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)
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,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.
