Exam 5: The Global Context of Business

Explain what the term exchange rate means. What is a "floating" exchange rate?

If Montrose Corp. purchases tangible assets in Germany, which international organizational structure is it using? Independent agent Licensing agreement Foreign direct investment Branch office Strategic alliance

According to the World Economic Forum's global competitiveness ranking, the top three countries in 2012‒13 were China, India, and Ireland. Finland, Switzerland, and Singapore. the U.S., Canada, and Australia. Ireland, Iceland, and Sweden. China, Singapore, and Japan.

The status of the BRIC nations has risen in international trade for one main reason: they all are big exporters of the commodities that the advanced industrialized nations need.

What are the advantages and disadvantages of globalization?

How will a business firm know if there is a demand for its product in another nation? The company is willing to discuss royalty fees with other international firms. There is a positive balance of payments. A firm cannot know if such a demand exists. The product is very successful in the company's home nation. Due to the successful prior entry of a competitor firm with a similar product in the international market.

Which of the following social or cultural differences would a Canadian exporter of refrigerators to Europe have to deal with? Consumers shop on a daily basis The average age of the population is younger The average age of the population is older Adjusted menus, ingredients, and hours of operation Foreign consumers are shorter and slimmer than Canadian consumers

HydroCan and Ozo of Asia work together to research and develop water filtration. They have been manufacturing two water filters in the Asia plant. With regard to this strategic alliance, which of the following is true? A clear vision of the future of the venture must be held by at least one of HydroCan or Ozo for it to be a success. Partner compatibility is guaranteed by financial agreements at the outset. The satisfaction of Ozo must be assured for it to work, since it is the most influential party. Each party agrees to cooperate for mutual benefit. All of these are true.

Computers-B-Us sent some of its managers abroad to gain more control over the operations and provide a more visible public presence. This type of organizational structure is known as a(n) independent agent. branch office. direct investment. strategic alliance. licensing arrangement.

When the value of the Canadian dollar rises both our imports and our exports become more expensive. there is no change in the price of our imports and our exports. our imports become more expensive and our exports become cheaper. our imports become cheaper and our exports become more expensive. both our imports and our exports become cheaper.

Government support of domestic businesses is the most important factor in generating national competitive advantage.

If the Mexican government puts a limit on the ounces of tequila being imported into Mexico, what has occurred? The government has installed a protection plan for its own tequila producers and is encouraging imports. The government has installed both a protection plan for its own tequila producers and a quota. The government has installed a quota and an embargo. The government is encouraging imports and installed an embargo. The government installed an embargo and a protection plan.

Other than a quota, embargo, or tariff, what legal barriers might Canada use to discourage the importation of cell phones?

What are the BRICS countries, and why have they become important?

Canada ranks first among the G8 countries in the proportion of its production that is exported.

When a country's exchange rate falls, that country's exports become less expensive to other countries.

All countries have a comparative advantage in some products.

Lack of knowledge of foreign customs has led most Canadian companies doing business in Japan to select this form of international organization. What is it? Strategic alliances Licensing arrangements Independent agents Direct investments Branch offices

Levi Strauss has an organization in a foreign country that has agreed to sell their products, to collect payments from the buyers, and to make sure that the buyers are satisfied. The organization is not part of Levi Strauss and may represent several non-competing firms at the same time. The organizational structure that Levi Strauss has selected is called a(n) strategic alliance. independent agent. branch office. licensing agreement. direct investment.

The balance of trade that Canada has experienced has been changing between favourable and unfavourable with about a seven year cycle. unfavourable since Confederation. favourable for most of the last thirty years. unfavourable for the last thirty years. favourable since Confederation.