Exam 3: Doing Business in Global Markets

Trade protectionism is the use of government regulations to encourage the import of goods and services.

When entering a foreign market, Mountain Stream Brewery entered into an agreement with a local firm to brew and market Mountain Stream's beer. This is an example of

Effective marketing strategies focus on the product and ignore the sociocultural differences in the global environment.

When it comes to ethics, successful American businesspeople are encouraged to follow the policy of "when in Rome, do as the Romans."

The theory of ________ states that a nation should produce and sell goods to other countries that it produces most efficiently, and buy goods from other nations that they produce more efficiently.

Sovereign wealth funds are investment funds controlled by governments that hold large stakes in foreign companies.

A firm may export everything it produces overseas and still not be considered a multinational.

Opportunities for college graduates in international business continue to decrease, since it is too expensive to travel abroad.

Many U.S. companies fail to think globally.

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

Though illegal in the United States, some firms will practice dumping in order to gain a foothold in a new market.

Which of the following statements is the most accurate observation regarding multinational corporations?

American companies that produce sophisticated military weaponry are prohibited from exporting that equipment to unfriendly governments, such as Iran. This complete ban on exporting sensitive technology to specific countries is an example of a(n)

In some countries it is customary to pay government officials to secure necessary business contracts and permits. American businesses must follow U.S. law and cannot make these payments according to the

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

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

Johanna Breese, a graduate student from Carnegie Mellon, connected with the culture of Madagascar when she created lamba hoany (a native garment) with artful messages to save the more than 150 rare species of animals that inhabit Madagascar. In contrast to many Americans trying to do business abroad, Johanna successfully adapted her message to the native culture when she imprinted it on the native garment.

The ________ is the total value of a nation's exports compared to its imports measured over a specific period of time.

Sociocultural, economic, and legal/regulatory hurdles cause significant challenges in global trade.

Which of the following statements is the best description of comparative advantage?