Exam 3: Global Business

Ford Motor Company, Mazda Motor Corporation, and Matsushita Electrical Industrial Company formed a ____ to make heating and cooling units in Japan for Mazda cars beginning in 1988.The new company's heating and cooling units may also be used in Ford's cars.

In 1967, several Asian countries banded together to reduce the trade barriers between them and encourage trading among themselves.This is known as

Which bank was established in 1990 to encourage reconstruction and development in the eastern and central European countries?

Suppose Brazil, Argentina, Columbia, Peru, and Chile decide to form the South American Union to increase trade among these nations.This would be an example of a(n)

XYZ Company wants to explore commercial opportunities in India and is seeking economic and export-promotion information.The best possibility would be the

Janet hires an export merchant to help expand her business internationally.After signing contracts with a foreign purchaser outlining the terms of sale and delivery, the exporter will send Janet's merchandise when

The land of Narnack has very infertile soil but a large supply of oil.What action should Narnack take? Narnack should

An international bank that makes short-term loans to countries experiencing balance of payment deficits is called a multilateral development bank.

When a country exports more than it imports, it has a(n)

A letter of credit is issued by the transport carrier to the exporter to prove that merchandise has been shipped.

A reduction of the value of a nation's currency relative to the currencies of other countries is called a currency devaluation.

Countries experiencing balance-of-payments deficits can obtain short-term loans from the

The New United Motor Manufacturing, Inc., formed by Toyota and General Motors to make cars, is an example of a(n)

Landing Service Landing Service is a lawn furniture company that has been around for many years.It is known for its ability to produce furniture more efficiently than any other company in the nation.In truth, no other companies in any other nation come close.Landing Service has shipped many of its products internationally.In fact, 80 percent of its profits come from international sales.However, the Italian government has imposed a tax on imported furniture items to protect local companies.The Brazilian government, on the other hand, has imposed taxes on Landing Service products due to the government wanting a piece of the pie. Landing Service initially thought that these taxes were unfair because it was being singled out.However, after Landing Service contacted the organisation that had the power to mediate this situation, the furniture company realised that the taxation it was subjected to was legal and that there was nothing it could do about it. -Refer to Landing Service.The Landing Service does mostly

A newly formed country in the Caribbean has no high tariffs, yet other countries find it difficult to trade with the new country because of its requirements for labeling, product testing, and certifications.These restrictions can best be classified as

Absolute advantage is the ability to produce a specific product more efficiently than any other nation.

Which of the following is a potential drawback of licensing?

The TPP was agreed upon in the 1970s by a small group of Central American countries.

A limit on the amount of a particular good that may be brought into a country during a given period of time is called a(n)

Trading companies do not take title to products.