TOPIC 1 WHAT IS INTERNATIONAL BUSINESS?

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Assess your understanding by answering the following questions.

EXERCISE 1.2

1. International tourism and transportation are important sources of

revenue for the following companies, EXCEPT:
A. Airlines
B. Travel agencies
C. Hotels
D. Shopping centres

2. A ____________ company allows each of its foreign subsidiary to

operate independently, such as in designing and producing a
product or service for the local market.
A. transnational
B. global
C. multidomestic
D. multinational

3. The Disney Company which allows other firms to use their brand
names, logos and characters in return for royalty payment, is
involved in:
A. Exporting of goods
B. Importing of goods
C. Licensing
D. Franchising

4. International business does not include the purchase of financial

assets such as shares and bonds.
A. True
B. False

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