True or False.

1. Once there is an increase in revenues in a certain business in a country, there are always
growth opportunities. ---TRUE
2. It is no longer a setback, if a country focuses only on domestic market as this would not
affect its sales. ---FALSE
3. An exporters may have benefit from currency exchange rate as they are able to export
more. ---TRUE
4. Surplus of goods can easily be disposed in international trade. ---FALSE
5. A certain country may increase potential risks in its core market when it is less dependent.
---FALSE
6. “Think global, act global “is a must for a country engaged in outsourcing. ---TRUE
7. A minimum special purpose machinery and skill labor are usually tapped in a very large
companies. ---TRUE
8. Letters of credits greatly help both the exporters and importers in international trade and
business. ---TRUE
9. Success in one country cannot influence success in other adjacent countries. ---TRUE
10. Consumers’ tastes and preferences oftently are not increasingly uniform worldwide.
---TRUE
11. Apple is the example of international business that produces consumer electronics.
---TRUE
12. International business refers to those business activities within the geographical limits of a
country. ---FALSE
13. The size of an international business should be limit enough to accommodate the impact
on the foreign economics. ---TRUE
14. Language barriers and cultural differences may be considered disadvantages in
international trade. ---TRUE
15. Global GDP has experienced a growth every year over the past decade with the exception
of 2010 global financial crisis. ---FALSE
16. International banking allows the business to make international bill payments. ---TRUE
17. Resilience and adaptability are threat to international trade and business. ---FALSE
18. It is of great help for the traders to have a global expansion partner for international
market success. ---TRUE
19. Increasingly companies are looking for graduates who can solve cross cultural PROBLEMS.
---TRUE
20. When people think of innovation, often they are thinking of product innovation only.
---TRUE

Essay Type. ( 10 points each )

1. In your own words how does international trade help the economy amid the emergence
of pandemic covid 19? Explain lengthily.

With the emergence of Covid19 important issues should be the first to resolve by
the international trade, like how will they operate continuously. Although it is challenging
 now since there are still no vaccine available globally. Trading is essential to save
businesses lives and the people’s livelihood. Despite the uncertainty, the only actions they
can do first is to be transparent. Improving transparency to the price of products in the
markets whether import/export is important to prevent the other company in taking
advantage of the situation.

Keeping the international trade supply chains ongoing is a big help whether they
only trade the essential products. More importantly, International Trade should look for
policy actions to avoid the worst case scenario that can happen during this time of
pandemic considering the risky factors to health. In this crisis International Trade should
be continuous, because doing more on trade can help the country to recover and support
their economy simultaneously.

2. How does globalization bring an increasing connectedness of business markets, people

and information across the countries? Discuss.

Globalization is the main reason why every single niche is connected. Due to
globalization every business markets, people, technology and even information across the
country are evolving and undergoing through an innovation & adaptation. With
globalization, cultures of every country are spreading which is being accessed by the
consumer/people globally. It is clearly that globalization creates a new culture uniformity.

Though it has become commonplace to say this, it is true that the world is getting
smaller. Through globalization, you can use a phone to reach someone instantly, no
matter how far across the globe that person is. You can use a variety of messenger apps
on your phone. You can access information and technology without hassle. You can get on
a plane and in a matter of hours you can reach halfway around the world. Globalization is
part of the shrinking world, bringing people together for common or competitive goals.

3. How does product diversification serve as an advantage and disadvantage in international

market? Discuss.

Product diversification can serve as an advantage as it can access to new

customers. Adding a new product or service or entering a new market segment offers the
opportunity for exponential growth and brand recognition. But at the same time, the
disadvantages of diversification include startup costs and the added overhead that will be
required to achieve increased sales goals.

If customers want your new product or service, the requirements to fulfill those
sales might strain your ability to operate, making the diversification unwise. You might
reduce productivity among employees who must now multitask. Also, diversifying into
new areas using the same brand name can confuse your customers or convince them you
are no longer a leader in your area because you don’t specialize.
 A diversification should be decided by the business entity wisely. As it can boost
the growth of the firm thereby leading it towards growth and productivity. However, it
can also prove to be a costly failure for certain entities. A detailed analysis of the potential
market must be conducted before undergoing for diversification