Exam 9: Business in a Global Environment

All of the following are conducive to economic growth _____.

The largest factor in a country's balance of payments is its _____.

Besides enhancing political and social cooperation, the European Union (EU) allows unrestricted trade among member nations and permits people with EU passports to work in any EU nation.

The Foreign Corrupt Practices Act, which prohibits the distribution of bribes, can put American businesspeople at a competitive disadvantage.

Usually driven by the size and attractiveness of the foreign market, _____ is generally the most expensive commitment that a company can make in an overseas market.

As a U.S.farmer who receives a subsidy, you're guaranteed a certain price for your output regardless of the market price.

If a foreign currency _____ relative to the U.S.dollar, Americans must pay more for goods and services bought from sellers in the country that issues the currency.

Although Fitness Esteem Products has formed a foreign subsidiary, the only two advantages that it can expect from this strategy are full access to local markets and tight controls over subsidiary operations.

_____ is a common motto among MNCs (multinational corporations).

U.S.exports are greater than U.S.imports.

A factory worker in the United States receives approximately _____ times more pay per hour than a manual worker in India.

Scenario-Based Cajun Chicken, a growing franchise chain based in Lafayette, Louisiana, has expanded to 185 locations in the United States.Because they realize that domestic growth is limited, the owners are contemplating expansion to selected foreign countries.Thus far, research has shown that the rights to use many of the firm's recipes can be sold to other restaurants, cafeterias, and food stores.Cajun can also sell prepackaged food products, complete with spices, to other markets.At this point, whether to start by opening company-owned outlets or selling franchises is still a toss?up.In any case, the long-term picture looks good. -In granting franchise rights, Cajun would be the _____ and the buyer would be the _____.

When researching global business opportunities, firms must grasp the cultural, legal, economic, and _____ differences between the home country and the host country.

If a foreign currency _____ relative to the U.S.dollar, Americans will pay less for goods and services bought from sellers in the country that issues the currency.

Most experts believe that trade controls, such as tariffs, quotas, and subsidies, are beneficial to the world economy.

A strategic alliance between a U.S.firm and a German firm can result in enhanced marketing efforts, improved products, and the reduction of production and distribution costs.

Nations engage in trade primarily because no nation can produce all of the goods and services that it needs.

Ben Franklin's adage "Time is money" is now a universally accepted principle.

You are a U.S.importer of goods from Switzerland.You owe your supplier 1,000 Swiss Francs for goods recently purchased.You had a choice for paying for the goods the day you purchased them or paying for them 30 days later.On the day the goods were purchased the exchange rate was 1 Swiss franc = $0.78 (one franc costs $0.78 cents).Thirty days later, the exchange rate is 1 Swiss franc = $0.87 (one franc costs $0.87).You waited the 30 days to pay the bill.Which of the following statements is true?

Explain the difference between importing and exporting.