Exam 4: The Global Context of Business

A subsidy is a ________.

Selling a product abroad for less than the cost of production is called ________.

Local content laws guarantee that products sold in a country are at least partly made there.

If 1 euro = $1.35 on June 4 and $1.40 on June 5,the value of the dollar has risen.

The value of the U.S.dollar relative to the value of the British pound fluctuates with market conditions.What is this type of exchange rate?

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. -When is a corporation such as Nokia defined as an international firm and when is it defined as a multinational firm?

Which country represents the world's most stable economy?

What is a nation's balance of trade? What is the difference between a trade surplus and a trade deficit?

A subsidy essentially ________ the prices of ________ rather than ________ the prices of ________.

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

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 the imposition of a quota on cell phones impact Nokia's exportation of cell phones to the United States?

When did international business begin?

The money that a nation pays for imports and receives for exports is a part of that nation's ________.

What are the advantages and disadvantages of globalization?

As the value of a country's currency rises,________.

Tariffs that are imposed strictly to raise money for the government are ________.

Which country dominates the Pacific Asia region economically?

Explain absolute advantage and comparative advantage.

Which of the following is a tax on imported goods or products?

A subsidy is a government payment to help a domestic business compete.