Exam 3: Business in a Global Environment

When it sets controls to protect domestic industries by reducing foreign competition, the federal government is _____.

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

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.

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. -Chic managers must appreciate the system of shared beliefs, values, customs, and behaviors-called "norms" or the "national normalcy scheme"-of each country in which they want to do business.

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

Lumber can be produced in Canada at a lower cost than in the U.S. When Canadian lumber is shipped into the U.S., its price is raised about 20% to allow the U.S. lumber industry to remain competitive. This is accomplished through a(n) _______

As a representative for an international trade organization, GATT (General Agreement on Tariffs and Trade) and the WTO (World Trade Organization) are the two most important trademonitoring institutions with which Greco Pondiloupolous will probably work.

Under NAFTA (North American Free Trade Association), the United States, Canada, and Mexico are free to produce what each country does best and trade its goods and services without _____.

_____ is a necessary step in gearing your undergraduate education toward a career in international business.

The principle of _____ explains why France can produce white wine at a lower opportunity cost than the neighboring country of Germany.

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

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. -Understanding that, in some countries, people's personal and business lives overlap more than they do in the United States will help Chic managers deal with counterparts in high-context cultures.

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. -Even if Cajun opens company-owned restaurants in a foreign country, it may have to buy local food products to supplement the menu; in fact, it may have to buy chicken from local producers for the standard menu. In doing so, the company would be engaged in _____.

Strategic alliances range in scope from informal cooperative agreements to joint ventures.

Although different countries have different communication styles, virtually all cultures share a basic core of expression values.

Many multinational corporations (MNCs) have adopted the motto "Think globally and act locally."

In terms of sales revenue, the oil and gas company Royal Dutch Shell is the world's second largest multinational corporation, behind only ______

What's the international language of business

A joint venture is a form of strategic alliance (an agreement between two companies to pool resources in order to achieve business goals that benefit both partners).

A common method of protecting domestic goods and trade is to boycott offending nations at home and abroad.