INTERNATIONAL BUSINESS THE NEW REALITIES
BY TAMER FINAL PAPER 2026 TESTED
QUESTIONS WITH FULL SOLUTION GRADED
A+
◉ Globalization of markets. Answer: ongoing economic integration
and growing interdependency of countries worldwide
◉ International Trade. Answer: Exchange of products and services
across national borders, typically through exporting and importing.
◉ Exporting. Answer: The strategy of producing products or
services in one country (often the producer's home country), and
the selling and distributing them to customers located in other
countries
◉ Importing or global sourcing. Answer: procurement of products
or services from suppliers located abroad for consumption in the
home country or a third country
◉ International investment. Answer: The 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.
◉ Foreign direct investment (FDI). Answer: An internationalization
strategy in which the firm establishes a physical presence abroad
through acquisition of productive assets such as capital, technology,
labor, land, plant, and equipment
◉ 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.
◉ Currency risk. Answer: potential harm that arises from changes in
the price of one currency relative to another
◉ Commercial risk. Answer: firm's potential loss or failure from
poorly developed or executed business strategies, tactics, or
procedures.
,◉ Born global firm. Answer: a young entrepreneurial company that
initiates international business activity very early in its evolution,
moving rapidly into foreign markets.
◉ Offshoring and the Flight of Jobs:. Answer: Jobs are lost as firms
shift production of goods and services abroad in order to cut costs
and obtain other advantages. Firms benefit, but communities and
industries may be disrupted.
Firms benefit; individuals/industries detrimental from offshoring.
◉ Economic Freedom. Answer: Economic freedom is the extent of
government interference in business, strictness of the nation's
regulatory environment, and the ease with which economic activity
can be carried out
◉ Contagion. Answer: the tendency of a financial or monetary crisis
in one country to spread rapidly to other countries, due to the
ongoing integration of national economies.
Caused the global recession. Began in the U.S. and spread rapidly
because of globalization.
◉ Globalization of Markets. Answer: ongoing economic integration
and growing interdependency of countries worldwide.
, ◉ World Trade Organization. Answer: a multilateral governing body
empowered to regulate international trade and investment
◉ value chain. Answer: the sequence of value-adding activities
performed by the firm in the course of developing, producing,
marketing, and servicing of product.
◉ Distribution channel intermediary. Answer: is a specialist firm
that provides various logistics and marketing services for focal firms
as part of the international supply chain, both in the focal firm's
home country and abroad. Typical intermediaries are independent
distributors and sales representatives, usually located in foreign
markets where they provide distribution and marketing services to
focal firms on a contractual basis.
◉ Facilitator. Answer: is a firm or an individual with special
expertise in banking, legal advice, customs clearance, or related
support services that helps focal firms perform international
business transactions. Facilitators include logistics service
providers, freight forwarders, banks, and other support firms that
assist focal firms in performing specific functions. A freight
forwarder is a specialized logistics service provider that arranges
international shipping on behalf of exporting firms, much like a
travel agent for cargo. Facilitators are found in both the home
country and abroad.
BY TAMER FINAL PAPER 2026 TESTED
QUESTIONS WITH FULL SOLUTION GRADED
A+
◉ Globalization of markets. Answer: ongoing economic integration
and growing interdependency of countries worldwide
◉ International Trade. Answer: Exchange of products and services
across national borders, typically through exporting and importing.
◉ Exporting. Answer: The strategy of producing products or
services in one country (often the producer's home country), and
the selling and distributing them to customers located in other
countries
◉ Importing or global sourcing. Answer: procurement of products
or services from suppliers located abroad for consumption in the
home country or a third country
◉ International investment. Answer: The 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.
◉ Foreign direct investment (FDI). Answer: An internationalization
strategy in which the firm establishes a physical presence abroad
through acquisition of productive assets such as capital, technology,
labor, land, plant, and equipment
◉ 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.
◉ Currency risk. Answer: potential harm that arises from changes in
the price of one currency relative to another
◉ Commercial risk. Answer: firm's potential loss or failure from
poorly developed or executed business strategies, tactics, or
procedures.
,◉ Born global firm. Answer: a young entrepreneurial company that
initiates international business activity very early in its evolution,
moving rapidly into foreign markets.
◉ Offshoring and the Flight of Jobs:. Answer: Jobs are lost as firms
shift production of goods and services abroad in order to cut costs
and obtain other advantages. Firms benefit, but communities and
industries may be disrupted.
Firms benefit; individuals/industries detrimental from offshoring.
◉ Economic Freedom. Answer: Economic freedom is the extent of
government interference in business, strictness of the nation's
regulatory environment, and the ease with which economic activity
can be carried out
◉ Contagion. Answer: the tendency of a financial or monetary crisis
in one country to spread rapidly to other countries, due to the
ongoing integration of national economies.
Caused the global recession. Began in the U.S. and spread rapidly
because of globalization.
◉ Globalization of Markets. Answer: ongoing economic integration
and growing interdependency of countries worldwide.
, ◉ World Trade Organization. Answer: a multilateral governing body
empowered to regulate international trade and investment
◉ value chain. Answer: the sequence of value-adding activities
performed by the firm in the course of developing, producing,
marketing, and servicing of product.
◉ Distribution channel intermediary. Answer: is a specialist firm
that provides various logistics and marketing services for focal firms
as part of the international supply chain, both in the focal firm's
home country and abroad. Typical intermediaries are independent
distributors and sales representatives, usually located in foreign
markets where they provide distribution and marketing services to
focal firms on a contractual basis.
◉ Facilitator. Answer: is a firm or an individual with special
expertise in banking, legal advice, customs clearance, or related
support services that helps focal firms perform international
business transactions. Facilitators include logistics service
providers, freight forwarders, banks, and other support firms that
assist focal firms in performing specific functions. A freight
forwarder is a specialized logistics service provider that arranges
international shipping on behalf of exporting firms, much like a
travel agent for cargo. Facilitators are found in both the home
country and abroad.
