International Money and Business summary Questions and Answers 2023

What is the main difference between domestic and international business? - -The increased risk exposure of internationally operating companies (currency risk, country risk, cross cultural risk, commercial risk) -What are examples of cross-cultural risk? - -cultural differences different negotiation patterns different decision-making style ethical practices -What are examples of currency risk? - -inflation exchange rate foreign taxation -What are examples of commercial risk? - -weak partner timing of entry poor execution strategy -Who is mainly participating in international business? - -MNEs -What is the definition of MNEs - -Definition: A company that has its headquarter in one country and is operating in 2 or more, has substantial resources -What are the 4 key concepts in international business? - -1. international trade 2. international investment 3. international portfolio investment 4. foreign direct investment (FDI)