QUIZ No. 2Semester fall, 2016International Business (MGT 520)Marks: 10Which of the following represents a possible form of cooperation between international firms?Cross-licensing of proprietary technologySharing of production facilitiesMarketing of each otherâs productsAll of given optionsA _____ is a business arrangement whereby two or more firms choose to cooperate for their mutual benefit.Competitive advantageLicensing agreementFranchising arrangementStrategic allianceWhich currency does an exporter typically prefer to use in a transaction?U.S. dollarsEuroHome country currencyHost country currency4. General Mills and Nestle contributed around $80 million to create a new firm called Cereal Partners Worldwide. This is an example of a(n) _____.Franchising arrangementAcquisition strategyJoint ventureLicensing agreement5. Under the payment method of document collection, the term draft is referred to as _____ outside of the United States.Bill of exchangeBill of ladingTime draftSight draft6. _____ implies that the national government exerts minimal influence on the exporting and importing decisions of private firms and individuals.a. Fair tradeb. Free tradec. Managed traded. Equitable trade7. The price of foreign exchange is set by _____.a. The international monetary fundb. The gold standardc. Demand and supply in the marketplaced. The World Bank8. On what unit of analysis did the first theories of international trade focus?a. Individual countriesb. Country clustersc. Regionsd. Continents9. The first theories of international trade are referred to as _____.a. Country-based theoriesb. Firm-based theoriesc. Classic theoriesd. Investment theories10. Which currency is used the most in international invoices?a. U.S. dollarsb. Euroc. Home country currencyd. Host country currency
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