Exam 3: Doing Business in Global Markets

The two basic types of tariffs are

A free-trade agreement is likely to result in

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.

Although he is confident of success, Rhett is concerned that social, cultural, and economic differences in other nations may create some problems. He believes he should adapt his approach to these differences rather than trying to force the "American way" on foreign consumers. Rhett's attitude suggests that he wants to avoid a(n) ________ approach to business.

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?

In order to prevent dumping, U.S. law stipulates that foreign firms selling similar products as domestic firms to U.S. customers must charge at least 10% more than what U.S. firms charge.

In order to enjoy the highest standard of living possible, comparative advantage theory states that all nations should strive to become self-sufficient.

Importing is the selling of products to another country.

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

There's a problem overseas of the reproduction of music originally recorded by popular American artists. It seems that a recording made in the U.S. can be copied within a couple of hours and then immediately sold abroad. The U.S. government is able to readily prosecute these foreign companies.

A devaluation of the U.S. dollar would make American goods cheaper to foreign buyers.

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

According to the theory of comparative advantage, a country should buy from other countries those goods it produces most efficiently.

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 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

Last year, the nation Hasalot reported that it had a favorable balance of trade even though it imported $9 billion worth of goods. This indicates that Winstone

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

The balance of payments measures the inflows and outflows of money from tourism, foreign aid, military expenditures, and foreign investments as well as flows resulting from exports and imports.

Which of the following statements describes laws and regulations in global markets?

Since patent and copyright laws are the same in all nations, they are not of much impact to firms that compete globally.