Exam 3: Business in a Global Environment

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

Companies doing international business often face a smorgasbord of inconsistent laws and regulations.

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.

Explain a nation's balance of payments.

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

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.

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

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

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.

Nations practice dumping in order to _____.

A country's level of economic development is related to its _____.

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 _____.

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

The difference between a country's total outflows and inflows of money over a period of time is its _____.

The United States is currently experiencing an international trade _____.

When researching global business opportunities, firms must grasp a variety of cultural, technological, economic, and political differences.

According to the concept of opportunity cost, a country that decides to specialize in the production of a particular product may sacrifice the production of another.

The country of Cretonia is the only source of the rare mineral zhytan used in nuclear reactors. The country of Fredonte can produce twice as much creosote as any other country using the same amount of input resources. Both nations enjoy a(n) ____ advantage.

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

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.