Summary
International Business
Universiteit van Amsterdam
New 2025
Literature used:
A Basic Guide to International Business Law
International Business: Competing in the Global Marketplace
+ 65 common questions and answers
+ 50 multiple choice questions (NO answers)
+ 20 true/not true questions with answers
+ 50 most important core concepts to know alphabetically
+ New specific literature references that may be useful
+ 10 trends and development 2025 and onward
+ New laws and regulations regarding International Business 2025 and onward
+ Specific subject you need to know for the exam (brief)
,
,
,
,65 common test questions with answers (NEW 2025)
Chapter 1: Introduction to International Business
1. Q: What is international business?
A: International business refers to the commercial transactions that occur
between parties in different countries, involving goods, services, or
resources.
2. Q: What are the main drivers of globalization?
A: Technological advancements, trade liberalization, improved
communication, and international agreements are the main drivers of
globalization.
3. Q: Define multinational corporation (MNC).
A: An MNC is a company that operates in multiple countries, managing
production or delivering services in at least one country other than its
home country.
4. Q: What are the main types of international business transactions?
A: The main types are trade (exporting and importing), licensing,
franchising, foreign direct investment (FDI), and joint ventures.
5. Q: Why do businesses engage in international trade?
A: To access new markets, reduce production costs, diversify risk, and
gain a competitive edge.
Chapter 2: International Trade and Investment
6. Q: What is free trade?
A: Free trade is the practice of removing barriers such as tariffs and
quotas to allow goods and services to flow freely across borders.
7. Q: What is the role of the World Trade Organization (WTO)?
A: The WTO regulates international trade, ensuring that trade flows
smoothly, predictably, and freely through the enforcement of international
trade agreements.
8. Q: What is foreign direct investment (FDI)?
A: FDI refers to a company investing in and owning assets or businesses
in a foreign country.
, 9. Q: What is the difference between horizontal and vertical FDI?
A: Horizontal FDI involves the same type of business activities in
different countries, while vertical FDI involves different stages of
production in different countries.
10.Q: What is a trade barrier?
A: A trade barrier is a restriction imposed by a country on the flow of
goods or services from other countries, such as tariffs, quotas, or
subsidies.
Chapter 3: International Business Law and Its Framework
11.Q: What is international business law?
A: International business law is the body of law that governs business
transactions between entities from different countries, including trade
regulations, investment rules, and dispute resolution.
12.Q: What is a bilateral investment treaty (BIT)?
A: A BIT is an agreement between two countries that provides protection
and promotion for investments made by investors from each country in
the other country.
13.Q: What is the principle of sovereign immunity in international law?
A: Sovereign immunity protects a state from being sued in foreign courts
without its consent.
14.Q: What are the sources of international business law?
A: The sources include international treaties, conventions, customary
international law, judicial decisions, and legal writings.
15.Q: How do international business laws affect the operations of
multinational corporations?
A: International business laws set the legal framework for MNCs,
affecting how they operate, invest, and resolve disputes across borders.
Chapter 4: Trade and Economic Organizations
16.Q: What is the International Monetary Fund (IMF)?
A: The IMF is an international organization that aims to promote global
monetary cooperation, secure financial stability, facilitate international
trade, and reduce poverty.
International Business
Universiteit van Amsterdam
New 2025
Literature used:
A Basic Guide to International Business Law
International Business: Competing in the Global Marketplace
+ 65 common questions and answers
+ 50 multiple choice questions (NO answers)
+ 20 true/not true questions with answers
+ 50 most important core concepts to know alphabetically
+ New specific literature references that may be useful
+ 10 trends and development 2025 and onward
+ New laws and regulations regarding International Business 2025 and onward
+ Specific subject you need to know for the exam (brief)
,
,
,
,65 common test questions with answers (NEW 2025)
Chapter 1: Introduction to International Business
1. Q: What is international business?
A: International business refers to the commercial transactions that occur
between parties in different countries, involving goods, services, or
resources.
2. Q: What are the main drivers of globalization?
A: Technological advancements, trade liberalization, improved
communication, and international agreements are the main drivers of
globalization.
3. Q: Define multinational corporation (MNC).
A: An MNC is a company that operates in multiple countries, managing
production or delivering services in at least one country other than its
home country.
4. Q: What are the main types of international business transactions?
A: The main types are trade (exporting and importing), licensing,
franchising, foreign direct investment (FDI), and joint ventures.
5. Q: Why do businesses engage in international trade?
A: To access new markets, reduce production costs, diversify risk, and
gain a competitive edge.
Chapter 2: International Trade and Investment
6. Q: What is free trade?
A: Free trade is the practice of removing barriers such as tariffs and
quotas to allow goods and services to flow freely across borders.
7. Q: What is the role of the World Trade Organization (WTO)?
A: The WTO regulates international trade, ensuring that trade flows
smoothly, predictably, and freely through the enforcement of international
trade agreements.
8. Q: What is foreign direct investment (FDI)?
A: FDI refers to a company investing in and owning assets or businesses
in a foreign country.
, 9. Q: What is the difference between horizontal and vertical FDI?
A: Horizontal FDI involves the same type of business activities in
different countries, while vertical FDI involves different stages of
production in different countries.
10.Q: What is a trade barrier?
A: A trade barrier is a restriction imposed by a country on the flow of
goods or services from other countries, such as tariffs, quotas, or
subsidies.
Chapter 3: International Business Law and Its Framework
11.Q: What is international business law?
A: International business law is the body of law that governs business
transactions between entities from different countries, including trade
regulations, investment rules, and dispute resolution.
12.Q: What is a bilateral investment treaty (BIT)?
A: A BIT is an agreement between two countries that provides protection
and promotion for investments made by investors from each country in
the other country.
13.Q: What is the principle of sovereign immunity in international law?
A: Sovereign immunity protects a state from being sued in foreign courts
without its consent.
14.Q: What are the sources of international business law?
A: The sources include international treaties, conventions, customary
international law, judicial decisions, and legal writings.
15.Q: How do international business laws affect the operations of
multinational corporations?
A: International business laws set the legal framework for MNCs,
affecting how they operate, invest, and resolve disputes across borders.
Chapter 4: Trade and Economic Organizations
16.Q: What is the International Monetary Fund (IMF)?
A: The IMF is an international organization that aims to promote global
monetary cooperation, secure financial stability, facilitate international
trade, and reduce poverty.
