Exam 5: The Global Context of Business

Citronel is a French company that markets a range of fashionable clothing to French consumers under its widely known brand name. The company wants to begin marketing its products worldwide and needs to decide on the most effective and profitable strategy. Citronel's Chief Operating Officer thinks that the company should adopt a standardized marketing approach throughout the world. Which of the following, if true, would strengthen her position? Long production runs of the same items would allow the company to save money. Different cultures vary in how they perceive French clothing. The company has had only limited success establishing a consistent marketing strategy throughout France. The company will have strong competition from various brands throughout the world. The company has a substantial marketing budget.

The balance of trade and balance of payments concepts are almost identical except that the latter takes into account foreign spending by the military.

According to the World Bank, Canada, South Korea, and Kuwait are all considered high-income countries.

What organization was founded in Pacific Asia for economic, political, social, and cultural cooperation? CENTO ASEAN Warsaw Pact NATO SEATO

Canadians who were opposed to free trade feared all of the following except Canadian cultural sovereignty would be lost. the U.S. might take our natural resources. Canada would lose the right to control its own environmental standards. jobs would be lost to other countries. Canada would have to peg the Canadian dollar to the U.S. dollar

Using a(n) ________ strategy, the company finds a partner in the country in which it would like to conduct business. independent agency direct investment strategic alliance replication branch office

One of the most significant developments in foreign exchange has been the introduction of the euro. Explain why.

Describe the forces that have combined to spark and sustain globalization.

How might sociocultural differences affect the sales of Nokia phones outside Finland?

Why should companies conducting international operations be concerned about exchange rate fluctuations?

If the Canadian dollar rises, our balance of trade will most likely ________ resulting in a ________ of jobs in the export industry. rise; increase decrease; decrease decrease; increase rise; decrease None of these

An embargo is really a quota of zero.

In 2011, BRIC became BRICS when Switzerland was added to the group.

Bob's Barbecue has expanded its operations to include several foreign countries. Bob has given individuals or organizations in those countries exclusive rights to market Bob's products. He has shared his secret recipe and trade secrets on how to produce the products. In return for this, Bob will receive a percentage of the revenues generated in each of the countries. Bob's arrangements are best described as a(n) licensing arrangement. independent agent. strategic alliance. direct investment. branch office.

What are the strengths of each of the BRICS countries?

Supporters of free trade in Canada argued all of the following except Canadian imports would increase because of free trade. there is nothing in the free trade agreements that threatens Canada's control over its energy resources. access to U.S. markets is guaranteed by free trade and is therefore crucial to protecting Canadian employment. the environment is not covered in free trade agreements. the free trade agreements are about trade and tariffs, not cultural sovereignty.

Countries tend to export products that they can produce better or less expensively than other countries and import products they cannot produce as effectively.

Because it improves the economies to such a great extent, governments encourage unrestricted trade with foreign countries.

Michael is going to sell his baby products abroad, and he is interested in having someone in the foreign country sell the product for him. Michael is most interested in working with a(n) franchisee. multinational firm. branch office. international firm. independent agent.

Local content laws state that products sold in a country should be at least partially made in that country. an imported product must meet local standards before it can be brought in. an imported product must include some raw materials from the domestic country. an imported product must fit with the local culture before it can be brought in. an imported product must abide by local bylaws before it can be brought in.