2.1 Types of international business

amount of worth

The ________ that is added to a product as it is processed.

Foreign portfolio investments

________ are made because investors look for dividends.

-

Machinery and equipment

-

motor vehicles, and parts,

-

oil,

-

chemicals,

-

electricity,

-

consumer goods

Value added

The amount of worth that is added to a product as it is processed

importing

bringing products or Services into a country

Export

selling goods or services to another country

licensing agreement

a licensing agreement gives a company permission to use a product service brand name or patent in exchange for fee or royalty

Franchising

an agreement to use the company name service product and marketing

joint ventures

occurs when two businesses, one of which is usually located in a foreign country, forms a new company with shared ownership.

foreign subsidiaries

Often referred to as a “wholly-owned subsidiary of foreign subsidiary” it exists when a parent company allows a branch of its company in another country to be run as an independent entity

telecommunications equipment, chemicals, natural gas, electricity

Examples of Exports

Machinery and equipment, motor vehicles, and parts, oil, consumer goods.

Examples of Imports

money markets & Capital markets

Examples of Foreign portfolio investment