Exam 3: Doing Business in Global Markets

Through licensing, domestic firms give foreign manufacturers/producers the right to produce their product and use their trademark in exchange for royalties.

A company in Mexico recently agreed to trade coal to an American importer in return for American-made cars. This arrangement is an example of

Since the approval of the North American Free Trade Agreement (NAFTA), the value of U.S. exports to Mexico and Canada has increased.

Denmark requires foreign companies that sell butter in Denmark to sell it in cubes, not tubs. This type of requirement is known as a

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

A free-trade agreement among Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the U.S. is known as the Central American Free Trade Agreement. Its strategy is to open new markets for all member countries and to raise tariffs among participating nations.

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

Profitable opportunities in global markets are diminishing for small and medium-sized businesses.

India and Russia are emerging markets that present enormous business opportunities.

When Anhueser Busch InBev sells Budweiser beer made in St. Louis, MO, to Germany, the sales of its product would be classified as a U.S. ________.

While franchising is popular in the United States, it is not an accepted strategy for firms in the global market.

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

As a business strategy, the strategy behind dumping is to

Today, there are more countries that have some form of absolute advantage in a product or service, than years ago.

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

The ________ represents the first attempt to establish a truly global mediation center to resolve international trade disputes.

Some governments initiate restrictive standards that detail exactly how a product must be sold in a country. Trade experts call these restrictions

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

The concept of free trade means