INTERNATIONAL BUSINESS THE NEW REALITIES
BY TAMER ACTUAL TEST PAPER 2026
COMPLETE QUESTIONS AND SOLUTIONS
GRADED A+
◉ International invesment. Answer: Transfer of assets to another
country or the acquisition of assets in that country
◉ International portfolio investment. Answer: Passive ownership of
foreign securities such as stocks and bonds for the purpose of
generating financial returns.
◉ Why International business (market diversification). Answer:
Foreign markets can extend the life of a product that has reached
maturity in its home market. Ex. ATMs installed in London
◉ Why International business (Higher margins and profits). Answer:
Less intense competition combine with strong market demands
complies that companies can command higher margins for their
offerings. Ex. Bathroom fixture manufacturers- American Standard
and Toto into VIM (Vietnam, Indonesia, and Mexico)
,◉ Why International business (New Ideas). Answer: Unique foreign
environments expose firms to products, processes, and business
methods. Ex. Japan's Toyota refine just in time inventory techniques
◉ Why International business (Customers have relocated abroad).
Answer: Many firms internationalize to better serve clients that
move into foreign markets. Ex. Nissan open factory in UK, Japanese
auto part suppliers followed
◉ Cross-cultural risk. Answer: A situation or event where a cultural
misunderstanding puts some human value at stake.
◉ Country Risk. Answer: Exposure to potential loss or adverse
effects on company operations and profitability caused by
developments in a country's political and/or legal environments.
◉ Commercial Risk. Answer: firm's potential loss or failure from
poorly developed or executed business strategies, tactics, or
procedures.
◉ Currency risk. Answer: potential harm that arises from changes in
the price of one currency relative to another
◉ Multinational enterprise (MNE). Answer: A large company with
substantial resources that performs various business activities
, through a network of subsidiaries and affiliates located in multiple
countries
◉ Small and medium-sized enterprise (SME). Answer: A company
with 500 or fewer employees
(as defined in Canada and the US)
◉ Dimensions of International Business. Answer: Globalization of
Markets
International trade
Foreign market entry strategies
Participants- firms, Gov'ts, facilitators, Intermediaries
International Business risks
International Investment
◉ First phase of globalization. Answer: Introduction of railroads and
ocean transport
◉ Second Phase of globalization. Answer: rise of electricity and steel
◉ Third phase of globalization. Answer: Formation of general
agreement on tariff and trade/GATT (currently known as WTO),
conclusion of WW2
BY TAMER ACTUAL TEST PAPER 2026
COMPLETE QUESTIONS AND SOLUTIONS
GRADED A+
◉ International invesment. Answer: Transfer of assets to another
country or the acquisition of assets in that country
◉ International portfolio investment. Answer: Passive ownership of
foreign securities such as stocks and bonds for the purpose of
generating financial returns.
◉ Why International business (market diversification). Answer:
Foreign markets can extend the life of a product that has reached
maturity in its home market. Ex. ATMs installed in London
◉ Why International business (Higher margins and profits). Answer:
Less intense competition combine with strong market demands
complies that companies can command higher margins for their
offerings. Ex. Bathroom fixture manufacturers- American Standard
and Toto into VIM (Vietnam, Indonesia, and Mexico)
,◉ Why International business (New Ideas). Answer: Unique foreign
environments expose firms to products, processes, and business
methods. Ex. Japan's Toyota refine just in time inventory techniques
◉ Why International business (Customers have relocated abroad).
Answer: Many firms internationalize to better serve clients that
move into foreign markets. Ex. Nissan open factory in UK, Japanese
auto part suppliers followed
◉ Cross-cultural risk. Answer: A situation or event where a cultural
misunderstanding puts some human value at stake.
◉ Country Risk. Answer: Exposure to potential loss or adverse
effects on company operations and profitability caused by
developments in a country's political and/or legal environments.
◉ Commercial Risk. Answer: firm's potential loss or failure from
poorly developed or executed business strategies, tactics, or
procedures.
◉ Currency risk. Answer: potential harm that arises from changes in
the price of one currency relative to another
◉ Multinational enterprise (MNE). Answer: A large company with
substantial resources that performs various business activities
, through a network of subsidiaries and affiliates located in multiple
countries
◉ Small and medium-sized enterprise (SME). Answer: A company
with 500 or fewer employees
(as defined in Canada and the US)
◉ Dimensions of International Business. Answer: Globalization of
Markets
International trade
Foreign market entry strategies
Participants- firms, Gov'ts, facilitators, Intermediaries
International Business risks
International Investment
◉ First phase of globalization. Answer: Introduction of railroads and
ocean transport
◉ Second Phase of globalization. Answer: rise of electricity and steel
◉ Third phase of globalization. Answer: Formation of general
agreement on tariff and trade/GATT (currently known as WTO),
conclusion of WW2
