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KIM EXAM 1 MAN 3600 QUESTIONS AND
ANSWERS 2025
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
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International Business - correct answer- Performance of trade
and investment activities by firms across national borders
(MNE or MNC)
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
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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
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
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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
- 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.
KIM EXAM 1 MAN 3600 QUESTIONS AND
ANSWERS 2025
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
,2 | Page
International Business - correct answer- Performance of trade
and investment activities by firms across national borders
(MNE or MNC)
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
,3 | Page
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
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
, 4 | Page
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
- 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.
