Exam 3: Doing Business in Global Markets

The island nation of Hasalot exports $350 of goods and services and imports $180 of goods and services. Hasalot has an unfavorable balance of trade of $170.

________ occurs when a country has a monopoly on producing a product or is able to produce it at a cost well below that of all other countries.

For a firm to be considered a multinational corporation, which of the following conditions must be true?

Jamieson Brothers, Inc. reported that it owns and operates 189 companies worldwide with 13% of its sales coming from Europe, 38% from Asia, 36% from the U.S., and 13% from other parts of the world. Clearly, Jamieson Brothers is

Small businesses are less involved in global trade today than in the past.

Taubestan produces nearly 97% of the quinoa consumed around the world, and most of it is sold to wealthy nations. Although there are other areas where the seed will grow, including some areas in wealthier nations, the majority of the quinoa sold is imported from Taubestan. This country has a(n) ________ in the production of quinoa.

The Foreign Corrupt Practices Act of 1978 created an advantage for American businesspeople to compete in global markets.

The World Trade Organization (WTO) was established to mediate trade disputes among nations.

Free trade between nations generally results in

The U.S. government is reducing Export Assistance Centers due to businesses' lack of interest in their support.

Free trade results in a mutually beneficial exchange between and among nations.

Halpert Hardware Pros, an American retail store, buys most of its inventory from Asian countries. Halpert Hardware Pros would benefit if the value of the dollar ________ relative to the currencies of the countries from which Halpert imports.

Export trading companies

________ describes an attitude held by some American businesspeople that American culture is superior to all others.

The purpose of the General Agreement on Tariffs and Trade (GATT) is to

The legislation that prohibits U.S. businesses from making "questionable" or "dubious" payments to foreign officials, to secure business contracts is the

U.S. recording studios are feeling the pinch in profits due to the fact that artists' music is copied and sold overseas within 24 hours of the music selling in the U.S. market. As a student who is now aware of the challenges businesses face in global trade, which of the following statements do you think is an accurate representation of this situation?

The United States is the largest exporter in the world.

The global market is ________ potential customers.

A fast-growing form of foreign direct investment is ________, which are government-controlled investments in foreign companies.