15 Questions
Which method of international business involves the inflow of goods into the home country's market?
Importing
What is a common problem associated with the licensing method of international business?
Lack of control over technology
Which form of international business allows a company to distribute and sell standardized products in the international market?
Licensing
What is a potential disadvantage of importing and exporting in international business?
High transport costs
Which method of international business involves a company using ownership rights to distribute and sell products internationally?
Licensing
What is the primary difference between franchising and joint venture?
Franchising involves giving the right to conduct business using the parent company’s name, while joint venture involves a contract between an international company and a local company.
What is a disadvantage of franchising mentioned in the text?
Lack of control over quality.
What advantage of joint venture is highlighted in the text?
Access to local partner's knowledge.
What is the key difference between outsourcing and offshoring?
Outsourcing means giving out contracts to international firms, whereas offshoring involves setting up independent operations in multiple countries.
Which type of companies have independent operations in each country?
Multinational Companies
Which method is mentioned as being effective when the cost of conducting certain business processes is cheaper in another country?
Outsourcing
What is a disadvantage of joint venture according to the text?
Inability to engage in global strategic coordination.
What is a key feature of multinational companies as per the text?
Setting up independent operations in multiple countries.
What is a similarity between franchising and licensing as per the text?
Both involve giving the right to conduct business using the parent company’s name/ brand and products.
What advantage does outsourcing provide, according to the text?
Cost-effectiveness when certain business processes are cheaper in another country.
Test your knowledge on forms of international business such as importing, exporting, licensing, franchising, joint ventures, outsourcing, and wholly owned subsidiaries. Explore the methods used in international trade and business expansion.
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