question

What three categories is international business classified into?

answer

trade licensing of intellectual property foreign direct investment

question

Trade

answer

the import or export of goods and services across national borders

question

Trade in Services

answer

refers to the providing of services to a customer or the operation of service companies in a foreign country

question

Exporting

answer

shipping goods or rendering services to a foreign buyer in a foreign country

question

What does exporting offer businesses looking to go abroad?

answer

allows for exploration before venturing further, only a modest of capital investment, risks are manageable

question

Direct Exporting

answer

type of exporter assuming the responsibility for most of the export functions including marketing, shipping, licensing

question

Foreign Sales Representatives

answer

independent sales agents who solicit orders on behalf of their principals and receive compensation on a commission basis

question

Foreign Distributors

answer

Independent firms, usually located in the country or region to which a firm is exporting, that purchase and take delivery of goods for resale to their customers

question

Indirect Exporting

answer

the use of intermediary that can take on many of the export functions

question

International trading companies

answer

firms that specialize in all aspects of import/export transactions by either buying goods on their own accounts for resale or by acting as a middlemen to bring other buyers and sellers together

question

Export Trading Company Act

answer

gave US trading co the ability to waive the application for US anti trust laws to their export activities only if they can prove that their actions will not harm competition in the US or unreasonably affect domestic prices of the exported prodcuts

question

Export Management Companies

answer

independent firms that assume export related duties for manufacturers, producers, or other exporters

question

What does it take for a small business to be a successful exporter?

answer

- a firm failing at home will not be able to bear the costs of going abroad -success/failure is often due to the commitment made to international business at an executive level -requires the company to adapt to new social, cultural, political, and economic environment

question

License

answer

asset that can be transferred by the owner or holder to the licensee through a grant of rights in that property

question

Licensing Agreements

answer

contracts by which the holder will grant certain rights in that property to another party under specified conditions and for a specified time, in return for considerations, such as a fee or royalty

question

World Intellectual Property Organization

answer

fosters government cooperation in developing IP policies and registration in some IP areas

question

Infringement

answer

violation of IP rights of another, often occurs in the unauthorized use, distribution, or appropriation of those rights

question

International Franchising

answer

business arrangement that uses an agreement to license, control, and protect the se of the franchisor's patents, trademarks, copyrights, or business know how in return for royalties, fees, or commissions

question

Foreign Branch

answer

business presence by the investor in the host country, branch or entire network of operational facilities

question

Foreign Subsidiary

answer

"foreign" company organized under the laws of a foreign host country, but owned and controlled by the parent corporation in the home country

question

Affiliates

answer

several subsidiaries owned by one parent

question

Joint Venture

answer

cooperative business arrangement between two or more companies for profit, may take the form of a partnership or corp

question

Local Participation

answer

means that a share of the business is owned by nationals of the host country

question

Foreign Direct Investment

answer

Ownership and active control of ongoing business concerns including investment in manufacturing, mining,

question

Transnational Co.

answer

the corporations operations and interests "transcend" national boundaries

question

Developed Country

answer

have a high per capita income, have a high standard of living, and are in the later stages of industrialization, advanced tech, modern production and management methods

question

Developing Countries

answer

Lower per capita income, lower standard of living, higher foreign debt, more rapid population growth

question

Payment or Credit Risk

answer

- the risk that the buyer will fail or refuse to pay, finding ways of assuring payment for goods being shipped to far off countries

question

Supplier Risk

answer

the risk of being victims or fraud or receiving defective goods

question

Export Controls

answer

a restriction on exports of goods, services, money, or technology to a country or group of countries imposed for reasons of national security or foreign policy.

question

Sanctions

answer

are broader and more comprehensive restrictions on trade and financial transactions with countries, who sponsor international terrorism

question

Tariff

answer

an import duty or tax imposed on goods entering the customs territory of a nation

question

Non tariff barriers

answer

all barriers to the import of foreign goods or services other than tariffs

question

Quota

answer

quantitative restriction on imports that limits the quantity of an item that may enter the country annually

question

Exchange rate risk

answer

results from the fluctuations in the relative value of two currencies when one is exchanged for the other

question

Currency Controls

answer

restrictions on foreign currency transactions used by some developing countries that do not have large reserves of foreign currency

question

Repartriating Profits

answer

earned by the subsidiary companies within the country

question

Political Risk

answer

is generally defined as the risk to a firm's business interests resulting from political instability or civil unrest, political change, war, or terrorism in a country in which the firm is doing business

question

Nationalization

answer

the transfer of private sector firms to government ownership and control, usually with payment to shareholders and pursuant to a larger plan to restructure a national economy

question

Expropriation

answer

is the taking by a government of privately owned assets, such as real estate, factories, farms, mines, or oil refineries, with the payment of compensation.

question

Confiscation

answer

is expropriation without payment of compensation

question

Freight forwarders and custom brokers

answer

act as the agent for the exporter or importer in arranging transportation and insurance for goods, preparing import or export documents, and moving through customs

question

Treaty

answer

a binding agreement between two or more nations; bilateral or multilateral

question

Convention

answer

legally binding multilateral treaty of matters of common concern

question

Self Executing Treaty

answer

one that automatically creates rights that are enforceable in the courts of the country, without any further legislative actions

question

Non self executing treaty

answer

one without direct effect, requires additional legislative act before it becomes enforceable in national courts

question

Protocol

answer

modifies or adds to a treaty or convention

question

Ratification

answer

formal expression of a nation's consent

question

Signatories

answer

nations adopting treaty

question

Reservation

answer

exception to treaty

question

Treaties of Friendship, Commerce and Navigation

answer

bilateral agreements that provide protection to foreign nationals doing business in a host country

question

Customary International Law

answer

includes those commonly accepted rules of conduct that, through a consistent and long standing practice, nations have followed out of a sense of binding obligation

question

Jurisdiction

answer

the power of a court to act

International Business Law-midterm 1 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards