You are on page 1of 2


QUIZ No. 2
Semester fall, 2006

International Business (MGT 520)

Marks: 10

1. Which of the following represents a possible form of cooperation between

international firms?
a. Cross-licensing of proprietary technology
b. Sharing of production facilities
c. Marketing of each other’s products
d. All of given options

2. A _____ is a business arrangement whereby two or more firms choose to

cooperate for their mutual benefit.
a. Competitive advantage
b. Licensing agreement
c. Franchising arrangement
d. Strategic alliance

3. Which currency does an exporter typically prefer to use in a transaction?

a. U.S. dollars
b. Euro
c. Home country currency
d. Host country currency

4. General Mills and Nestle contributed around $80 million to create a new firm
called Cereal Partners Worldwide. This is an example of a(n) _____.
a. Franchising arrangement
b. Acquisition strategy
c. Joint venture
d. Licensing agreement

5. Under the payment method of document collection, the term draft is referred to as
_____ outside of the United States.
a. Bill of exchange
b. Bill of lading
c. Time draft
d. Sight draft
6. _____ implies that the national government exerts minimal influence on the
exporting and importing decisions of private firms and individuals.
a. Fair trade
b. Free trade
c. Managed trade
d. Equitable trade

7. The price of foreign exchange is set by _____.

a. The international monetary fund
b. The gold standard
c. Demand and supply in the marketplace
d. The World Bank

8. On what unit of analysis did the first theories of international trade focus?
a. Individual countries
b. Country clusters
c. Regions
d. Continents

9. The first theories of international trade are referred to as _____.

a. Country-based theories
b. Firm-based theories
c. Classic theories
d. Investment theories

10. Which currency is used the most in international invoices?

a. U.S. dollars
b. Euro
c. Home country currency
d. Host country currency