1.Whatdoesinternationalbusinessreferto?Pleasetellthedifferencebetweeninternationalbusinessanddomesticbusiness?Internationalbusinessreferstotransactionbetweenpartiesfromdifferentcountries.Sometimesbusinessacrossthebordersofdifferentcustomsareasofthesamecountryisalsoregardedasimportandexport.Internationalbusinesstakesplacebetweencountrieswhiledomesticbusinesstakesplaceinthesamecountry.Differencesinlegalsystem;incurrencies;inculturalbackground;innaturalanddomesticconditions.2.Visibletradeandinvisibletrade.Visibletradereferstotheformofcommoditytrade,i.e.Exportingandimportinggoodsproducedormanufacturedinonecountryforconsumptionorresaleinanother.Invisibletradereferstothechangeofservicesbetweencountries.3.Yes,inbusinessactivities,AmericanaremoreinformalthanEuropean.4.Internationalinvestmentcanbeclassifiedintotwocategoriesthisis:wocategoriesofinternationalinvestment.Whatistheirmajordifference?①FDIforeigndirectinvestment.②portfolioinvestmentMajordifferencebetweenthemisthatformerismadeforreturnsthroughcontrollingtheenterprisesorassetsinvestedininahostcountry.Thelatterreferstopurchaseofforeignfinancialassetsforapurposeotherthancontrolling.5.Inlicensing,afirmleasestherighttouseitsintellectualpropertytoafirminanothercountry.Firmschooselicensingbecausetheydonothavemakepaymentstostartbusiness,andcansimplyreceiveincomeintheformofroyalty.Besides,theycanbenefitfromlocaladvantagesofforeignoperationwithoutanyobligationinownershipormanagement.6.Franchisingcanberegardedasaspecialformoflicensing.Underfranchising,afirm,calledthefranchisee,isallowedtooperatethefranchiserwhoprovidestheformerwithtrademarks,brandnames,logos,andoperatingtechniquesforroyalty.Incomparisonwiththerelationbetweenthelicenserandthelicnsee,thefranchiserhasmorecontroloverandprovidesmoresupportforthefranchisee.7.Underamanagementcontract,onecountryoffermanagerialorotherspecializedservicestoanotherwithinaparticularperiodforaflatpaymentorapercentageoftherelevantbusinessolume.Whenagovernmentforbidsforeignownershipincertainindustries,itismostapplicable.8.Foraninternationalturkeyproject,afirmsignsacontractwithaforeignpurchaserandundertakesallthedesigning,contractingandfacilityequippingbeforehandingitovertolatteruponcompletion.ForBOT,Bstandsforbulid,OforoperateandTfortransfer.BOTisapopularvariantoftheturkeyproject.ForaBOTproject,afirmoperateafacilityforaperiodoftomeafterbuildingitupbeforefinallytransferringittoaforeigncompany.MakingprofitfromoperatingtheprojectforaperiodisthemajordifferencebetweenBOTandthecommonturkeyproject.1.GNPandGDParetwoimportantconceptsusedtoindicateacountry'stotalincome.GNPreferstothemarketvalueofgoodsandservicesproducedbythepropertyandlabourownedbytheresidentsofaneconomy.GDPmeasuresthemarketvalueofallgoodsandservicesproducedwithinthegeographicareaofaneconomy.ThemajordifferencebetweenGNPandGDPisthattheformerfocusonownershipofthefactorsofproductionwhilethelatterconcentrateontheplacewhereproductiontakesplace.2.Annualpercapitaincome$9386andaboveishighincomecountry.Below9386$andabove$765ismiddleincomecountry.Below$765islowincomecountry.3.Becausehighincomecountryoftenhavegoodinfrastructure,highpurchasingpower,advancedtechnology,efficientmanagement,andfavorableenvironmentfortradeandinvestment.Theyofferprimemarketsforexpensiveconsumergoodsandbothattractivesourcesanddestinationofinvestment.Butlowerincomecountriess...
