Exam 5: The Global Context of Business

Lite Foods is a producer of breakfast cereals such as oatmeal and cornflakes, and its products can be found in nearly all supermarkets across Canada. Lite Foods now has its sights set on international shores, specifically the large Chinese consumer market. Company executives are currently debating the optimal route for the firm to enter the market. Which of the following, if true, would strengthen the argument for venturing into the Chinese market?

Canada prohibits the importing of ivory from any foreign nation. This is a(n)

Greencorp Ltd. sold the rights for production of 4 Star Soil to Soil X of Italy, and that company now produces the special mix of fertilized soil and sells it in Italy. This arrangement is called a(n)

What is protectionism? List and describe four protectionist measures.

If Montrose Corp. purchases tangible assets in Germany, which international organizational structure is it using?

According to the World Bank, upper middle-income countries are defined as

Robert has established a start-up business manufacturing a range of outdoor wear for the leisure market. Which possible scenario would best show that Robert is positioning his business for the global business market?

The concept of absolute advantage focuses on cross-country comparisons, while the concept of relative advantage focuses more on the situation within a given country.

The difference between absolute and comparative advantages is that absolute advantage is relative to ________, while comparative advantage is relative to ________.

What are the three major marketplaces in the contemporary world economy?

Identify some of the free trade agreements located outside of the Americas and the countries involved in them.

What are the advantages and disadvantages associated with a multinational corporation?

In 2014, Canada had a trade surplus of $4.6 billion.

Explain why fluctuations in exchange rates have a significant influence on the balance of trade.

What is a trade deficit?

Bob's Barbecue has expanded its operations to include several foreign countries. Bob has given individuals or organizations in those countries exclusive rights to market Bob's products. He has shared his secret recipe and trade secrets on how to produce the products. In return for this, Bob will receive a percentage of the revenues generated in each of the countries. Bob's arrangements are best described as a(n)

Fembooks Bookstore sells books only over the Internet. It has established an excellent reputation for finding out-of-print and hard-to-find books of interest to women. The CEO of Fembooks is considering going global with the business, since it is already established on the Internet. The vice-president further argues that more reasons exist for not expanding Fembooks on a global basis. Which of the following statements, if true, would not support the vice-president's argument?

The Congo imported $150 billion worth of goods and services while exporting $175 billion to other countries. It has a

Because it improves the economies to such a great extent, governments encourage unrestricted trade with foreign countries.

When Manulife Financial entered the Chinese market, it made an agreement with Sinochem, a state-owned trading company. This is an example of