Pajarillaga, John Wences I.

3BSMA1
International Business and Trade
Review Questions:
1. What are the advantages of a proprietorship?
- Sole proprietorship has a lot of advantages, such as ease of formation, freedom in making
business decisions, you get to keep all the profits, and last is you have a business to call your
own.
2. What are the advantages of partnership?
- Just like sole proprietorship, one of the advantages of partnership is ease of formation.
Another advantage of partnership is more sources of funds and availability of different
talents.
3. What are the advantages of corporation?
- The advantages of corporation are: more sources of fund, fixed financial liability of the
owners, specialized management and unlimited life of the company.
4. Give an example of a municipal corporation, a nonprofit corporation, and a cooperative.
- Municipal Corporation: Cities, towns, and/or villages.
- Nonprofit Corporation: American Red Cross, Boy Scouts of America, and The Salvation
Army.
- Cooperative: Philippine Army Finance Center Producers Integrated Cooperative, PLDT
Employees Credit Cooperative.
5. What is the relationship between a home country and a host country?
- Home country and a host country will only have a relationship if there are businesses or
transactions that are happening between the two. A home country, is where the business
originally came from, while the host country, is where the business is residing aside from its
home country.
6. What kinds of competitive advantages can a multinational company have?
- Multinational companies have a wide scope of customers. Its main advantage is that, it is
popular because of its market engagements. It can also reach its target market easily, which is
good for business to secure profit maximization.
7. Why is management contracting a safe method for getting involved in inter- national
business?
- Management contracting is a method of acquisition in which the works are constructed by a
group of different temporary employees who are contracted to an administration temporary
worker. Because little assets are consumed and it does not include owing resources or having
control over sections of the organization, management contracting is a safe way to get
involved with international business.
8. What is the difference between licensing and franchising?
- Both franchises and licenses are business arrangements in which some parts of a brand are
shared in exchange for a price. A franchising deal, on the other hand, covers the complete
brand and operations of a company, whereas a license arrangement simply covers trademarks
that have been registered.