Exam 3: Business in a Global Environment

When it sets controls to protect domestic industries by reducing foreign competition, the federal government is _____.

Although different countries have different communication styles, virtually all cultures share a basic core of expression values.

Which of the following is generally not true of Americans

If a foreign currency _____ relative to the U.S. dollar, Americans will pay less for goods and services bought from sellers in the country that issues the currency.

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.

_____ is a common motto among MNCs (multinational corporations).

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 tried to get a foot in the door of some foreign markets by pricing certain products lower than it would for its own domestic market, importing nations would see the tactic as an unfair trade practice.

All of the following are common criticisms of MNCs (multinational corporations) except:

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

If a country buys more goods and services than it sells over a specified period of time, it has a _____.

Unless a country's absolute advantage is based on some limited natural resource, it seldom lasts.

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.

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

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. -RJR Nabisco (a U.S. company) allows a company in Singapore to use its brand name and recipe to produce and sell one of its products- Planters Nuts. In return RJR Nabisco receives a royalty fee. This type of international arrangement is called _______

When it comes to the tendency of governments to control trade, we can safely say that _____.

Under an international licensing agreement, a foreign company pays a royalty fee to manufacture or sell your U.S.made products in its own country, using your name and your processes and perhaps your intellectual property.

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

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.

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

If a country wants to offset the dumping of foreign goods on its soil, its most effective tactic will be imposing quotas on those goods.