Exam 3: Business in a Global Environment

According to some experts, American businesspeople are at a competitive disadvantage when they're prohibited from _____ foreign officials or businesspeople.

When Whitlock Clothiers began overseas operations, top management had to learn to appreciate the _____ environments of other countries-that is, other people's systems of shared beliefs, values, customs, and behaviors.

The formal establishment of business operations on foreign soil, such as factories, sales offices, or branch stores, is called _____.

A _____ is an agreement between two companies (or a company and a nation) to pool resources to achieve goals that benefit both partners.

Because the sovereign republic of Lower Slipponia desires economic growth and increased foreign investment, the government has made great strides in improving the nation's infrastructure, including _____

A strategic alliance between a U.S. firm and a German firm can achieve all of the following benefits except _____.

Under NAFTA, (North American Free Trade Association) the United States, Canada, and Mexico are free to produce what each country produces best and trade its goods and services without devaluing its 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. -By studying a nation's economic environment, Chic managers can better calculate currency valuations and exchange rates.

Which of the following organizations is a powerful world trading block

If the U.S. dollar goes down relative to a foreign currency, buyers using that currency pay ____ for American goods and services.

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. -Because businesspeople participate in a nation's culture, Chic managers must heed the Foreign Corrupt Practices Act in order to avoid contaminating foreign cultural environments.

One way of dealing with local laws and regulations in foreign countries is to hire local _____ to provide advice.

When nations continue to experience large and ever-growing trade deficits:

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.

In communicating with other countries or cultures, it's valuable to understand all of the following except _____.

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.

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.

As someone who lives and works in a European Union country and uses the euro, you've probably found that this common currency facilitates trade and finance by making exchange rate differences less complicated.

_____ is a common method of protecting domestic goods and trade.

Explain the significant elements of the global business environment.