Exam 3: Business in a Global Environment

_____ is not one of the purposes of the General Agreement on Tariffs and Trade.

Which of the following remains a serious question about the effect of regional trade agreements around the world

Policies that restrict free trade among nations are called _____.

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. -In selling recipe rights to buyers in foreign markets, Cajun would be engaged in _____.

When researching global business opportunities, firms must grasp the cultural, legal. economic, and _____ differences between the home country and the host country.

An absolute quota (as opposed to a quota) puts a(n) _____ on the quantity of a good that can be imported during a given period of time.

In a _____ culture, the numerous interlocking personal and family connections that hold people together have an effect on almost all interactions.

According to the principle of _____, a country that decides to specialize in the production of a particular product must sacrifice the production of another product.

Having set up factories, sales offices, and branch stores in several foreign nations, U.S.based Crenco has gone global through a form of expansion called a "joint venture."

With a troubled economy and the prospect of devastating economic times ahead, the Central European country of Westphalia should look to the World Bank for a major loan.

Many people support increased MNC activities because infant mortality rates have decreased, literacy has improved, and the standard of living has risen in many countries where multinationals operate.

SCENARIO-BASED Yokahama Sports Equipment Ltd. is a successful manufacturer and distributor of sports equipment in the Far East, Australia, and Europe. Top management sees attractive opportunities in the U.S. market because of the stable economy and government. In addition, of course, Americans have disposable income to spend and are willing to buy imported goods. Yokahama executives realize, however, that entering the U.S. market can be difficult and that they’ll need a well-planned strategy. -If Australia were to put a monthly limit on some Yokahama imports, it would be using a trade practice called a quota.

SCENARIO-BASED Yokahama Sports Equipment Ltd. is a successful manufacturer and distributor of sports equipment in the Far East, Australia, and Europe. Top management sees attractive opportunities in the U.S. market because of the stable economy and government. In addition, of course, Americans have disposable income to spend and are willing to buy imported goods. Yokahama executives realize, however, that entering the U.S. market can be difficult and that they’ll need a well-planned strategy. -Should dumping become an issue, Yokahama might turn to the WTO for resolution of the dispute.

Although Fitness Esteem Products has formed a foreign subsidiary, the only two advantages that it can expect from this strategy are full access to local markets and tight controls over subsidiary operations.

According to the independent German organization, Transparency International, Canada boasts the world's lowest level of business corruption.

All of the following nations belong to the European Union: Ireland, the United Kingdom, Spain, Portugal, Sweden, Denmark, Finland, Canada, and Switzerland.

SCENARIO-BASED Yokahama Sports Equipment Ltd. is a successful manufacturer and distributor of sports equipment in the Far East, Australia, and Europe. Top management sees attractive opportunities in the U.S. market because of the stable economy and government. In addition, of course, Americans have disposable income to spend and are willing to buy imported goods. Yokahama executives realize, however, that entering the U.S. market can be difficult and that they’ll need a well-planned strategy. -The U.S. government may try to keep Yokahama's prices more competitive with those of Americanmade goods by placing a tax, called an embargo, on Yokahama imports.

Among other things, many MNCs (multinational corporations) have increased their sensitivity to local market conditions by _____.

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

In high-context cultures, business-people don't need to know much about the personal life of a person in order to deal with him or her in a business setting.