【正文】 hed MNC, it is an affiliate MNC.4. Describe briefly the characteristics of MNEs.a. enormous sizeb. wide geographical spreadc. longevity and rapid growth5. What is the emonly recognized objective of MNEs?Like most business organizations, MNEs are formed for profit.6. Why is security so important to MNEs?Profit is useless if it cannot be secured by the MNE and transfeeed wherever it so desires.7. Do you think “wide geographical spread” of MNEs plays a very important role in the development of their business? Why?a. enables them have a wide range of options in terms of decisions in areas such as sourcing and pricing.b. More able to take advantage of changes in the international economic environment.c. Enable MNEs to engage in worldwide integrated production and marketing giving rise to extensive intraMNE transactions which constitute a very significant proportion of total international trade.8. What is the relationship between MNEs and their host countries?Host governments can and do wield power over MNCs located within their territories. MNCs are under the legal jurisdiction of their host governments which can impose various rules, regulations, and laws on the MNCs to the extent of nationalizing all their assets.9. What are the four types of multinational enterprises? Describe each of them briefly.a. multidomestic corporation that is a group of relatively independent subsidiaries.b. Global corporations which operates under an opposite principle from the first type and views the world market as an integrated whole.10. Are there many world panies at present? Imagine their future role in plete globalization?No, very few panies, if any, have reached this level of internationalization.When such panies bee dominating, the possiblility of conflicts among sovereign states may be greatly reduced. Possibly they will be instrumental to the realization of plete globalization. Revenue: the total annual ine of a state Decentralize: distribute the administrative powers over a less concentrated areaNationalize: to bring under the control or ownership of a nationInput: something that is put in business operationWelfare: wellbeingFramework: organization structureFacilities: something designed, built or installed to serve a specific function or perform a particular serviceAffiliate: a subsidiary pany controlled by anotherWorld pany: a multinational whose national identity has been blurredAssets: total resources of a business, as cash, accounts receivable, real estates etc.五、1. How would you define international trade?International trade can be defined as the exchange of godds and services produced in one country with those produced in another.2. Why did international trade first begin?In the plex economic world, no country can be pletely selfsufficient. The distribution of natural resources is uneven. Some countries are abundant in resources, while elsewhere reserves are scarce or even nonexistent. And a country may be rich in some resources but poor in others. That is the reason why international trade first begin.3. What is the new incentive for trade that arose with the development of manufacturing and technology?International specialization – one country producing more of a modity than it uses itself and selling the remainder to other countries.4. According to the theory of absolute advantage, trade occurs only when a country has an absolute advantage over another. Is that always true?No. Because in reality, it is not rare that one country has no absolute advantage in any modity.5. Who introduced the theory of parative advantage? Which theory makes more sense, absolute or parative advantage?David Ricardo.Comparative advantage.6. Explain briefly why trade to exploit parative advantage promotes efficiency among countries.Since it can make one country better off without making another worse off.7. Is parative advantage something static? Is it purely decided by the endowments of nature? Give examples to show the development of parative advantage by certain countries.Comparative advantage is not a static concept. A country may develop a particular parative advantage purely through its own actions, independent of the endowments of nature. Switzerland’s parative advantage in watchmaking is a typical example. Service: something done to help or benefit othersAboundant: plentiful, more than enoughSpecialization: to restrict one’s economic activities to certain particular fieldsPrimary modities: those modities not processed, or only slightly processed, usually farm produce or raw materialsIncentive: that which incites, rouses or encourages a personAlternative: that may be had, used etc. in place of sth elseIntuitive: relating to the power of the immediate understanding of something without reasoning or study.Efficient: producing a desired or satisfactory result。一、What does international business refer to? Please tell the difference between international business and domestic business.1. International business refers to transactions between parties from diffirent countries.There are four major diffrences between international business and domestic business:1) differences in legal system2) differences in currencies3) differences in cutural background4) differences in natural and economic conditionsPlease explain the differences between visible trade and invisible trade. Which is being more and more important and accounts for an increasing proportion in international trade?2. Commodity trade, exporting and importing goods produced or manufactured in one country for consumption or resale in another. This kind of trade is also referred to visible trade. Invisible trade is in the form of transportation,