Exam 3: Doing Business in Global Markets

________ 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.

Define offshore outsourcing and explain its pros and cons.

Countries often use trade protectionism measures to protect their domestic industries from foreign competition.

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.

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.

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

Monique's Unique Boutique sells clothing from around the world in the U.S. Monique regularly travels overseas to find the best and most unusual shirts, dresses, and pants that foreign producers have to offer. Monique is a(n)

The federal government created ________ to help small and medium-sized businesses get involved in exporting.

A firm looking to enter a foreign market with a limited investment should consider licensing.

U.S. exports boost the U.S. economy.

The value of goods imported into Spain exceeds the value of Spanish exports. This indicates that Spain

The largest importer in the global market today is

Having recently found sources of oil on their own land, the newly established nation of Brotherton enacted a tariff on imported petroleum in order to raise money for their new government. This trade restriction is an example of a ________ tariff.

Though not as specific or formal as tariffs, nontariff barriers can be just as detrimental to free trade.

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

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

American businesspeople often fail to adapt to foreign markets because they feel that the American culture is superior to other cultures in the world.

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

Rhett spoke with a Korean company that said it might be interested in producing his products in their market. They would pay him a royalty for what they sold and would bear all the start-up expenses of this effort. This Korean company is proposing a(n)

A major concern voiced by U.S. critics of the North American Free Trade Agreement (NAFTA) was that it would result in