Exam 4: Competing in World Markets

Complete the following using the terms listed. -_____monitors agreements among General Agreement on Tariffs and Trade (GATT)member nations,mediates disputes,and works to reduce trade barriers throughout the world.

A joint venture is a partnership between companies formed for a specific undertaking.

Complete the following using the terms listed. -_____ describes the fall of currency's value relative to other currencies.

How do export trading companies earn profits?

Rhodia sells mining equipment to Reherbia in return for cigars.This is an example of _____.

Complete the following using the terms listed. -_____ refers to selling goods abroad at a price lower than that charged in the domestic market.

Complete the following using the terms listed. -Relocation of business processes to a lower-cost location overseas is known as ________.

A Canadian software company that specializes in developing computer games enters into an agreement with a Japanese software company.Under this agreement,the Japanese company has the right to manufacture and sell the Canadian company's games in Japan.This agreement is an example of _____.

The Coca-Cola Company designs its ads around the world to emphasize a common theme.These ads are modified only slightly for local markets.Coca-Cola is using which of the following strategies in its international operations?

A country's exchange rate is based on _____.

When companies develop products and marketing strategies that appeal to the customer tastes and buying habits of particular national markets,they are using a _____.

Compared with the United States,Europeans value employee benefits more than low unemployment and business efficiency.

Speedy Lube enters into a contract with a foreign company to produce and distribute its products in a specific geographic area.Speedy Lube is involved in _____.

How will United Airlines' decision of equipping its staff with Apple iPhones improve its customer service?

Allison,a U.S.citizen,travels to Europe and spends $2,000 on souvenirs.She is contributing to the _____.

The hypothetical country of Eurica is experiencing severe competition to its domestic auto industry in the form of foreign imports.Many jobs are threatened.Eurica places a 25 percent tariff on the price of imported cars.This type of tariff is known as a(n)_____ tariff.

Complete the following using the terms listed. -A(n)_____ develops and markets products to serve different needs and tastes of separate national markets.

Amit,CEO of Charter Chemical,has recognized the financial opportunities in China.Amit has hired a foreign freight forwarder to coordinate selling Charter Chemical's products outside the United States.Charter Chemical is now involved in _____.

AusterTech,a U.S.company,produces computer parts and sells them to South American countries.AusterTech is engaging in the international business activity known as _____.

A Japanese insurance company purchases U.S.government securities.From the perspective of the United States,the balance of trade with Japan will _____ and the balance of payments with Japan will _____.