1. When a Hong Kong fi rm makes an agreement with the Walt Disney Company to use the Disney logo and legally make jewelry in the shape of Disney cartoon characters, Disney is engaging in a form of international business known as ____________.
(a) exporting
(b) licensing
(c) joint venturing
(d) franchising
2. One major difference between an international business and a transnational corporation is that the transnational tries to operate ____________.
(a) without a strong national identity
(b) in at least six foreign countries
(c) with only domestic managers at the top
(d) without corruption
3. The Foreign Corrupt Practices Act makes it illegal for ____________.
(a) U.S. businesses to work with subcontractors running foreign sweatshop operations
(b) foreign businesses to pay bribes to U.S. government officials
(c) U.S. businesses to make “payoff s” abroad to gain international business contracts
(d) foreign businesses to steal intellectual property from U.S. firms operating in their countries
4. Th e World Trade Organization, or WTO, would most likely become involved in disputes between countries over ____________.
(a) exchange rates
(b) ethnocentrism
(c) nationalization
(d) tariff s and protectionism