1. The athletic footwear maker New Balance discovered that exact copies of its running shoe designs were on sale in China under the name “New Barlun.” Th is is an example of a/an ____________ problem in international business.
(a) most favored nation
(b) global strategic alliance
(c) joint venture
(d) intellectual property rights

2. When the profits of large international businesses are disproportionately high relative to those of smaller firms and even the economies of some countries, this is called ____________.
(a) return on risk for business investment
(b) the globalization gap
(c) protectionism
(d) most favored nations status

3. If a new government comes into power and seizes all foreign assets in the country without any payments to the owners, the loss to foreign firms is considered a ____________ risk of international business.
(a) franchise
(b) political
(c) currency
(d) corruption

4. Who gains most when the dollar weakens versus a foreign currency such as the Brazilian Real?
(a) American consumers of Brazilian products.
(b) Brazilian firms selling products in America.
(c) American firms selling products in Brazil.
(d) Brazilian consumers of European products.