Exam 4: The Global Context of Business

Which of the following international organization strategies consists of firms giving individuals or companies in a foreign country exclusive rights to manufacture or market their products in that market?

Strategic alliances give firms greater control over foreign activities than agents and licensees.

What is a cartel? Use an example to clarify your response.

South Africa produces diamonds more cheaply and of higher quality than any other country; this is an example of absolute advantage.

To avoid transportation costs and tariffs,Apics Enterprises gave exclusive rights to Svenson AB in Finland to produce its product.What does this illustrate?

What factors led Lionel Poilane to believe that his breads and pastries could be marketed worldwide?

A nation's ________ is the economic value of all of the products that a company exports minus the economic value of its imports.

What are local content laws?

Free market economies often establish some system of quotas and/or tariffs.

A country has a(n)________ in goods it can produce more efficiently than other goods.

Which of the following types of tariff is meant to discourage the import of particular products?

What are some advantages facing businesses that engage in strategic alliances?

Products created domestically and transported for sale abroad are called ________.

Which of the following is illegal in the United States?

What organization was founded in Pacific Asia in 1967 for economic,political,social,and cultural cooperation?

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 tariff on cell phones impact Nokia's exportation of cell phones to the United States?

Protecting domestic business at the expense of free market competition is ________.

Revenue tariffs are primarily designed to discourage the importation of foreign products.

Low-income countries are often called developing countries.

Which of the following restricts the number of products of a certain type that can be imported into a country?