Exam 5: The Global Context of Business

"All this talk about a global economy is relevant only for big firms. My company is too small for that type of thinking." Agree or disagree with this statement, and support your position.

During the last few years, the benefits of NAFTA have been slowly eroded by

International firms conduct a significant portion of their business abroad, but their primary focus remains on the domestic market.

Why do foreign companies sometimes have problems complying with stringent and often changing regulations and bureaucratic obstacles?

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. Which of the following statements, if true, would support the president's argument for the global expansion of Fembooks through the Internet?

A nation's balance of trade is

Why might a company decide not to conduct business internationally?

Which of the following constitutes the best evidence for globalization?

When Walmart was forced to stop refunding price differences on items sold for less by other stores because the practice is illegal in Germany, Walmart discovered the effect of

The first decision in determining whether a company should go international is to determine if the company's products can be modified to fit a foreign market.

Canada ranks first among the G8 countries in the proportion of its production that is exported.

If a country's exports totalled $8 billion and its imports totalled $12 billion, then the country's balance of trade would be a surplus of $4 billion.

The comparative advantage form of competitive advantage means

Which of the following is true about dumping?

If the Mexican government puts a limit on the ounces of tequila being imported into Mexico, what has occurred?

The CEOs of Company A and B are investigating expansion into new markets, which will provide greater trade volume. Which scenario describes an economic environment that is most suitable for an importing-exporting opportunity?

International trade improves peoples' standard of living, yet countries often put up trade barriers? Why is this?

What is foreign direct investment?

Describe the forces that have combined to spark and sustain globalization.

The annual volume of world trade is about