Exam 4: The Global Context of Business

An exchange rate is the rate at which the currency of one nation can be exchanged for the currency of another nation.

The U.S.government requires that the U.S.Air Force buy all of its planes from U.S.manufacturers.In this case,protectionism is justified based on ________.

International firms conduct a good deal of their business abroad and may even maintain overseas manufacturing facilities.

All of the following are benefits to globalization EXCEPT:

Dumping and cartels are both illegal in the United States.

The world's third largest economy,behind that of the United States and Japan,is ________.

The flow of money into or out of a country is referred to as the ________.

In Germany,Wal-Mart has been required to buy existing retailers rather than open brand-new stores.What does this illustrate?

NAFTA created fewer jobs than proponents had predicted.

The United States has large trade deficits with Japan,China,and Mexico; this means that the United States has imported more from them than what they have purchased from us.

Bridget wants to buy some English tea priced at 10 pounds from an online seller.At an exchange rate of 1.5 dollars to the pound,she will pay ________ for the tea.

Explain how products that are successful in one country can be useless in another.

The General Agreements on Tariffs and Trade opened foreign markets to most financial services.

Associations of producers that control supply and prices are called ________.

Explain why foreign direct investment is often the riskiest,most complex,and most involved of the various types of international involvement.

Which organization created the classification of countries based on per capita income?

A majority of U.S.imports come from Canada,Japan,Mexico,and China.

Short Case Scenario 4-1 Nokia Corporation, headquartered in Finland, is a world leader in the cell phone industry. Because much of Finland is heavily forested and sparsely populated, it is difficult and expensive to develop a land-based communication network. Nokia created Europe's first digital telephone network in 1982. Today, Nokia has 27 percent of the world market in cell phones, well ahead of their competition. -How might sociocultural differences affect sales of Nokia phones outside Finland?

What risks may Poilane face if he decided to focus on other types of product offerings rather than on just the breads and pastries?

An import is a product made or grown abroad but sold domestically.