MAN 3600 Exam 1
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1. International Performance of trade and investment activities by firms across national boarders
Business
2. Globalization of Ongoing economic integration and growing interdependency of countries world-
Markets wide
3. International Exchange of products and services across national borders, typically through
Trade exporting and importing
4. Exporting Sale of products or services from a base in the home country or a third country to
customers located abroad
5. Importing or Procurement of products or services from suppliers located abroad for consump-
Global Sourcing tion in the home country or a third country
6. International In- Transfer of assets to another country or the acquisition of assets in that country
vestment AKA- Foreign Direct Investments
7. International Passive ownership of foreign securities, such as stocks and bonds, order to gen-
Portfolio erate financial returns
Investment
8. International -conducted across national boarders
Business (How it -uses distinctive business methods
Differs from -in contact with countries that differ in terms of culture, language, political system,
Domestic legal system, economic situation, infrastructure, and other factors
Business) -Firms encounter four major types of risk when they venture abroad
9. Four Major Types -Cross-Cultural Risk
of Risk -Country Risk
-Currency (Financial) Risk
-Commercial Risk
10.
, MAN 3600 Exam 1
Study online at https://quizlet.com/_1yfnef
Cross-Cultural -Cultural differences
Risk -Negotiation patterns
-Decision-making styles
-Ethical practices
11. Country Risk -Harmful or unstable political system
-Laws and regulations unfavorable in foreign firm
-Inadequate or underdeveloped legal system
-Bureaucracy and red tape
-Corruption and other ethical blunders
-Government intervention, protectionism, and barriers to trade and investment
-Mismanagement or failure of the national economy
12. Currency (Finan- -Currency exposure
cial) Risk -Asset valuation
-Foreign taxation
-Inflationary and transfer pricing
13. Commercial Risk -Weak partner
-Operational problems
-Timing of entry
-Competitive intensity
-Poor execution of strategy
14. Cultural Differ- Risks arise from differences in language, lifestyle, attitudes, customs, and religion,
ences (Cross-Cul- where a cultural miscommunication jeopardizes a culturally valued mindset or
tural Risk) behavior
15. Negotiation Pat- Negotiations are required in many types of business transactions
terns (Cross-Cul- Ex.) Mexicans are friendly and emphasize social relations, whereas Americans are
tural Risk) assertive and get down to business quickly
16.
Study online at https://quizlet.com/_1yfnef
1. International Performance of trade and investment activities by firms across national boarders
Business
2. Globalization of Ongoing economic integration and growing interdependency of countries world-
Markets wide
3. International Exchange of products and services across national borders, typically through
Trade exporting and importing
4. Exporting Sale of products or services from a base in the home country or a third country to
customers located abroad
5. Importing or Procurement of products or services from suppliers located abroad for consump-
Global Sourcing tion in the home country or a third country
6. International In- Transfer of assets to another country or the acquisition of assets in that country
vestment AKA- Foreign Direct Investments
7. International Passive ownership of foreign securities, such as stocks and bonds, order to gen-
Portfolio erate financial returns
Investment
8. International -conducted across national boarders
Business (How it -uses distinctive business methods
Differs from -in contact with countries that differ in terms of culture, language, political system,
Domestic legal system, economic situation, infrastructure, and other factors
Business) -Firms encounter four major types of risk when they venture abroad
9. Four Major Types -Cross-Cultural Risk
of Risk -Country Risk
-Currency (Financial) Risk
-Commercial Risk
10.
, MAN 3600 Exam 1
Study online at https://quizlet.com/_1yfnef
Cross-Cultural -Cultural differences
Risk -Negotiation patterns
-Decision-making styles
-Ethical practices
11. Country Risk -Harmful or unstable political system
-Laws and regulations unfavorable in foreign firm
-Inadequate or underdeveloped legal system
-Bureaucracy and red tape
-Corruption and other ethical blunders
-Government intervention, protectionism, and barriers to trade and investment
-Mismanagement or failure of the national economy
12. Currency (Finan- -Currency exposure
cial) Risk -Asset valuation
-Foreign taxation
-Inflationary and transfer pricing
13. Commercial Risk -Weak partner
-Operational problems
-Timing of entry
-Competitive intensity
-Poor execution of strategy
14. Cultural Differ- Risks arise from differences in language, lifestyle, attitudes, customs, and religion,
ences (Cross-Cul- where a cultural miscommunication jeopardizes a culturally valued mindset or
tural Risk) behavior
15. Negotiation Pat- Negotiations are required in many types of business transactions
terns (Cross-Cul- Ex.) Mexicans are friendly and emphasize social relations, whereas Americans are
tural Risk) assertive and get down to business quickly
16.
