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SAI INTERNATIONAL SCHOOL
CLASS-XI

Sub: Business Studies
Chapter 10: International Trade
Topic: Modes of Entry into International Business II (Licensing, Franchising

and wholly owned Subsidiaries)
(HOME ASSIGNMENT– 50)
ASSESSMENT MCQ:

1. In which of the following modes of entry, does the domestic manufacturer give the right to use
intellectual property such as patent and trademark to a manufacturer in a foreign country for a fee
(a) Licensing
(b) Contract manufacturing
(c) Joint venture
(d) None of these
2. Outsourcing a part of or entire production and concentrating on marketing operations in
international business is known as
(a) Licensing
(b) Franchising
(c) Contract manufacturing
(d) Joint venture
3. When two or more firms come together to create a new business entity that is legally separate
and distinct from its parents it is known as
(a) Contract manufacturing
(b) Franchising
(c) Joint ventures
(d) Licensing
4. Which of the following is not an advantage of exporting?
(a) Easier way to enter into international markets
(b) Comparatively lower risks
(c) Limited presence in foreign markets
(d) Less investment requirements
5. Which one of the following modes of entry requires higher level of risks?
(a) Licensing
(b) Franchising
(c) Contract manufacturing
(d) Joint venture

HOME ASSIGNMENT