Development of institutions that support Int'l trade
●● *essay
Modes of International Business
,Answer: Importing & Exporting = (trade) merchandise is most common
but services are also traded. (ex) merch: Italy exports wine, the physical
finished product, to the US. (ex) service: tourism and transportation, turn
key operations, licensing and franchising (bud wiser gave peroni license
to sell bud wiser in Italy (licensing)
Investments = factors of production can be a direct investment (control-
joint ventures) and portfolio investments (no control)
●● Two Types of Investments
Answer: Direct Investments (control) joint ventures- new activity started
by 2 or more partners
Portfolio Investments (no control) stocks
●● Example of a French export would be a visit by a
Answer: **US citizen to Euro Disney in France
xxx French Citizen to Disneyland in the US
●● When one party allows another party the use of a trademark and
assist that other party on a regular basis the arrangement is known as a
Answer: Franchise
●● MNE
Answer: Multinational Enterprise is a global approach to markets and
production
, ●● Types of Ownership
Answer: Propritorship = one owner
Partnership = 2 or more owners
Cooperation
(all three of these could go global)
(ex) nestle chocolate brand is so globalized that you no longer associate
it with one country (switzerland)
●● Offshoring
Answer: transferring production abroad (seen as controversial)
●● Antiglobalists 3 thoughts on Globalization
Answer: 1) threats to national sovereignty
2) promotes growth that causes environmental stress
3) increase income unequally (skews income distribution)
●● Why is it important to understand cultural environments facing
business?
Answer: It is important for companies to unlearns and be sensitive to
constantly changing environments.
●● Major Cultural Issues Occur in International Business when:
