BUSA 4000 EXAMINATION TEST 2026
COMPLETE QUESTIONS AND ANSWERS
◉ What are the four risks of international business? Answer:
Commercial risk, currency (financial) risk, cross-cultural risk, country
risk
◉ What is cross-cultural risk? Answer: cultural differences like
language, lifestyle, attitudes, and religion, negotiation patterns.
◉ What is currency risk? Answer: currency exposure, asset valuation,
foreign taxation, inflationary and transfer pricing.
◉ What is commercial risk? Answer: weak partner, operational
problems, timing of entry, competitive intensity, poor execution of
strategy
◉ What is country risk? Answer: Exposure to potential loss or adverse
effects on company operations and profitability caused by developments
in a country's political and/or legal environments.
◉ What is competitive advantage? Answer: Factors that allow a
company to produce goods or services better or more cheaply than its
rivals.
, ◉ What are the 3 strategic objectives? Answer: efficiency, flexibility,
learning
◉ Define efficiency Answer: lower the cost of the firm's operations and
activities on a global scale
◉ Define flexibility Answer: the agility to manage diverse country risks
and opportunities by tapping resources in individual countries
◉ Define learning Answer: develop the firms products, technologies,
capabilities, and skills by internalizing knowledge gained from
international ventures
◉ What is visionary leadership? Answer: A quality of senior
management that provides superior strategic guidance for managing
efficiency, flexibility, and learning
◉ What is global team? Answer: an internationally distributed group of
employees charged with a specific problem solving mandate that affects
the whole firm.
◉ What is global integration? Answer: Coordination of the firm's value-
chain activities across multiple countries to achieve worldwide
COMPLETE QUESTIONS AND ANSWERS
◉ What are the four risks of international business? Answer:
Commercial risk, currency (financial) risk, cross-cultural risk, country
risk
◉ What is cross-cultural risk? Answer: cultural differences like
language, lifestyle, attitudes, and religion, negotiation patterns.
◉ What is currency risk? Answer: currency exposure, asset valuation,
foreign taxation, inflationary and transfer pricing.
◉ What is commercial risk? Answer: weak partner, operational
problems, timing of entry, competitive intensity, poor execution of
strategy
◉ What is country risk? Answer: Exposure to potential loss or adverse
effects on company operations and profitability caused by developments
in a country's political and/or legal environments.
◉ What is competitive advantage? Answer: Factors that allow a
company to produce goods or services better or more cheaply than its
rivals.
, ◉ What are the 3 strategic objectives? Answer: efficiency, flexibility,
learning
◉ Define efficiency Answer: lower the cost of the firm's operations and
activities on a global scale
◉ Define flexibility Answer: the agility to manage diverse country risks
and opportunities by tapping resources in individual countries
◉ Define learning Answer: develop the firms products, technologies,
capabilities, and skills by internalizing knowledge gained from
international ventures
◉ What is visionary leadership? Answer: A quality of senior
management that provides superior strategic guidance for managing
efficiency, flexibility, and learning
◉ What is global team? Answer: an internationally distributed group of
employees charged with a specific problem solving mandate that affects
the whole firm.
◉ What is global integration? Answer: Coordination of the firm's value-
chain activities across multiple countries to achieve worldwide
