Exam 3: Doing Business in Global Markets

A common market is a group of countries that have no internal tariffs among member nations, yet have a common external tariff.

A Kia Motors assembly plant in Georgia is an example of foreign direct investment in the United States.

Which of the following is an advantage of offshore outsourcing?

A "second wave" of offshore outsourcing involves sizable numbers of skilled, well-educated, middle-income workers in service-sector jobs.

You sell paint products and accessories for painters. Recently, you were in contact with merchants from India who have taken an interest in your products and are willing to talk more about entering into a contractual deal to purchase your goods. This opportunity may be just the thing to get your business out of its slump, because you learned from your Introduction to Business class that very few barriers exist between U.S. and Indian markets.

The ________ is the difference between money flowing into a country from exports, and money leaving the country for imports, plus money flows coming from other factors such as tourism, foreign aid, military expenditures, and foreign investment.

Through licensing, domestic firms give foreign manufacturers/producers the right to produce their product and use their trademark in exchange for royalties.

China and Russia present enormous trading opportunities. However, due to political risks in those counties, foreign direct investment is halted.

The ________ is the total value of a nation's exports compared to its imports measured over a specific period of time.

Which of the following terms describes the set of values, beliefs, rules, language, and institutions held by a specific group of people?

The principle of mercantilism encouraged nations to keep economics separate from politics.

The fee paid to a firm in a licensing agreement that gives another firm the right to manufacture their product or use its trademark is called

Offshore outsourcing is another term used to describe the act of U.S. firms selling their domestically manufactured goods to foreign customers.

Imported wines such as a bordeaux from France or a prosecco from Italy often sell at a higher price than wine made in Napa Valley, California. This is due to the protective tariff importers pay for the foreign wine.

As students think about a career in the business world today, which of the following is a good strategic suggestion?

Granting a foreign company the right to manufacture your product or to use your firm's trademark in return for a fee is called

A small wine and cheese store in Milwaukee sells dozens of different types of cheese-Bulgarian, French, Danish, Greek, and a domestic from its home state of Wisconsin. The domestic cheese sells for less than $2.00 per pound, while all the international cheeses are priced at over $4.00 per pound. Clearly, there is an embargo on international food products.

When competing in global markets, business organizations utilize a variety of strategies to reach foreign buyers.

When U.S. firms choose to hire skilled and unskilled workers in other countries to produce goods and services, rather than producing them in the United States, we refer to this as

When Nestlé, a Swiss company, purchased Ralston Purina, a U.S. company, Ralston Purina became a foreign licensee.