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KIM EXAM 1 MAN 3600 | NEW ACTUAL EXAM
QUESTIONS AND VERIFIED ANSWERS
The Nature of International Business - correct-answer-- all value-adding activities
(including sourcing, manufacturing, and marketing ) can be performed in
international locations.
What can international trade involve? - correct-answer-Products, services, capital,
technology, know-how, and labor.
How do firms internationalize? - correct-answer-through various entry strategies,
such as exporting and foreign direct investment (FDI)
Dimensions of International Business - correct-answer-- Globalization of markets
- International Trade
- International Investment
- International Business risks
- Participants (firms, intermediaries, facilitators, governments)
- Foreign Market Entry Strategies
International Business - correct-answer-Performance of trade and investment
activities by firms across national borders
(MNE or MNC)
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Globalization of Markets - correct-answer-ongoing economic integration and
growing interdependency of countries worldwide
International Trade - correct-answer-Exchange of products and services across
national borders, typically through exporting and importing
exporting - correct-answer-Sale of products or services to customers located
abroad
Importing (or global sourcing) - correct-answer-procurement (to obtain) of
products or services from suppliers located abroad for consumption in the home
country or a third country
International investment - correct-answer-The 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 - correct-answer-passive ownership of foreign
securities such as stocks and bonds for the purpose of generating financial returns
Leading countries in international *merchandise trade* by total annual value in
$billions - correct-answer-1. China
2. US
3. Germany
4. Japan
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5. France
Leading countries in international *merchandise trade* by % of GDP - correct-
answer-1. Belgium
2. Netherlands
3. South Korea
4. Germany
5. Canada
Leading countries in international *service trade* by total annual value in $billions
- correct-answer-1. US
2. China
3. Germany
4. UK
5. France
Leading countries in international *service trade* by % of GDP - correct-answer-1.
Ireland
2. Singapore
3. Hong Kong (China)
4. Denmark
5. Netherlands
Types of IB risks - correct-answer-- cross-cultural risks
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- country risks
- currency risks
- commercial risks
(always present but manageable; managers need to understand, anticipate, and
take proactive action to reduce their effects; some risks are extremely
challenging.)
Cross-Cultural risks - correct-answer-Cultural Differences: Risk arising from
differences in language, lifestyle, attitudes, customs, and religion, where a cultural
miscommunication jeopardizes a culturally-valued mindset or behavior.
Negotiation Patterns: Negotiations are required in many types of business
transactions.
Decision-Making styles: managers make decisions continually on the operations
and future direction of the firm
Ethical Practices: standards of right and wrong vary considerably around the
world.
Country (political) risks - correct-answer-- government intervention,
protectionism, and barriers to trade and investment
- bureaucracy, red tape, administrative delays, corruption
- lack of legal safeguards for intellectual property rights
KIM EXAM 1 MAN 3600 | NEW ACTUAL EXAM
QUESTIONS AND VERIFIED ANSWERS
The Nature of International Business - correct-answer-- all value-adding activities
(including sourcing, manufacturing, and marketing ) can be performed in
international locations.
What can international trade involve? - correct-answer-Products, services, capital,
technology, know-how, and labor.
How do firms internationalize? - correct-answer-through various entry strategies,
such as exporting and foreign direct investment (FDI)
Dimensions of International Business - correct-answer-- Globalization of markets
- International Trade
- International Investment
- International Business risks
- Participants (firms, intermediaries, facilitators, governments)
- Foreign Market Entry Strategies
International Business - correct-answer-Performance of trade and investment
activities by firms across national borders
(MNE or MNC)
,2|Page
Globalization of Markets - correct-answer-ongoing economic integration and
growing interdependency of countries worldwide
International Trade - correct-answer-Exchange of products and services across
national borders, typically through exporting and importing
exporting - correct-answer-Sale of products or services to customers located
abroad
Importing (or global sourcing) - correct-answer-procurement (to obtain) of
products or services from suppliers located abroad for consumption in the home
country or a third country
International investment - correct-answer-The 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 - correct-answer-passive ownership of foreign
securities such as stocks and bonds for the purpose of generating financial returns
Leading countries in international *merchandise trade* by total annual value in
$billions - correct-answer-1. China
2. US
3. Germany
4. Japan
,3|Page
5. France
Leading countries in international *merchandise trade* by % of GDP - correct-
answer-1. Belgium
2. Netherlands
3. South Korea
4. Germany
5. Canada
Leading countries in international *service trade* by total annual value in $billions
- correct-answer-1. US
2. China
3. Germany
4. UK
5. France
Leading countries in international *service trade* by % of GDP - correct-answer-1.
Ireland
2. Singapore
3. Hong Kong (China)
4. Denmark
5. Netherlands
Types of IB risks - correct-answer-- cross-cultural risks
, 4|Page
- country risks
- currency risks
- commercial risks
(always present but manageable; managers need to understand, anticipate, and
take proactive action to reduce their effects; some risks are extremely
challenging.)
Cross-Cultural risks - correct-answer-Cultural Differences: Risk arising from
differences in language, lifestyle, attitudes, customs, and religion, where a cultural
miscommunication jeopardizes a culturally-valued mindset or behavior.
Negotiation Patterns: Negotiations are required in many types of business
transactions.
Decision-Making styles: managers make decisions continually on the operations
and future direction of the firm
Ethical Practices: standards of right and wrong vary considerably around the
world.
Country (political) risks - correct-answer-- government intervention,
protectionism, and barriers to trade and investment
- bureaucracy, red tape, administrative delays, corruption
- lack of legal safeguards for intellectual property rights
