Exam 9: Business in a Global Environment

Both manufacturing and nonmanufacturing functions can be _____ to nations with lower _____.

Which of the following organizations is a powerful world trading block?

Which of the following remains a serious question about the effect of regional trade agreements around the world?

When nations continue to run large and ever-growing trade deficits over extended periods of time, creditor nations will eventually stop taking IOUs and trade will cease.

A country's level of economic development is related to its _____.

According to the concept of opportunity cost, a country that decides to specialize in the production of a particular product may sacrifice the production of another.

Generally speaking, nations tend to _____.

By the year 2015, international trade in merchandise and services had topped _____.

Entrée Specialités, which produces food products and ships them to several independent buyers throughout Western Europe, is in the _____ business.

A strategic alliance is a working partnership between companies in different countries who pool resources to achieve goals and benefits for both firms.

The _____ prohibit(s) the distribution of bribes and other favors among American businesspeople conducting business with foreign officials and businesspeople.

Unless a country's absolute advantage is based on some limited natural resource, it seldom lasts.

Companies doing international business often face a smorgasbord of inconsistent laws and regulations.

An absolute quota (as opposed to a quota) puts an upper limit on the quantity of a good that can be imported during a given period of time.

How does an international franchise work?

The World Bank annually loans approximately $50 billion to poor and developing nations, which can use the money for health, nutrition, and education.

As strategies for going international, how do foreign direct investment and opening a foreign subsidiary differ from licensing?

Scenario-Based Chic Clothing Inc.has expanded to six locations in four different countries.Having seized the opportunity to make this move two years ago, top managers are now very glad they did (as are shareholders).Business is booming in both the U.S.and foreign markets.Current plans call for opening four new stores every year-two in the United States and two in Europe-for each of the next ten years.Chic's managers are well aware that they'll have to put a great deal of effort into learning new languages, traditions, customs, exchange rates, religions, and political practices. -No longer a domestic company, Chic Clothing is a multinational corporation.

Under a(n) _____, a foreign company pays a royalty fee to manufacture or sell your U.S.company's products, using your name and processes and perhaps your intellectual property.

The euro, the common currency of the European Union, facilitates trade and finance by _____.