Exam 5: The Global Environment

The quickest way to enter most new markets is through ____________________.

Compassion International is a children's charity that provides basic necessities,schooling,and job training for poverty-stricken children around the world.This not-for-profit organization would require which type of investment when it enters a new country?

During a recession what incentives do governments provide for international trade?

An advantage of ____________________ operations is that it is easier to enter markets with a small outlay of capital.

Rest stops in New Jersey have Burger King restaurants.The NJ Transit Authority and Burger King use a(n)____ strategy.

No organization is insulated from the effects of foreign markets and competition.

The international economic environment has three elements.What are they?

A business that has a worldwide marketplace from which it buys raw materials,borrows money,and manufactures its products and to which it subsequently sells its products is a(n)____________________ business.

To effectively plan and make decisions in a global economy,managers need to understand local market conditions and technological factors that will affect their operations.

The advantage of direct investing is

China requires foreign companies to form ____ with Chinese companies so that the Chinese get access to the latest technology.China forces a(n)____ strategy.

The ____________________ replaced GATT and absorbed its mission.

People in the U.S.,Canada,and the Netherlands tend to believe that the person comes first.This refers to Hofstede's ____ orientation.

The U.S.government became the majority shareholder in GM in 2009.The Obama administration was moving the U.S.away from a ____ economy.

Religion is part of the ____________________ environment that affects firms operating in the international environment.

eBay is based in San Jose.Buyers and sellers on the site are located around the world.eBay is a(n)____ business.

Riots in Egypt,Libya,and Syria changed the political legal environment for business because of a decrease in ____________________.

Export restraint agreements are accords signed by two parties that voluntarily limit the volume or value of goods exported to a particular country.

Briefly describe the various controls countries can impose on international trade.

The challenge with high-potential/high-growth economies is that they can be high risk.Describe the risks MNCs face entering these economies.