Question

International business IB210

An intermediary that engages in import and export of a variety of com products and services is called a a. Customs broker 2. b. Foreign distributor c. Franchise d. Joint venture partner e. Trading company Which of the following is NOT one of the four central risks in international business listed in your book? a. Commercial risk b. Countertrade risk c. Country risk d. Cross-cultural risk e. Currency risk 3. An intermediary that handles orders to buy and sell commodities, products and services international business transactions for a commission is known as an a. International agent b. International arbiter c. International instrument 4. d. International mediator e International proxy 5· FDI stands for a. Final Departure Import b. First Domestic Import c. Focal Demand Intermationalization d. Foreign Direct Investment e. Full Disclosure Inquiry The tendency of a financial or monetary crisis in one country to spread rapidly to other countries due to the ongoing integration of national economies is known as 6. a. contagion b. contamination c. economic infectivity d. pollution e. septicity 7. China has some of the most diverse corporate structures in its mix of state-owned enterprises and private sector initiatives. For instance, all of these exist in China EXCEPT: Competitive state-owned enterprises that are 100% owned by the national government, such as the white goods maker Haier a.

Answer 1

2. e) A trading company assumes the international marketing functions on behalf of producers or those less experienced with international business. They are high volume, low margin re-sellers.

3. b) Counter trading happens typically in less developed countries where goods are exchanged for other goods rather than currency. A major risk involved is the value of product especially when the exchanged goods have highly volatile prices.

4. a) An agent acts as a representative of a foreign client and earns commission on concluded sales in the international market.  

5. d)

6. a) A situation where a financial shock in one economy spreads out and affects other global players through international markets or price movements or the exchange rate etc.  

7. d)