Review Questions1. What do we mean by the term “global business”? Global business includes all items/actions needed to be sold, created or shipped to other countries. Basically it is the business done through the world or other countries. is business throughout the world/other countries. It includes all the things/actions needed to sell, create, and ship out exports to other countries.2. Name two low-risk methods for getting involved in global business. Management control and licensing are two low-risk methods for getting involved in global business. Two low-risk methods are management control and licensing. 3. Why is management contracting a safe way to get involved in global business? Managing contracting is a safe way to get involved in global business because it does not involve owning assets or having control over parts of the business, nor are many resources being expended. It is a safe way to get involved in a global business because not very many resources are being expended as well as it is not involve owning assets/having control over parts of the business.4. What would be the result of war on the importing and exporting activities of the nations involved? Disrupted trade relations and impact trading with other countries that are not involved in the war/conflict would be the result of war in the importing and exporting activities of nations involved. The result of war of the nations involved would be disrupted trade relations as well as impact trading with other countries that are not involved in the war/conflict.Critical Thinking Questions1. Why do companies frequently expand their business operations into other countries? Companies frequently expand their business operations into other countries because it will save the companies money, for example, labor is much cheaper in other countries and technology is huge. Expanding would expand the basis of which your company is known, other parts of the works would hear your name and being local to different parts of the world tends to help a company become more popular and beats out the competing businesses. The demand for something in another country may be higher than the demand for something in your country as well so it would be good to sell it elsewhere.2. What are the benefits of doing business in other countries? Benefits of doing business in other countries include being able save money on labor wages, allowing more growth, and saving money using the materials in a country instead of having to ship the country to your factory. Technology allows doing businesses in other countries more cost effective and time effective. 3. What are the drawbacks of doing business in other countries? There are many drawbacks such as competition from surrounding markets and countries, risk of exploitation, difference in legal structure, and cultural risk. There are many more advantages but as it is said, “there is no risk without reward.” There are risks of losing a significant amount of money, becoming bankrupt, losing your business, and not make quite as much money as you potentially could have in the first place. 4. How are you affected by international business?At this moment, it is mostly my staple supplies that I live off of and the things I don’t necessarily need, but use, like my phone. International business doesn’t affect me directly as much on the business side but it affects our economy and can change how things are in the United States. This can also decide prices and such for things like gas, food, housing, land, and much, much more5. What factors affect a country’s decision to trade goods and services with another country?Factors that affect a country’s decision to interact with other countries may be the profit that is gained to both countries, how t may affect the individual country and their economy. War ally and enemy possibilities May also weigh a concern on the thought of working with other countries, they need good allies but not so many enemies. War may not be likely, but it is definitely a possibility.