Exam 5: The Global Context of Business

With respect to international organizational structures, it is correct to say that independent agents usually represent just one firm in foreign markets. licensing arrangements are too expensive for most Canadian firms to get involved in. a company has more control over branch managers than it does over agents or licence holders. the number of strategic alliances has declined somewhat in recent years because of strict government regulations in many foreign countries. Investment Canada's mandate is to limit direct foreign investment in Canada so that Canadian firms, not foreign ones, will control the Canadian market.

Licensing arrangements are arrangements by a creator of a musical or artistic work to allow another person to use, produce, distribute, or market it for a fee or royalty. by a supplier to allow another company the right to install or modify products produced by the supplier for a fee or royalty. by a general contractor to allow international subcontractors to build a building for a fee or royalty. by an owner of a process or product to allow another business to produce, distribute, or market it for a fee or royalty. by an owner of a patent to allow another business to produce, distribute, or market the product covered by the patent for a fee or royalty.

How does a quota influence international trade?

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 CEO thinks that a market segment already exists worldwide that will be receptive to Citronel's product line. Which of the following, if true, would strengthen the CEO's position? People in different parts of the world tend to embrace their own clothing fashions. Consumers in different parts of the world have varied spending power. Clothing fashions that originate in France tend to appeal to different places in the world. Citronel has accumulated extensive market data on French consumers. Citronel has been in business for only a few years.

What are the advantages and disadvantages associated with a multinational corporation?

The most fundamental goal of the WTO is to open world markets to international trade.

Why does the contemporary world economy revolve around three major marketplaces: North America, Europe, and Asia-Pacific?

Which areas represent the three major market places for international business? North America, South America, and Asia-Pacific North America, Europe, and Asia-Pacific South America, Africa, and Asia-Pacific South America, Europe, and Africa Asia-Pacific, Europe, and Africa

Lite Foods is a producer of breakfast cereals such as oatmeal and cornflakes, and its products can be found in nearly all supermarkets across Canada. Lite Foods now has its sights set on international shores, specifically the large Chinese consumer market. Company executives are currently debating the optimal route for the firm to enter the market. Which of the following, if true, would strengthen the argument for exporting the company's products to China? Lite Foods has a large budget set aside for foreign direct investments. Lite Foods wants to have strict control over its international operations. Lite Foods has to modify its product line to suit Chinese tastes and preferences. Lite Foods' products do not have a "healthy" reputation in the United States. Lite Foods has significant excess capacity that results in production overruns.

According to Transparency International, Brazil is the least corrupt of the BRIC nations.

If Trinidad could produce mangos cheaper and better tasting than any other country due to its climate, then it would have an absolute advantage over any other country.

With globalization, there will be less distinction between domestic and foreign firms.

Biltmore Corp. is involved in a planning process for doing business internationally. They have already determined that their product can be modified to fit foreign markets. What should they do next? Determine if the company has the skills necessary to do business abroad Determine if there is international demand for the product Assess the business climate for receptivity to imports Determine if the product needs to be modified to fit the foreign market Conduct market research to determine potential sales

Which of the following is correct regarding the levels of foreign involvement a business can exhibit? Importing and exporting represent the highest level of involvement in international operations. Exporters and importers tend to conduct most of their business in foreign markets. Only large companies are exporters. An international firm conducts a significant portion of its business abroad, and it usually manufactures the vast majority of its products in foreign countries. For multinational firms, the location of its head office is largely irrelevant.

If Canada's exports totaled $8 billion and its imports totaled $12 billion, then Canada's balance of trade would be a surplus of $4 billion dollars.

A few years ago, the Certified General Accountants challenged the rule that in Quebec only Chartered Accountants could have auditing rights. This was an example of a dispute about protectionist tariffs. revenue tariffs. the Agreement on Internal Trade. money laundering. federal‒provincial revenue sharing.

Local content laws require that products sold in a particular country must be completely made in that country.

In which international organizational structure would royalties likely be paid to the exporter? Strategic alliance Joint venture Licensing arrangement A green field manufacturing plant Branch office

The Congo imported $150 billion worth of goods and services while exporting $175 billion to other countries. It has a negative balance of payments. comparative advantage. positive balance of payments. trade surplus. trade deficit.

As the value of a country's currency falls, there is an increasing incentive for foreign companies to ship products into the domestic market.