Exam 9: Business in a Global Environment

As a U.S.farmer who receives a subsidy,you're guaranteed a certain price for your output regardless of the market price.

Because the small Mideastern country of Asiana has experienced an unfavorable balance of payments for the past 22 years,the stability of its _____ may be in jeopardy.

Women's bathing suits can be produced in foreign countries at a lower cost than in the U.S.When women's bathing suits are shipped into the U.S. ,their price is raised about 14% to allow the U.S.bathing suit industry to remain competitive.This is accomplished through a(n)_______

Yokahama Sports Equipment Ltd. is a successful manufacturer and distributor of sports equipment in the Far East, Australia, and Europe. Top management sees attractive opportunities in the U.S. market because of the stable economy and government. In addition, of course, Americans have disposable income to spend and are willing to buy imported goods. Yokahama executives realize, however, that entering the U.S. market can be difficult and that they’ll need a well-planned strategy. -If Yokahama tried to get a foot in the door of some foreign markets by pricing certain products lower than it would for its own domestic market,importing nations would see the tactic as an unfair trade practice.

According to the independent organization Transparency International,_____ suffers less business corruption than any other country.

The formal establishment of business operations on foreign soil,such as factories,sales offices,or branch stores,is called _____.

If a foreign currency _____ relative to the U.S.dollar,Americans will pay less for goods and services bought from sellers in the country that issues the currency.

In economic terms,"balance of payments" refers to the difference between a country's total outflows and inflows of money over a period of time.

A common method of protecting domestic goods and trade is to boycott offending nations at home and abroad.

If the U.S.dollar goes down relative to a foreign currency,foreign buyers pay more for American goods and services.

Centralized decision making allows Wentworth Productions,a multinational film production company,to be more sensitive to local market conditions in other nations.

You are a U.S.importer of goods from Switzerland.You owe your supplier 1,000 Swiss Francs for goods recently purchased.You had a choice for paying for the goods the day you purchased them or paying for them 30 days later.On the day the goods were purchased the exchange rate was 1 Swiss franc = $0.78 (one franc costs $0.78 cents).Thirty days later,the exchange rate is 1 Swiss franc = $0.87 (one franc costs $0.87).You waited the 30 days to pay the bill.Which of the following statements is true?

Cajun Chicken, a growing franchise chain based in Lafayette, Louisiana, has expanded to 185 locations in the United States. Because they realize that domestic growth is limited, the owners are contemplating expansion to selected foreign countries. Thus far, research has shown that the rights to use many of the firm’s recipes can be sold to other restaurants, cafeterias, and food stores. Cajun can also sell prepackaged food products, complete with spices, to other markets. At this point, whether to start by opening company-owned outlets or selling franchises is still a toss up. In any case, the long-term picture looks good. -Even if Cajun opens company-owned restaurants in a foreign country,it may have to buy local food products to supplement the menu;in fact,it may have to buy chicken from local producers for the standard menu.In doing so,the company would be engaged in _____.

Cajun Chicken, a growing franchise chain based in Lafayette, Louisiana, has expanded to 185 locations in the United States. Because they realize that domestic growth is limited, the owners are contemplating expansion to selected foreign countries. Thus far, research has shown that the rights to use many of the firm’s recipes can be sold to other restaurants, cafeterias, and food stores. Cajun can also sell prepackaged food products, complete with spices, to other markets. At this point, whether to start by opening company-owned outlets or selling franchises is still a toss up. In any case, the long-term picture looks good. -In selling recipe rights to buyers in foreign markets,Cajun would be engaged in _____.

A joint venture is a form of strategic alliance (an agreement between two companies to pool resources in order to achieve business goals that benefit both partners).

If the U.S.dollar goes up relative to a foreign currency,buyers using that currency pay ____ for American goods and services.

The country of East Anglia exports domestically made products and imports products that aren't available locally.When exports are compared to imports,the resulting _____,which shows that more dollar value is exported than imported,reveals a(n)_____.

If a country wants to offset the dumping of foreign goods on its soil,its most effective tactic will be imposing quotas on those goods.

A reliable banking system,a strong stock market,and a government that discourages corruption while encouraging investment and competition are all conducive to economic growth.

A scheduled departure of the United Kingdom from the European Union in the Spring of 2019 was approved by slightly more than 50% of those voting in the United Kingdom.