Exam 4: Business in a Global Economy

Contract manufacturing occurs when a firm pays another firm to produce part or all of its goods as an alternative to the payer owning and operating its own production facility.

List the six methods for entering foreign markets.

Companies that sell a single product throughout the entire world follow a transnational strategy.

When Mu Manufacturing Co. exports their technological know-how in exchange for a fee, they are entering foreign markets through a ________.

If the U.S. has the ability to produce more steel than any other country in the world, the U.S. has a(n)________ advantage in steel production.

A U.S. consumer electronics company has to shut down because it cannot compete against foreign manufacturers. For the U.S., this is an example of a(n)________ of international trade.

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

When all countries focus on producing those products for which they have a comparative advantage, collectively, they will produce more products.

All of the following contribute to accelerating globalization EXCEPT ________.

The ratio at which Australian dollars are converted into Indonesian rupiah is known as the ________ rate.

American Express competes around the world by offering a customized product while simultaneously selling at the lowest possible price. The company is using a ________ strategy.

If Ecuador has a dispute with France over the importation of bananas, from which agency can Ecuador seek arbitration?

The purchasing of property and businesses in foreign nations is called globalization of markets.

The growing demand for biofuels in the U.S. that has led to a growing supply of soybeans from Brazil is an example of all of the following EXCEPT ________ economies.

How do most economists feel about protectionist trade barriers?

A term that describes the movement of production away from a domestic production site to a foreign location is ________ outsourcing.

An example of globalization of ________ is Toyota opening a factory in Kentucky.

An American businessperson who demonstrates sensitivity to and appreciation for Chilean culture possesses ________.

Who benefits from trade barriers?

A free trade area that includes Canada and the U.S., but not Japan, is the ________.