Exam 3: The Global Marketplace

In a(n)________ strategy,managerial control is highly centralized and major decisions for the company's international operations are made at the company's headquarters in the home country.

Compare and contrast a multidomestic strategy with a global strategy.

France and Germany rely on a legal system known as ________,in which legal parameters are specified in detailed legal codes.

Legal systems in Great Britain and the U.S.are based on ________ law.

Electrobox is a firm that manufactures commercial kitchen equipment.The firm decides to enter China and bonds with a Chinese firm to form a new company named Electrokitchen.This is an example of a(n)________.

Taxes,surcharges,or duties levied against imported goods are known as ________.

Strong dollar will lower the cost of goods that the U.S.exports.

John,a jewelry maker in Montana,receives international orders through his website.He ships the products from the production plant at Montana after receiving confirmed orders.This scenario is an example of ________.

Economies of scale are savings from not buying too much of any one thing.

Describe the importance of the World Trade Organization.

Explain how companies using a transnational strategy manage their business.

Charles Associates is a U.S.company and has a central production plant in the U.S.(Currency: U.S.dollar).It imports capital equipment and raw materials from Italy and Germany (Currency: Euro).The company exports its products to China (Currency: Renminbi),Japan (Currency: Yen),and India (Currency: Rupee).Which of the following changes in the exchange market is disadvantageous to Charles Associates?

A firm wants to enter foreign markets to expand its business.However,it does not want to make significant investments before assessing foreign conditions.Which of the following strategies is best suited to enter a foreign market slowly and then design the firm's product offerings?

All U.S.companies are bound by the Foreign Corrupt Practices Act.

In the ________ strategy,a company creates highly independent operating units in each new country and gives local managers a great deal of freedom to run their operations almost as though they are independent companies.

A country's balance of trade is the total value of its imports less the total value of its exports.

Drobex Technologies is a manufacturer of electronic home appliances.The company has operations in 17 countries.The company operates as an independent unit in each of these countries and the head of operations in each unit makes decisions themselves.Drobex is following a(n)________ strategy.

________ agreements entitle one company to use some or all of another firm's intellectual property in exchange for a royalty payment.

Exporting is the least risky form of international business activity.

The European Union has created a currency of its own.