Exam 3: Business in a Global Environment

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

Describe the common methods that nations use to control trade across their borders.

When a Chinese company sells digital cameras in the U.S. below the price of domestically produced digital cameras, the company is following a practice called dumping.

Ben Franklin's adage "Time is money" is now an accepted principle _____.

Compare international licensing with international contract manufacturing (or outsourcing).

To offset the dumping of goods on its soil, a country will usually _____.

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 country is the only source of a particular product or it can make more of a product using the same amount of or fewer resources than other countries we say that the country has an absolute advantage in economic terms.

In economic terms, "balance of payments" refers to the difference between a country's total outflows and inflows of money over a period of time.

In _____ cultures, personal and work relationships tend to be compartmentalized.

According to the independent organization Transparency International, _____ suffers less business corruption than any other country.

Foreign direct investment, which is generally the most expensive commitment that a company can make to an overseas market, is usually driven by the size and attractiveness of the market.

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.

The World Bank annually loans approximately $70 billion to poor and developing nations, which can use the money for health, nutrition, and education.

The largest factors in a country's balance of payments consist of revenues from tourism and welfare benefits paid to citizens and immigrants.

Under a(n) _____ between a U.S.based company and a foreign company, in return for the right to use the parent company's brand name and sell its goods and services, the foreign company is required to adhere to an established business model.

Which powerful trading bloc came about because of an agreement between the United States, Canada and Mexico

What role do balance of trade, trade surplus, and trade deficit play in a nation's economy

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

Under a(n) _____, a foreign company pays a royalty fee to manufacture or sell your U.S. company's products, using your name and processes and perhaps your intellectual property.