CHAPTER 1 MGT2593 QUIZ

What is the best definition of international business?

• Business conducted within a country

• Business conducted for domestic markets only

• Business involving transactions across national borders

• Business with local suppliers only

Which of the following is NOT part of international business?

• Licensing

• Franchising

• Local retailing only

• Foreign direct investment

Which business is confined within national borders?

• International business

• Domestic business

• Global business

• Transnational business

One example of international business is:

• A Malaysian selling nasi lemak in Penang

• An American company exporting shoes to Malaysia

• A shop selling vegetables at a local market

• Government distributing aid to local states

A feature of domestic business is:

• Involves more than one country

• Deals only within the country

• Uses international investment

• Requires foreign licensing

Which sector is NOT directly related to international business?

• Tourism

• Mass communication

• Construction

• Local street vending

Visible trade refers to:

• Export and import of services

• Licensing of intellectual property

• Export and import of physical goods

• Online advertising

Which of the following is an example of invisible trade?

• Exporting palm oil

• Importing smartphones

• Providing consulting services abroad

• Manufacturing shoes

Licensing is when a company:

• Gives legal rights to use its product

• Buys raw material overseas

• Pays tax to the government

• Acquires land in another country

Franchising involves:

• Hiring employees from abroad

• Building new factories

• Allowing others to operate using a company’s brand

• Selling land to foreign companies