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Solution of Quiz No. 1
1. Which of the following represent reasons that international business differs from
domestic business?
a. currencies
b. legal systems
c. cultures
d. all of the above
2. _____ is the buying of products made in other countries for use or resale in one’s
own country.
a. Exporting
b. Importing
c. Merchandising
d. Trading
3. Boeing sells commercial aircraft to Lufthansa in Germany. This is an example of
_____.
a. exporting
b. importing
c. merchandising
d. trading
4. Trade in goods includes products such as _____.
a. clothing
b. banking
c. travel
d. accounting
e. all of the above
5. The international business activity called _____ occurs when capital is supplied
by residents of one country to residents of another country.
a. international investment
b. foreign direct investment
c. portfolio investment
d. financial insurance
6. Which country has the highest level of exports as a percentage of GDP according
to the text?
a. United States
b. Japan
c. Netherlands
d. Indonesia
7. In 2002, _____ was considered the world’s largest corporation according to the
text.
a. Nike
b. Coca-Cola
c. McDonald’s
 d. Wal-Mart

8. _____ consist(s) of business transactions between parties from more than one
country.
a. Currency exports
b. International business
c. Domestic business
d. Global ventures
e.
9. _____ is where the parent company’s headquarter is located.

a. Host country
b. Home country
c. Parental country
d. United States

10. Licensing usually involves permission to use _____.

a. patents
b. trademarks
c. brand names
d. all of the above