Exam 4: Business in a Global Economy

If the nation of Epsilon places a tax on all grapes imported from the nation of Zeta, Epsilon has imposed a ________.

How has the European Union affected international business worldwide?

Since consumers simply want to purchase the best product at the lowest prices, companies need not worry about aesthetics when working internationally.

Describe the difference in attitude between most economists and most government leaders with regard to free trade.

A free trade area is a compact abolishing trade barriers among member countries.

If a Turkish company closes its U.S. offices on Easter Sunday, the company is giving PRIMARY consideration to ________.

The country of Delta removes its dictator and moves toward democracy and a free market. Predict what happens to Delta's connection to the global economy.

U.S. exporters prefer a(n)________ dollar.

A free trade area that includes 27 independent states is the ________.

Culture is the complex set of values, behaviors, lifestyles, arts, beliefs, and institutions of a population that are passed on from generation to generation.

What is the opposite of nonconvertible currency?

An example of currency ________ would be if the value of the U.S dollar rises against the Malagasy ariary (the currency of Madagascar).

Exchange rates are the rates at which currencies are converted into another currency.

A quota is a total restriction on an import or export.

Cooperative arrangements between actual or potential competitors in which each partner retains its business independence are known as ________.

Describe the two major factors that determine an international firm's strategy.

According to the theory of comparative advantage, if the U.S. and Mexico increase their trade with each other, the two countries will experience ________ standards of living.

An engineering team has members from Egypt, Malaysia, Australia, Argentina, and the U.S. They communicate by email and videoconference. The work of this globalized team is made easier because of ________.

What is a valid explanation as to why some nations retain nonconvertible currency?

The cheap foreign labor argument for protectionism relates to ________.