Exam 3: Doing Business in Global Markets

The introduction of standardized international laws regulating business organizations has greatly simplified global trade.

While studying abroad, Joe found that his U.S. dollars did not stretch as far as he had hoped. Every time he exchanged U.S. dollars for euros, he gave up more dollars in exchange for fewer euros. Obviously, the dollar was weak against the euro.

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

Efficient currency exchange markets have eliminated countertrade in global business transactions.

Often, the strategy of common markets is debatable, but GATT is certain that such alliances do not prohibit individual member nations from expanding globally.

Companies may have several reasons for creating joint ventures. Which of the following statements is one reason why firms may decide to form a joint venture?

Today, over 90% of the companies doing business globally believe it is important for their employees to have experience working in other countries.

Belgium, Hungary, Sweden, and Germany are all members of the EU. Which of the following statements is an accurate description of trade between these nations?

Which of the following sociocultural forces can have a significant impact on global business operations?

Many business experts contend that ________ will likely be the growth market of the future.

A(n) ________ is a firm that has made sizeable investments and has a physical presence in several foreign countries as a manufacturer and marketer of products and services.

Global financial markets operate under a system of ________, where the supply and demand for various currencies will determine their value at any moment in time.

In the past few decades, U.S. manufacturers shifted focus from manufacturing and assembling products, to the design and architecture of products. Now, a new shift: the offshore outsourcing of design and architecture can be an even more serious disruption to the U.S. economy.

Under mercantilism, the basic economic idea was to achieve a favorable balance of trade.

Candace is a flight attendant for a large, international airline. While in China, Candace often finds look-alikes in famous designer brands of watches, handbags, clothing, and golf clubs. In fact, she'll do her Christmas shopping there and will even buy good-quality items for auctioning at her son's preschool events back in the U.S. Candace's actions demonstrate

The appeal of global marketing strategies is that they all involve the same amount of risk.

According to current U.S. laws, American firms are prohibited from participating in joint ventures with foreign firms.

If a nation's currency is weak, people may have to fall back on

________ is the use of government regulations to limit the import of goods and services.

Erin, an American citizen, says that her laptop was made in Japan. Erin purchased a(n)