Exam 6: Serving Global Markets

A manufacturer retains more control over the export process when it deals with an export-management company than if it were to sell the goods outright to an export-trading company.

Why is global trade important to the Canadian economy?

In a countertrade, products of one country are exchanged for products of another instead of cash.

Although the European Union has attempted to simplify transactions among members, marketers still face the challenges of the fact that there is no uniform postal or telephone system.

What is countertrade? Why would a country choose to countertrade?

What is a characteristic that many North American economies have for products that result in increased importance of global trade?

Offset agreements combine small firms with major international companies; the larger company acts as the primary contractor, and the smaller firm supports the larger with specialized exporting knowledge.

What accounts for 70 percent of Canada's gross domestic product?

Changing both the product and promotion strategy to fit a foreign market is called global adaptation.

Trade barriers fall into two distinct categories defined as tariffs and administrative.

Global trade is NOT as important to Canada and the United States due to the fact that these two economies are still in the infancy stage.

Who is the largest private employer in the world?

What do ISO 14000 standards set requirements for?

What is the ideal way for a nation to stop a foreign company from dumping?

Canadian firms operating in the international marketplace are affected by a legal environment, including Canadian law, international law, and legal requirements of host countries.

The ISO 14000 series sets standards for operations that minimize harm to the environment.

Dumping is the practice of selling a large volume of product into a foreign market at prices lower than the company's own domestic market.

In the currency market, the exchange rate measures how quickly a country can exchange a currency back to its domestic central bank.

The largest category, with respect to dollar amount, that Canada measures service exports and imports is which of the following?

Tariffs designed to protect domestic industries can often end up penalizing domestic consumers.