Exam 3: Business in a Global Environment

As strategies for going international, how do foreign direct investment and opening a foreign subsidiary differ from licensing?

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

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.

Explain the difference between importing and exporting.

Companies doing international business often face a smorgasbord of _____.

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.

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

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 Yokahama turns to the WTO for the resolution of a dumping dispute, it runs the risk of the offended nation being authorized to set up its own trade barriers.

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

Basically, nations trade:

You are a U.S. importer of goods from Switzerland. You owe your supplier 1,000 Swiss Francs for goods recently purchased. You had a choice for paying for the goods the day you purchased them or paying for them 30 days later. On the day the goods were purchased the exchange rate was 1 Swiss franc = $0.78 (one franc costs $0.78 cents). Thirty days later, the exchange rate is 1 Swiss franc = $0.87 (one franc costs $0.87). You waited the 30 days to pay the bill. Which of the following statements is true

Most experts believe that trade controls, such as tariffs, quotas, and subsidies, are beneficial to the world economy.

_____ has become a popular location for software development and customer-call centers for American companies.

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

U. S. exports are greater than U.S. imports.

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

While importing is widely practiced throughout the world, exporting is not.

If you're a U. S. farmer receiving a subsidy, you are _____.

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.

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