1) does not require setting up any manufacturing plant in the nations the products are marketed. It involves producing goods locally. 2) Sybil is a US sports goods manufacturer and has set up its operations in Tanzania. What benefits can Sybil gain from this FDI?
Sybil can take advantage of and thereby economize its cost of operation. It should also explore new markets in the country because the transportation cost of bringing goods from the manufacturing plant to the customer

3)Which type of international business has the highest capital outlay because units need to be set up in the host nation?
A.
franchising
B.
licensing
C.
foreign direct investment
D.
exporting
E.
importing

4)What are the four factors in a CAGE analysis?
A.
culture, administration, geography, economics
B.
creation, administration, goals, execution
C.
culture, access, goals, economics
D.
creation, access, geography, execution
E.
culture, administration, goal, economics

5)Why did the Great Depression of 1928 affect people from almost all parts of the world?
A.
The world economy by this time was quite dependent on global trade.
B.
People who lost their jobs in the United States moved to Asia for jobs.
C.
Sharp rise in price of goods in the United States led to an increase in imports.
D.
Trade routes between the United States and Asia were temporarily closed down.
E.
The United States stopped exporting goods to Europe.

6) Categorize the viewpoints that are a part of the two perspectives of global trade.

7)In which type of foreign direct investment is Kathy’s company involved?
Kathy’s company is planning to construct a new factory and two new stores in a foreign country. The land that Kathy’s company has selected for constructing the factory was originally a pasture. Kathy’s company is involved in a investment in the foreign country.

8)Which example best describes foreign aid?

A.
Country A exports only those goods that Country B requires.
B.
Country A imports goods produced by Country B.
C.
Country A and Country B sign a free trade agreement.
D.
Country A provides legal expertise to Country B for its trade disputes.
E.
Country A provides a grant to Country B.

9)According to Porter’s theory, which factors play a key role in providing a competitive edge to a country?

A.
factor conditions; supply conditions; related and supporting industries; firm strategy, structure, and rivalry
B.
factor productivity; demand conditions; related and supporting industries; firm strategy, structure, and rivalry
C.
factor conditions; demand conditions; related and supporting industries; firm profits
D.
factor conditions; demand conditions; related and supporting industries; firm strategy, structure, and rivalry

10)What is opportunity cost?

the value of the third-best alternative that a person gives up when making a choice
the value of the immediate best alternative that a person gives up when making a choice
the value of the second-best alternative that a person gives up when making a choice
the value of the last best alternative that a person gives up when making a choice
the value of the second-worst alternative that a person gives up when making a choice