Exam 9: Business in a Global Environment

The principle of _____ explains why France can produce white wine at a lower opportunity cost than the neighboring country of Germany.

_____ is a common motto among MNCs (multinational corporations).

In communicating with other countries or cultures,it's valuable to understand all of the following except _____.

Under a franchising agreement between a U.S. based company and a foreign firm,in return for the rights to use its brand name and sell its products,the U.S.franchiser requires the foreign company to adhere to an established business model.

Many multinational corporations (MNCs)have adopted the motto "Think globally and act locally."

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 granting franchise rights,Cajun would be the _____ and the buyer would be the _____.

Although Fitness Esteem Products has formed a foreign subsidiary,the only two advantages that it can expect from this strategy are full access to local markets and tight controls over subsidiary operations.

An absolute quota (as opposed to a quota)puts a(n)_____ on the quantity of a good that can be imported during a given period of time.

When it comes to the tendency of governments to control trade,we can safely say that _____.

Besides enhancing political and social cooperation,the European Union (EU)allows unrestricted trade among member nations and permits people with EU passports to work in any EU nation.

Strategic alliances range in scope from informal cooperative agreements to joint ventures.

_____ has become a popular location for software development and customer-call centers for American companies.

Chic Clothing Inc. has expanded to six locations in four different countries. Having seized the opportunity to make this move two years ago, top managers are now very glad they did (as are shareholders). Business is booming in both the U.S. and foreign markets. Current plans call for opening four new stores every year—two in the United States and two in Europe—for each of the next ten years. Chic’s managers are well aware that they’ll have to put a great deal of effort into learning new languages, traditions, customs, exchange rates, religions, and political practices. -By studying a nation's economic environment,Chic managers can better calculate currency valuations and exchange rates.

The difference between a country's total outflows and inflows of money over a period of time is its _____.

When nations continue to experience large and ever-growing trade deficits:

When communicating with other countries,you should regard cultural _____ as inappropriate and treat businesspeople as _____.

Generally speaking,nations tend to _____.

Both manufacturing and nonmanufacturing functions can be _____ to nations with lower _____.

U.S.exports are greater than U.S.imports.

Which of the following organizations is a powerful world trading block?