KIM EXAM 1 MAN 3600 QUESTIONS AND ANSWERS 2025
The Nature of International Business - (ANSWER)- all value-adding activities (including sourcing,
manufacturing, and marketing ) can be performed in international locations.
What can international trade involve? - (ANSWER)Products, services, capital, technology, know-how,
and labor.
How do firms internationalize? - (ANSWER)through various entry strategies, such as exporting and
foreign direct investment (FDI)
Dimensions of International Business - (ANSWER)- Globalization of markets
- International Trade
- International Investment
- International Business risks
- Participants (firms, intermediaries, facilitators, governments)
- Foreign Market Entry Strategies
International Business - (ANSWER)Performance of trade and investment activities by firms across
national borders
(MNE or MNC)
Globalization of Markets - (ANSWER)ongoing economic integration and growing interdependency of
countries worldwide
International Trade - (ANSWER)Exchange of products and services across national borders, typically
through exporting and importing
exporting - (ANSWER)Sale of products or services to customers located abroad
Importing (or global sourcing) - (ANSWER)procurement (to obtain) of products or services from suppliers
located abroad for consumption in the home country or a third country
,KIM EXAM 1 MAN 3600 QUESTIONS AND ANSWERS 2025
International investment - (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
International Portfolio investment - (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 - (ANSWER)1.
China
2. US
3. Germany
4. Japan
5. France
Leading countries in international *merchandise trade* by % of GDP - (ANSWER)1. Belgium
2. Netherlands
3. South Korea
4. Germany
5. Canada
Leading countries in international *service trade* by total annual value in $billions - (ANSWER)1. US
2. China
3. Germany
4. UK
5. France
Leading countries in international *service trade* by % of GDP - (ANSWER)1. Ireland
2. Singapore
, KIM EXAM 1 MAN 3600 QUESTIONS AND ANSWERS 2025
3. Hong Kong (China)
4. Denmark
5. Netherlands
Types of IB risks - (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 - (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.
Negotiation Patterns: Negotiations are required in many types of business transactions.
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.
Country (political) risks - (ANSWER)- 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
The Nature of International Business - (ANSWER)- all value-adding activities (including sourcing,
manufacturing, and marketing ) can be performed in international locations.
What can international trade involve? - (ANSWER)Products, services, capital, technology, know-how,
and labor.
How do firms internationalize? - (ANSWER)through various entry strategies, such as exporting and
foreign direct investment (FDI)
Dimensions of International Business - (ANSWER)- Globalization of markets
- International Trade
- International Investment
- International Business risks
- Participants (firms, intermediaries, facilitators, governments)
- Foreign Market Entry Strategies
International Business - (ANSWER)Performance of trade and investment activities by firms across
national borders
(MNE or MNC)
Globalization of Markets - (ANSWER)ongoing economic integration and growing interdependency of
countries worldwide
International Trade - (ANSWER)Exchange of products and services across national borders, typically
through exporting and importing
exporting - (ANSWER)Sale of products or services to customers located abroad
Importing (or global sourcing) - (ANSWER)procurement (to obtain) of products or services from suppliers
located abroad for consumption in the home country or a third country
,KIM EXAM 1 MAN 3600 QUESTIONS AND ANSWERS 2025
International investment - (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
International Portfolio investment - (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 - (ANSWER)1.
China
2. US
3. Germany
4. Japan
5. France
Leading countries in international *merchandise trade* by % of GDP - (ANSWER)1. Belgium
2. Netherlands
3. South Korea
4. Germany
5. Canada
Leading countries in international *service trade* by total annual value in $billions - (ANSWER)1. US
2. China
3. Germany
4. UK
5. France
Leading countries in international *service trade* by % of GDP - (ANSWER)1. Ireland
2. Singapore
, KIM EXAM 1 MAN 3600 QUESTIONS AND ANSWERS 2025
3. Hong Kong (China)
4. Denmark
5. Netherlands
Types of IB risks - (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 - (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.
Negotiation Patterns: Negotiations are required in many types of business transactions.
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.
Country (political) risks - (ANSWER)- 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
