MAR 3600 Exam 1 || All Questions Answered Correctly.
International Business correct answers Performance of trade and investment activities by firms
across national borders
Globalization of Markets correct answers ongoing economic integration and growing
interdependency of countries worldwide
Exporting correct answers selling products to another country
Importing correct answers buying products from another country
international trade correct answers the exchange of goods and services among nations
International Investment correct answers The transfer of assets to another country or the
acquisition of assets in that country
Leading countries in international merchandise trade correct answers China, U.S., Germany,
Japan, France, U.K., South Korea, Netherlands, Canada, Belgium, Brazil
Leading countries in international service trade correct answers U.S, China, Germany, U.K.,
France, Japan, India, Netherlands, Singapore, Ireland, Hong Kong, Denmark
Cross-Cultural Risk correct answers -Risk arising from differences in language, lifestyle,
attitudes, customs and religion. Cultural miscommunication can jeopardize valued behavior.
-Negotiation patterns, Decision making styles, Ethical practices
Country Risk (Political) correct answers Gov't intervention, barriers to trade and investment,
political instability or security.
Currency Risk (Financial) correct answers Unfavorable exchange rate fluctuations, foreign
taxation, inflation
Commercial Risk correct answers firm's potential loss or failure from poorly developed or
executed business strategies, tactics, or procedures
IB Participants correct answers 1. Multinational enterprise (MNE) - large company with
substantial resources and network within multiple countries
2.Small and medium size enterprise (SME) - 500 or fewer employees compromising over 90% of
all firms
3. Born global firm: young entrepreneurial SME that undertakes substantial IB at or near its
establishment
4. Non governmental organizations: Non-profits that pursue special causes and serve as
advocates for social issues, education, politics or research
, Why firms participate in IB correct answers Seek opportunities for growth through market
diversification, earn higher margins and profits, gain new ideas, gain access to lower costs,
competition, relationships
Costs of IB correct answers Can increase the wealth of corporations and investors at the expense
of the poor and can cause other damage in societies. (wage rates)
Current U.S. Trade position correct answers Increasing Trade Deficit ( Imports are increasing
faster than exports)
- Deficits with Mexico, Japan, surplus with Canada
-Largest partner is China (deficit)
Culture correct answers Integrated system of learned behavior patterns that are characteristics of
members of a given society
Socialization correct answers the process of learning the rules of behavior of the culture within
which an individual is born and will live
Acculturation correct answers the process of adjusting and adapting to a culture other than one's
own
Culture is... correct answers 1. Not wrong or right, it is relative
2. Not about individual behavior (group)
3. Not inherited- derives from social environment
Values correct answers Represents a person's judgment about what is good and bad, acceptable,
important, and normal
Attitudes correct answers evaluations of people, objects, and ideas. Developed based on values
Culture as an Iceberg correct answers Only certain signs of a culture are shown; much deeper
underneath
-high: fine arts, literature
-Folk: humor, religion, cooking
-Deep: gender rules, nonverbal comm, beauty concepts
manners and customs correct answers ways of behaving and conducting oneself in public and
business situations
Space correct answers Reflects each cultures orientation about personal space and conversational
distance
TIme correct answers Dictates expectations about planning, scheduling and what constitutes
tardiness in arriving
Symbol (Aesthetics) correct answers Characters that communicate a meaning (flags, anthems)
