Exam 3: Competing in Global Markets

Contract manufacturing involves the production of private-label goods by a foreign company to which a domestic company then attaches its brand name or trademark.

The benefits and costs of a common market like the North American Free Trade Agreement (NAFTA)are still being debated today.

Free trade is the movement of goods and services among nations without political or economic barriers.

The North American Free Trade Agreement (NAFTA)and the European Union (EU)are both examples of a common market.What is the idea behind a common market?

One way to satisfy an unexpected increase in sales is through contract manufacturing.

Efficient currency exchange markets have eliminated countertrade in global business transactions.

Maureen,a Canadian resident,was surprised to see that her home computer was actually made in Japan.Maureen did not know she had purchased a(n):

Climate and terrain in several South American countries are conducive to growing coffee efficiently.While other countries can grow coffee,they are not as productive or efficient.This fact would lead you to believe that the South American countries have a(n) _________________ advantage in the production of coffee.

Differences in electrical power and transportation systems can present special problems for Canadian firms when attempting to enter global markets.These represent the __________ forces that impact global business.

A_______ represents a long-term partnership between two or more companies established to help each firm build competitive market advantages.

To provide better service for their customers,Google purchased office space in India for their online customer service representatives.This is an example of:

One goal of the World Trade Organization (WTO)is to increase national subsidies on agricultural products.

The two basic types of tariffs are:

A firm desiring to enter a foreign market with a limited investment should consider a joint venture.

Successful multinational corporations disregard cultural differences between countries in which they operate.

Which of the following strategies offers the greatest profit potential?

Some countries have an abundance of natural resources and a lack of technology.

As a firm increases its FDI,it may do what?

Who has led a global effort to fight corruption and bribery in foreign markets?

If a Swiss chocolate firm purchases a Canadian ice cream manufacturer,the Canadian ice cream manufacturer becomes a: