Exam 4: The Global Context of Business

Which of the following type of firm conducts a significant portion of its business abroad?

What are three levels of involvement available for a firm that decides to conduct business internationally?

The North American Free Trade Agreement regulates trade between the United States,Canada,and Japan.

Today,fixed exchange rates are the norm for most major nations of the world.

The number of strategic alliances among major companies has decreased significantly over the last decade.

In which international organization structure does a firm have greater control over foreign activities?

Which of the following is a government payment to help a domestic business compete with foreign firms?

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. -Under what circumstances would telephone technology be considered a comparative advantage in Finland?

What is dumping? Under U.S.antidumping legislation,what conditions must be met to prove that dumping is being practiced?

A comparative advantage exists when a country can produce something more cheaply and/or of higher quality than any other country.

A strategic alliance may also be referred to as a ________.

Products created abroad and then transported and sold domestically are called ________.

Which organization most likely has the greatest impact on Asian countries?

Globalization refers to the process by which countries around the world are becoming more self-sufficient.

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. -The Trade Agreements Act of 1979 forbids "dumping." Because of their low prices,is it possible that Nokia could be accused of "dumping" their phones in the United States? What two conditions must be met to prove "dumping" under this act?

Products that are successful in one country may be useless in another.

Describe the relationship of exports and imports in a country's balance of trade and its balance of payments.

Fluctuations in the exchange rate have little influence on the balance of trade.

A subsidy is a tax designed to help companies who import products.

Developing countries are also called ________.