MAN 3600 EXAM 1 FSU KIM QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+
describe the nature of international business Ans✓✓✓• All value-adding
activities - including
sourcing, manufacturing, and
marketing - can be performed in
international locations.
• International trade can involve
products, services, capital,
technology, know-how, and labor.
• Firms internationalize through various
entry strategies, such as exporting
and foreign direct investment.
international business Ans✓✓✓Performance of trade and investment
activities by
firms across national borders.
globalization of markets Ans✓✓✓Ongoing economic integration and
growing
interdependency of countries
worldwide
,international trade Ans✓✓✓Exchange of products and services across
national borders; typically through exporting and importing.
exporting Ans✓✓✓Sale of products or services to customers located
abroad.
important or global sourcing Ans✓✓✓Procurement of products or
services from suppliers located abroad for consumption in the home
country or a
third country.
international investment Ans✓✓✓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 Ans✓✓✓Passive ownership of foreign
entities
through financial means such as stocks
and bonds in order to generate returns.
,Leading countries in international merchandise trade Ans✓✓✓China,
US, Germany
Leading countries in international service trade Ans✓✓✓Ireland,
Singapore, Hong Kong
cultural differences Ans✓✓✓Risk arising from differences in language,
lifestyle,
attitudes, customs, and religion, where a
cultural miscommunication jeopardizes a
culturally-valued mindset or behavior.
negotiation patterns Ans✓✓✓Negotiations are required in many types of
business
transactions.
decision-making styles Ans✓✓✓Managers make decisions continually
on the
operations and future direction of the
firm.
ethical practices Ans✓✓✓Standards of right and wrong vary
considerably around
the world. For example, bribery is
, relatively accepted in some countries in
Africa, but is generally unacceptable in
Sweden.
country (political) risk Ans✓✓✓Government intervention,
protectionism,
and barriers to trade and investment.
• 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.
currency (financial) risk Ans✓✓✓Currency exposure. General risk of
unfavorable exchange rate fluctuations.
• 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
implications for company performance
DETAILED ANSWERS (VERIFIED ANSWERS) ALREADY
GRADED A+
describe the nature of international business Ans✓✓✓• All value-adding
activities - including
sourcing, manufacturing, and
marketing - can be performed in
international locations.
• International trade can involve
products, services, capital,
technology, know-how, and labor.
• Firms internationalize through various
entry strategies, such as exporting
and foreign direct investment.
international business Ans✓✓✓Performance of trade and investment
activities by
firms across national borders.
globalization of markets Ans✓✓✓Ongoing economic integration and
growing
interdependency of countries
worldwide
,international trade Ans✓✓✓Exchange of products and services across
national borders; typically through exporting and importing.
exporting Ans✓✓✓Sale of products or services to customers located
abroad.
important or global sourcing Ans✓✓✓Procurement of products or
services from suppliers located abroad for consumption in the home
country or a
third country.
international investment Ans✓✓✓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 Ans✓✓✓Passive ownership of foreign
entities
through financial means such as stocks
and bonds in order to generate returns.
,Leading countries in international merchandise trade Ans✓✓✓China,
US, Germany
Leading countries in international service trade Ans✓✓✓Ireland,
Singapore, Hong Kong
cultural differences Ans✓✓✓Risk arising from differences in language,
lifestyle,
attitudes, customs, and religion, where a
cultural miscommunication jeopardizes a
culturally-valued mindset or behavior.
negotiation patterns Ans✓✓✓Negotiations are required in many types of
business
transactions.
decision-making styles Ans✓✓✓Managers make decisions continually
on the
operations and future direction of the
firm.
ethical practices Ans✓✓✓Standards of right and wrong vary
considerably around
the world. For example, bribery is
, relatively accepted in some countries in
Africa, but is generally unacceptable in
Sweden.
country (political) risk Ans✓✓✓Government intervention,
protectionism,
and barriers to trade and investment.
• 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.
currency (financial) risk Ans✓✓✓Currency exposure. General risk of
unfavorable exchange rate fluctuations.
• 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
implications for company performance
