Exam 3: Doing Business in Global Markets

A Brazilian steel manufacturer started selling certain categories of steel in the United States. However, the Brazilian manufacturer is selling the steel at a price significantly lower than it sells the same product back in Brazil. This practice may be a violation of U.S. law.

A favorable balance of trade occurs when the value of a nation's exports exceeds its imports.

To understand legal and regulatory conditions and be successful in global markets it's often useful to contact

A major advantage of licensing is

China's one-party political system, its past human rights abuses, and issues related to counterfeiting of products continue to concern some U.S. firms about doing business there.

Contract manufacturing is a low-cost way for Banana Republic to outsource the production of its clothing designs.

A trade deficit is the same as an unfavorable balance of trade.

Contract manufacturing requires heavy start-up costs by the domestic company.

Even though the U.S. exports a vast amount of goods globally, it exports a much lower percentage of its products than other countries do.

The Ozark Bike Company recently entered into an agreement with a large Japanese retailer to distribute its bicycles in Japan. Ozark Bike Company sees itself in a favorable position because

Which of the following is included when calculating a country's balance of payments?

Japanese auto manufacturers, such as Toyota and Nissan, have invested billions of dollars in the United States by building new factories, warehouses, and offices. These investments increase favorably the balance of payments for the United States.

The "second wave" of offshore outsourcing refers to

As a market for U.S. exports, China represents the only major business opportunity on the continent of Asia.

Compare and contrast comparative and absolute advantage in global markets. Provide examples.

The Ozark Bike Company recently entered into an agreement with a large Japanese retailer to distribute its bicycles in Japan. Ozark Bike Company sees itself in a favorable position because the yen is gaining strength compared to the U.S. dollar making it cheaper for Japanese customers to buy U.S. products.

The nation of Hasalot is home to roughly 95% of the world's Diamontite, a rare stone used in consumer products including watch faces, smartphones, computer monitors, and tablets. The fact that this is necessary for the production of many products we use today means Hasalot can almost name its price! Which of the following describes this situation?

Under a system of floating exchange rates, changes in the value of the U.S. dollar relative to other currencies are the result of

The quinoa seed is in high demand in wealthy countries but is not farmed in those countries. Approximately 97% of all quinoa production comes from small farmers in Taubestan who farm at high elevations. The seed is now considered an important ________ for Taubestan.

The only deposits of a rare and sought-after mineral known as ursarite are found in Russia. Since no other nation has deposits of ursarite, Russia has a(n)________ in this mineral.