SECTION A Instructions: Please answer all questions in this section. Mark the correct answer from the given options by drawing a circle around the correct answer. I) If a Dutch pension fund purchases 1,000 shares of Sony's stock. the Dutch company has most likely A) made a foreign direct investment B) made a foreign portfolio investment C) earned a higher return on assets D) earned a lower rate of return 2) Walt Disney permits a German clothing manufacturer to market children's pajamas embroidered with Mickey Mouse in return for a percentage of company sales. This is an example of A) franchising B) licensing C) leasing D) piracy 3) A(n) involves a firm in one country agreeing to operate facilities for a firm in another country for an agreed fee. A) franchising agreement B) licensing agreement C) management contract D) indirect investment 4) Which of the following is a common activity of MNCs? A) training of international managers B) buying resources in various countries C) inventing goods in a variety of countries D) establishing foreign exchange rates 5) The integration of markets, nation-states, and technologies in a way that is enabling individuals, corporations, and nation-states to reach around the world farther, faster, deeper, and cheaper than ever before is referred to as A) international business organization B) market internationalization C) economic integration D) globalization 6) Capital supplied by residents of one country to residents of another is known as A) international investments B) host-country financing C) international franchising D) domestic inversion financing