03 Jul (MGT 520) – International Business
1. Which of the following represents a possible form of cooperation between international firms?
Cross-licensing of proprietary technology
Sharing of production facilities
Marketing of each other’s products
All of given options
2. A _____ is a business arrangement whereby two or more firms choose to cooperate for their mutual benefit.
Competitive advantage
Licensing agreement
Franchising arrangement
Strategic alliance
3. Which currency does an exporter typically prefer to use in a transaction?
Euro
Home country currency
Host country currency
4. General Mills and Nestle contributed around $80 million to create a new firm called Cereal Partners Worldwide. This is an example of a(n) _____.
Franchising arrangement
Acquisition strategy
Joint venture
Licensing agreement
5. Under the payment method of document collection, the term draft is referred to as _____ outside of the United States.
Bill of exchange
Bill of lading
Time draft
Sight draft
6. _____ implies that the national government exerts minimal influence on the exporting and importing decisions of private firms and individuals.
a. Fair trade
b. Free trade
c. Managed trade
d. Equitable trade
7. The price of foreign exchange is set by _____.
a. The international monetary fund
b. The gold standard
c. Demand and supply in the marketplace
d. The World Bank
8. On what unit of analysis did the first theories of international trade focus?
a. Individual countries
b. Country clusters
c. Regions
d. Continents
9. The first theories of international trade are referred to as _____.
a. Country-based theories
b. Firm-based theories
c. Classic theories
d. Investment theories
10. Which currency is used the most in international invoices?
b. Euro
c. Home country currency
d. Host country currency
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