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1、Whatdoesinternationalbusinessreferto?Pleasetellthedifferencebetweeninternationalbusinessanddomesticbusiness*1.Internationalbusinessreferstotransactionsbetweenpartiesfromdiffirentcountries.Therearefourmajordiffrencesbetweeninternationalbusinessanddomesticbusiness:1)
2、differencesinlegalsystem2)differencesincurrencies3)differencesincuturalbackground4)differencesinnaturalandeconomicconditionsPleaseexplainthedifferencesbetweenvisibletradeandinvisibletrade.Whichisbecomingmoreandmoreimportantandaccountsforanincreasingproportionininte
3、rnationaltrade?2.Commoditytrade,i.cexportingandimportinggoodsproducedormanufacturedinonecountryforconsumptionorresaleinanother.Thiskindoftradeisalsoreferredtovisibletrade.Invisibletradeisintheformoftransportation,communication,banking,insurance,consulting,informati
4、onetc.Invisibletradeisbecomingmoreandmoreimportantandaccountsforanincreasingproportionininternationaltrade.Canyoucitesomeexamplestoillustrateculturaldifferencesininternationalbusiness?3.Culturaldifferencesincludinglanguage,customs,traditions,religion,value,behavior
5、etc.Pleaseelaborateonthetwocategoreisofinternationalinvestment.Whatistheirmajordifference?4.ForeigndirectinvestmentsorFDIforshortismadeforreturnsthroughcontrollingtheenterprisesorassetsinvestedininahostcountry.Portfolioinvestmentreferstopurchasesofforeignfinanciala
6、ssetsforapurposeotherthancontrolling.Whatislicensing?Whydofirmssometimeschooseitasmeansofenteringaforeignmarket?5.Inlicensing,afirmleasestherighttouseitsintellectualpropertytoafirminanothercountry.Firmschooselicensingbecausetheydonotwanttomakecashpaymentstostartbus
7、iness,andcansimplyreceiveincomeintheformofroyalty.Besides,theycanbenefitfromlocationaladvantegesofforeignoperationwithoutanyobligationsinownershipormanagement.Whatisfranchising?Howisitdifferentfromlicensing?6.Underfranchising,afim,calledthefranchisee,isallowedtoope
8、rateinthenameofanother,calledthefranchiserwhoprovidestheformerwithtrademarks,brandname,logos,andoperatingtechniquesforroyalty.Incomparisionwithth
