BUSMHR 2000 OSU EXAM 1 QUESTIONS
AND ANSWERS. VERIFIED 2025/2026.
International business - ANS Performance of trade and investment activities by firms across
national borders.
Globalization of markets - ANS Ongoing economic integration and growing interdependency
of countries worldwide.
International trade - ANS exchange of products and services across national borders; typically
through exporting and importing.
Exporting - ANS •Sale of products or services to customers located abroad, from a base in the
home country or a third country. Boeing and Airbus export billions in commercial aircraft every
year.
Importing or global sourcing - ANS Procurement of products or services from suppliers
located abroad for consumption in the home country or a third country. Toyota imports many
parts from China when it manufactures cars in Japan.
International investment - ANS Transfer of assets to another country or the acquisition of
assets in that country. Also known as "foreign direct investment" (FDI), we will focus on this
type of investment.
International portfolio investment - ANS Passive ownership of foreign securities such as
stocks and bonds, in order to generate financial returns.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Cultural Differences - ANS Risk arising from differences in language, lifestyle, attitudes,
customs, and religion, where a cultural miscommunication jeopardizes a culturally-valued
mindset or behavior.
Negotiation Patterns - ANS Negotiations are required in many types of business transactions.
E.g., where Mexicans are friendly and emphasize social relations, Americans are assertive and
get down to business quickly.
Decision-Making Styles - ANS Managers make decisions continually on the operations and
future direction of the firm. For example, Japanese take considerable time to make important
decisions. Canadians tend to be decisive, and "shoot from the hip".
Ethical Practices - ANS Standards of right and wrong vary considerably around the world. For
example, bribery is relatively accepted in some countries in Africa, but is generally unacceptable
in Sweden
Multinational enterprise (MNE) - ANS A large company with substantial resources that
performs various business activities through a network of subsidiaries and affiliates located in
multiple countries (e.g., Caterpillar, Samsung, Unilever, Vodafone, Disney).
Small and medium-sized enterprise (SME) - ANS Typically, companies with 500 or fewer
employees, comprising over 90% of all firms in most countries. S M E s increasingly engage in
international business
Born global firm - ANS A young, entrepreneurial S M E that undertakes substantial
international business at or near its founding
Non-governmental organizations - ANS •Many of these non-profit organizations conduct
cross-border activities. They pursue special causes and serve as advocates for social issues,
education, politics, and research.
Value chain - ANS The sequence of value-adding activities performed by the firm in the
process of developing, producing, and marketing a product or a service
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
AND ANSWERS. VERIFIED 2025/2026.
International business - ANS Performance of trade and investment activities by firms across
national borders.
Globalization of markets - ANS Ongoing economic integration and growing interdependency
of countries worldwide.
International trade - ANS exchange of products and services across national borders; typically
through exporting and importing.
Exporting - ANS •Sale of products or services to customers located abroad, from a base in the
home country or a third country. Boeing and Airbus export billions in commercial aircraft every
year.
Importing or global sourcing - ANS Procurement of products or services from suppliers
located abroad for consumption in the home country or a third country. Toyota imports many
parts from China when it manufactures cars in Japan.
International investment - ANS Transfer of assets to another country or the acquisition of
assets in that country. Also known as "foreign direct investment" (FDI), we will focus on this
type of investment.
International portfolio investment - ANS Passive ownership of foreign securities such as
stocks and bonds, in order to generate financial returns.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Cultural Differences - ANS Risk arising from differences in language, lifestyle, attitudes,
customs, and religion, where a cultural miscommunication jeopardizes a culturally-valued
mindset or behavior.
Negotiation Patterns - ANS Negotiations are required in many types of business transactions.
E.g., where Mexicans are friendly and emphasize social relations, Americans are assertive and
get down to business quickly.
Decision-Making Styles - ANS Managers make decisions continually on the operations and
future direction of the firm. For example, Japanese take considerable time to make important
decisions. Canadians tend to be decisive, and "shoot from the hip".
Ethical Practices - ANS Standards of right and wrong vary considerably around the world. For
example, bribery is relatively accepted in some countries in Africa, but is generally unacceptable
in Sweden
Multinational enterprise (MNE) - ANS A large company with substantial resources that
performs various business activities through a network of subsidiaries and affiliates located in
multiple countries (e.g., Caterpillar, Samsung, Unilever, Vodafone, Disney).
Small and medium-sized enterprise (SME) - ANS Typically, companies with 500 or fewer
employees, comprising over 90% of all firms in most countries. S M E s increasingly engage in
international business
Born global firm - ANS A young, entrepreneurial S M E that undertakes substantial
international business at or near its founding
Non-governmental organizations - ANS •Many of these non-profit organizations conduct
cross-border activities. They pursue special causes and serve as advocates for social issues,
education, politics, and research.
Value chain - ANS The sequence of value-adding activities performed by the firm in the
process of developing, producing, and marketing a product or a service
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
