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1、KeyChapter1I.Answermyquestions1.Internationaltradeisbusinesswhoseactivitiesinvolvethecrossingofnationalborders.Itincludesnotonlyinternationaltradeandforeignmanufacturingbutalsoencompassesthegrowingservicesindustryinareassuchastransportation,tourism,banking,ad
2、vertising,construction,retailing,wholesaling,andmasscommunications.Itincludesallbusinesstransactionsthatinvolvetwoormorecountries.Suchbusinessrelationshipmaybeprivateorgovernmental.2.Salesexpansion,resourceacquisitionanddiversificationofsalesandsupplies.3.Tog
3、ainprofit.4.Toseejoutforeignmarketsandprocurement.5.Therearefourmajorformswhicharethefollowing:MerchandiseexportsandImports,ServiceExportsandImports,InvestmentandMultinationalEnterprise.6.Itistheaccountwhichisasummarystatementoftheflowofallinternationaleconom
4、icandfinancialtransactionsbetweenonenation(eg.theUnitedStates)andtherestoftheworldoversomeperiodoftime,usuallyoneyear.7.MerchandiseExportingandImporting.8.Yes.Therearegreatdifferencesbetweenthem.1)directinvestmenttakesplacewhencontrolfollowstheinvestment.Itus
5、uallymeanshighcommitmentofcapital,personnel,andtechnologyabroad.Itaimsatgainingofforeignresourcesandforeignmarkets.Directinvestmentmayoftengethigherforeignsalesthanexporting.Andsometimesitinvolvestwoormoreparties.2)Whileportfolioinvestmentsarenotundercontrol.
6、Andtheyareusedprimarilyforfinancialpurposes.Treasuresofcompanies,forexample,routinelymorefundsfromonecountrytoanothertogetahigheryieldonshortterminvestments.9.MNEistheabbreviationofthemultinationalenterprise.ItssynonymsareNNC(themultinationalcorporation)andTN
7、C(transnationalcorporation).10.Examplesaretravel,transport,fee,royalties,dividendsandinterest.11.Thechoiceofformsisinfluencedbytheobjectivebeingpursuedandtheenvironmentsinwhichthecompanymustoperate.12.Itislimitedbythenumberofpeopleinterestedinafirm’sproductsa
8、ndservicesandbycustomers’capacitytomakepurchase.13.Thisisbecauseatanearlystageofinternationalinvolvementtheseoperationsusuallytaketheleastcommitmentandleastriskofafirm’sresources.14.Royal