Exam 4: The Global Context of Business

The ________ is the rate at which the currency of one nation can be exchanged for that of another.

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. -Why might Nokia managers have preferred merely exporting over forming a licensing arrangement?

A main purpose of tariffs on imports is to ________.

The ultimate form of a quota is a tariff.

A tariff is a tax on imported products.

What barriers exist to international trade?

China and India require that when foreign firms enter into joint ventures with local firms,the local partners must have the controlling ownership stake.What does this illustrate?

As the value of a country's currency falls,its balance of trade should ________.

Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can?

Many countries require that products sold in a particular country be at least partly made there.This practice is referred to as ________.

What is the goal of the World Trade Organization?

What countries comprise NAFTA?

An importer is a firm that makes products in one country and then distributes and sells them in others.

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. -What risks might Nokia face if engaging in a licensing arrangement for the production of phones?

When a country's imports exceed its exports,the nation has a ________.

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. -Other than a quota,embargo,or tariff,what legal barriers might the United States use to discourage the importation of cell phones?

How has NAFTA influenced international trade?

In some South American countries,it is sometimes legal to bribe other businesses and government officials,while this practice is illegal in the United States.This barrier to international trade is known as ________.

Assume that the United States requires that products sold here be at least 51 percent made here.This would be an example of a ________.

Discuss the differences between absolute advantage and comparative advantage.