Exam 3: Doing Business in Global Markets

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

The United States imports more products and services than any nation in the world.

Ethnocentricity means

Global trade includes the exchange of art, sports, and cultural events.

Successful multinational corporations disregard cultural differences between countries where they own property and perform business transactions.

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

Digital Life Gaming has avoided contract manufacturing its consoles abroad due to the significant start-up costs in buying land and setting up its own manufacturing plants. They have made the right decision.

A major goal of the Mercosur common market consisting of several South American countries is to better expand the movement of goods and services.

A nation has a ________ in the production of a good or service if it can produce that good or service more effectively or efficiently than it can produce other goods.

One advantage of offshore outsourcing is that consumers benefit from lower prices.

Opponents of the North American Free Trade Agreement (NAFTA) warned that it would have serious economic consequences such as the loss of U.S. jobs.

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.

Explain and provide at least one example of how legal and regulatory forces impede global trade.

The purpose of enacting some type of protectionist policy toward foreign goods is to limit competition from abroad, particularly when the country has domestic companies that produce and sell the same products and services.

Strategic alliances almost always result in one company taking over the financial interests of another company.

The motivation behind trade protectionism is

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.

Contract manufacturing is a form of outsourcing.

Engineering Chiefs, a large U.S.-based mechanical engineering firm, wants to enter the global market. Upon careful analysis of the market, they will find that global trade

Expropriation occurs when a host government takes over the assets of a foreign company.