Suppose $A,B$ are sets, we have a good sense about $|A|,|B|$ which are the cardinality of these sets.
The arithmetics of cardinals is quite simple:
- $|A|+|B| = |(\{0\}\times A)\cup(\{1\}\times B)|$ (That is the disjoint union of $A$ and $B$)
- $|A|\cdot|B| = |A\times B|$
- $|A|^{|B|}=|\{f:B\to A\mid f\text{ is a function}\}|$
It is easy to see that these operations are well defined (that is, $|A|=|A'|$ and $|B|=|B'|$ then $|A|+|B|=|A'|+|B'|$ etc.) and it is also quite simple to see that the usual addition, multiplication and exponentiation correspond to the same operations (with the "exception" that $0^0=1$).
If $|B|=0$ then $B=\varnothing$ and we know that $A\times\varnothing=\varnothing$, for every set $A$. Therefore $\kappa\cdot 0=0$.
As for your second question, assuming the axiom of choice holds, every two cardinalities are comparable and the result is that multiplication and addition is the same thing as taking the maximum. This is a result of the well ordering theorem, which is equivalent to the axiom of choice.
Such assumption is widely accepted today and it's quite rare to find people working in contexts where it is false (like yours truly). In situations like that it is usually the case that $|A|\cdot|B|\neq\max\{|A|,|B|\}$.