D270 Midterm Davis Questions With
100% Correct Answers
\Q\.Globalization - ANSWER-✔A ;process of broadening of interdependent relationships among
people who are divided into national borders.
\Q\.International Business - ANSWER-✔Any commercial transactions between 2 or more
countries
\Q\.Extent of Globalization - ANSWER-✔1. Increase in and application of technology
2. Liberalization of cross-border trade
3. Development of services that support international business
4. growing consumer pressures
5. Increased global competition
6. Changing political situation and gov policies
7. Expand cross nation cooperation
\Q\.Negative side of globaliztion - ANSWER-✔-Threats to National Sovereignty
-Emotional Stress
-Growing Income inequality
\Q\.Why go International - ANSWER-✔-Expand sales
-Acquire Resources
, -Minimize Risk
\Q\.How many countries are there? - ANSWER-✔193
\Q\.Modes of International Business - ANSWER-✔Exports/imports and investments
\Q\.What type is a Foreign Direct Investment - ANSWER-✔Controlling interest investment
\Q\.What type is a portfolio investment - ANSWER-✔Non-controlling interest investment
\Q\.Direct exports - ANSWER-✔Taking orders in home market and shipping them direct to a
customers in a new market
\Q\.Exporting via Local Distributor - ANSWER-✔Entering an agreement for a local distributor to
sell goods produced in home market in a new market
\Q\.Licensing and Franchising - ANSWER-✔Entering an agreement for local manufacturer to
produce and sell goods in a new market.
\Q\.Sales Operation - ANSWER-✔Setting up a sales team in a new market to sell goods
produced in home market
\Q\.Equity Investment - ANSWER-✔Purchase minority stake in an existing firm in a new market,
enter an agreement to work with the firm in that market.
\Q\.Joint Venture - ANSWER-✔Creation of new entity in a new market with one or more other
firms as joint owners in the new entity.
100% Correct Answers
\Q\.Globalization - ANSWER-✔A ;process of broadening of interdependent relationships among
people who are divided into national borders.
\Q\.International Business - ANSWER-✔Any commercial transactions between 2 or more
countries
\Q\.Extent of Globalization - ANSWER-✔1. Increase in and application of technology
2. Liberalization of cross-border trade
3. Development of services that support international business
4. growing consumer pressures
5. Increased global competition
6. Changing political situation and gov policies
7. Expand cross nation cooperation
\Q\.Negative side of globaliztion - ANSWER-✔-Threats to National Sovereignty
-Emotional Stress
-Growing Income inequality
\Q\.Why go International - ANSWER-✔-Expand sales
-Acquire Resources
, -Minimize Risk
\Q\.How many countries are there? - ANSWER-✔193
\Q\.Modes of International Business - ANSWER-✔Exports/imports and investments
\Q\.What type is a Foreign Direct Investment - ANSWER-✔Controlling interest investment
\Q\.What type is a portfolio investment - ANSWER-✔Non-controlling interest investment
\Q\.Direct exports - ANSWER-✔Taking orders in home market and shipping them direct to a
customers in a new market
\Q\.Exporting via Local Distributor - ANSWER-✔Entering an agreement for a local distributor to
sell goods produced in home market in a new market
\Q\.Licensing and Franchising - ANSWER-✔Entering an agreement for local manufacturer to
produce and sell goods in a new market.
\Q\.Sales Operation - ANSWER-✔Setting up a sales team in a new market to sell goods
produced in home market
\Q\.Equity Investment - ANSWER-✔Purchase minority stake in an existing firm in a new market,
enter an agreement to work with the firm in that market.
\Q\.Joint Venture - ANSWER-✔Creation of new entity in a new market with one or more other
firms as joint owners in the new entity.
