KIM EXAM 1 MAN 3600
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1. The Nature of In- - all value-adding activities (including sourcing, manufacturing, and marketing )
ternational Busi- can be performed in international locations.
ness
2. What can inter- Products, services, capital, technology, know-how, and labor.
national trade in-
volve?
3. How do firms in- through various entry strategies, such as exporting and foreign direct investment
ternationalize? (FDI)
4. Dimensions of - Globalization of markets
International - International Trade
Business - International Investment
- International Business risks
- Participants (firms, intermediaries, facilitators, governments)
- Foreign Market Entry Strategies
5. International Performance of trade and investment activities by firms across national borders
Business (MNE or MNC)
6. Globalization of ongoing economic integration and growing interdependency of countries world-
Markets wide
7. International Exchange of products and services across national borders, typically through
Trade exporting and importing
8. exporting Sale of products or services to customers located abroad
9. Importing (or procurement (to obtain) of products or services from suppliers located abroad for
global sourcing) consumption in the home country or a third country
10. International in-
vestment
, KIM EXAM 1 MAN 3600
Study online at https://quizlet.com/_hz7s3f
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
11. International passive ownership of foreign securities such as stocks and bonds for the purpose
Portfolio of generating financial returns
investment
12. Leading coun- 1. China
tries in interna- 2. US
tional *merchan- 3. Germany
dise trade* by to- 4. Japan
tal annual value 5. France
in $billions
13. Leading coun- 1. Belgium
tries in interna- 2. Netherlands
tional *merchan- 3. South Korea
dise trade* by % 4. Germany
of GDP 5. Canada
14. Leading coun- 1. US
tries in inter- 2. China
national *service 3. Germany
trade* by total 4. UK
annual value in 5. France
$billions
15. Leading coun- 1. Ireland
tries in inter- 2. Singapore
national *service 3. Hong Kong (China)
trade* by % of 4. Denmark
GDP 5. Netherlands
, KIM EXAM 1 MAN 3600
Study online at https://quizlet.com/_hz7s3f
16. Types of IB risks - cross-cultural risks
- 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.)
17. Cross-Cultural Cultural Differences: Risk arising from differences in language, lifestyle, attitudes,
risks customs, and religion, where a cultural miscommunication jeopardizes a cultur-
ally-valued mindset or behavior.
Negotiation Patterns: Negotiations are required in many types of business trans-
actions.
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.
18. Country (politi- - government intervention, protectionism, and barriers to trade and investment
cal) risks - bureaucracy, red tape, administrative delays, corruption
- lack of legal safeguards for intellectual property rights
- legislation unfavorable to foreign firms
- economic failures and mismanagement
- social and political unrest and instability
19. Currency (finan- - Currency exposure: general risk of unfavorable exchange rate fluctuations
cial) risks - Asset valuation: risk that exchange rate fluctuations will adversely affect the value
of the firm's assets and liabilities.
- Foreign taxation: income, sales, and other taxes vary widely worldwide, with
Study online at https://quizlet.com/_hz7s3f
1. The Nature of In- - all value-adding activities (including sourcing, manufacturing, and marketing )
ternational Busi- can be performed in international locations.
ness
2. What can inter- Products, services, capital, technology, know-how, and labor.
national trade in-
volve?
3. How do firms in- through various entry strategies, such as exporting and foreign direct investment
ternationalize? (FDI)
4. Dimensions of - Globalization of markets
International - International Trade
Business - International Investment
- International Business risks
- Participants (firms, intermediaries, facilitators, governments)
- Foreign Market Entry Strategies
5. International Performance of trade and investment activities by firms across national borders
Business (MNE or MNC)
6. Globalization of ongoing economic integration and growing interdependency of countries world-
Markets wide
7. International Exchange of products and services across national borders, typically through
Trade exporting and importing
8. exporting Sale of products or services to customers located abroad
9. Importing (or procurement (to obtain) of products or services from suppliers located abroad for
global sourcing) consumption in the home country or a third country
10. International in-
vestment
, KIM EXAM 1 MAN 3600
Study online at https://quizlet.com/_hz7s3f
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
11. International passive ownership of foreign securities such as stocks and bonds for the purpose
Portfolio of generating financial returns
investment
12. Leading coun- 1. China
tries in interna- 2. US
tional *merchan- 3. Germany
dise trade* by to- 4. Japan
tal annual value 5. France
in $billions
13. Leading coun- 1. Belgium
tries in interna- 2. Netherlands
tional *merchan- 3. South Korea
dise trade* by % 4. Germany
of GDP 5. Canada
14. Leading coun- 1. US
tries in inter- 2. China
national *service 3. Germany
trade* by total 4. UK
annual value in 5. France
$billions
15. Leading coun- 1. Ireland
tries in inter- 2. Singapore
national *service 3. Hong Kong (China)
trade* by % of 4. Denmark
GDP 5. Netherlands
, KIM EXAM 1 MAN 3600
Study online at https://quizlet.com/_hz7s3f
16. Types of IB risks - cross-cultural risks
- 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.)
17. Cross-Cultural Cultural Differences: Risk arising from differences in language, lifestyle, attitudes,
risks customs, and religion, where a cultural miscommunication jeopardizes a cultur-
ally-valued mindset or behavior.
Negotiation Patterns: Negotiations are required in many types of business trans-
actions.
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.
18. Country (politi- - government intervention, protectionism, and barriers to trade and investment
cal) risks - bureaucracy, red tape, administrative delays, corruption
- lack of legal safeguards for intellectual property rights
- legislation unfavorable to foreign firms
- economic failures and mismanagement
- social and political unrest and instability
19. Currency (finan- - Currency exposure: general risk of unfavorable exchange rate fluctuations
cial) risks - Asset valuation: risk that exchange rate fluctuations will adversely affect the value
of the firm's assets and liabilities.
- Foreign taxation: income, sales, and other taxes vary widely worldwide, with
