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Unit1课后问答题

1、WhatdoesinternationalbusinessrefertoPleasetellthedifferencebetween

internationalbusinessanddomesticbusiness.P3

Internationalbusinessreferstotransactionsbetweenpartiesfromdiffirentcountries.

Therearefourmajordiffrencesbetweeninternationalbusinessanddomesticbusiness:

〔1)differencesinlegalsystem

〔2)differencesincurrencies

〔3)differencesincuturalbackground

〔4)differencesinnaturalandeconomicconditions

2、Pleaseexplainthedifferencesbetweenvisibletradeandinvisibletrade.Whichis

becomingmoreandmoreimportantandaccountsforanincreasingproportionin

internationaltradeP4

Commoditytrade,i.e，exportingandimportinggoodsproducedormanufacturedin

onecountryforconsumptionorresaleinanother.Thiskindoftradeisalsoreferredto

visibletrade.Invisibletradeisintheformoftransportation,communication,banking,

insurance,consulting,informationetc.

Invisibletradeisbecomingmoreandmoreimportantandaccountsforanincreasing

proportionininternationaltrade.

3、Canyoucitesomeexamplestoillustrateculturaldifferencesininternationalbusiness

P3

Culturaldifferencesincludinglanguage,customs,traditions,religion,value,behavior

etc.

4、Pleaseelaborateonthetwocategoriesofinternationalinvestment.Whatistheirmajor

differenceP4

ForeigndirectinvestmentsorFDIforshortismadeforreturnsthroughcontrollingthe

enterprisesorassetsinvestedininahostcountry.

Portfolioinvestmentreferstopurchasesofforeignfinancialassetsforapurposeotherthan

controlling.

5、WhatislicensingWhydofirmssometimeschooseitasmeansofenteringaforeign

marketP5

Inlicensing,afirmleasestherighttouseitsintellectualpro