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Questions and Answers
Which factor does NOT influence international demand for a foreign good or service?
What is an example of a vehicle that companies use to do business in other countries?
What do licensing arrangements involve?
Which one of these best describes branch offices?
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What are strategic alliances?
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What is foreign direct investment (FDI)?
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Study Notes
International Business
- Exchange rates, inflation rates, and interest rates influence international demand for a foreign good or service, but distance does NOT.
Modes of Entry into International Markets
- A joint venture is an example of a vehicle that companies use to do business in other countries.
Licensing Arrangements
- Licensing arrangements involve a firm granting permission to another firm in a different country to manufacture or sell its products.
Branch Offices
- Branch offices are a type of foreign operation that is established and controlled by a parent company in another country, and operate as an extension of the parent company.
Strategic Alliances
- Strategic alliances refer to cooperative agreements between firms, which can take the form of joint ventures, licensing arrangements, or partnerships, in order to achieve common goals.
Foreign Direct Investment (FDI)
- Foreign direct investment (FDI) occurs when a firm invests in and controls a business in another country, such as by building a factory or acquiring a company.
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Description
Test your knowledge on business goals and objectives with this quiz! Learn about long-term and intermediate business goals and understand how they contribute to a company's success. Challenge yourself and see how well you understand the importance of setting strategic targets for businesses.
