1. Chapter 14.

Consider the following scenario and answer the following questions: a group of Japanese customers come to the U.S. to travel; they fly with the American airlines and spend a week at the Disney world resort in Florida. During their stay, they receive services of various sorts offered by local businesses (e.g., gift shops, hotels, and restaurants). In the above case, please answer

(1) what form of international business is involved above, important or export (Hint: its both)? Which country is importing, which country is exporting? (2) what form of import/export is involved, visible or invisible? Please give examples to illustrate.

2. Chapter 15.

In addition to import and export (which is the most common mode of operation in international business),

(1) what are some alternative forms of operation in international business (Hint: foreign direct investment, collaborative arrangements, licensing, franchising, joint venture, etc.)? Please specify at least two alternative forms of operation.

(2) Using the two alternative forms of operation you picked, please analyze why one may or may not prefer them to import and export?