FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 3: Doing Business in Global Markets

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 131

Multiple Choice

Review LaterAdd Note

Review Later

A United States firm recently won a large contract with a company in Malaysia, by providing the foreign nation's government officials with American cars and a promise of additional monetary gifts. Clearly, this procedure:

A) violates the Foreign Corrupt Practices Act.
B) violates the Fair and Balanced Competitive Practices Act.
C) defines the common business practices of the foreign nation and should be respected.
D) defines the terms of the business contract, and as long as both parties sign, the agreement is binding.

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 132

Multiple Choice

Review LaterAdd Note

Review Later

The "second wave" of offshore outsourcing refers to:

A) moving jobs to South America in addition to China.
B) moving skilled service jobs such as those in accounting offshore.
C) moving jobs to India in addition to China.
D) moving manufacturing jobs offshore.

E) C) and D)
F) None of the above

Correct Answer

verified

Show Answer

Question 133

Multiple Choice

Review LaterAdd Note

An important principle for firms desiring to export is:

If a protective tariff is placed on an imported product, the added cost will go to the government.

NAFTA is now over 15 years old. According to the Legal Briefcase box titled, "NAFTA or SHAFTA?" the agreement was strongly promoted by most U.S. organized labor groups. These unions still sing its praises due to the increases in manufacturing jobs in Mexico, and its ability to help deter illegal immigration.

According to the material in the "Reaching Beyond Our Borders" box in Chapter 3, which of the following statements best describes McDonald's current involvement in global markets?

Which of the following statements is a good prediction of future occurrences in global markets?

Efficient currency exchange markets have eliminated countertrade in global business transactions.

The same proven management styles used by companies in their domestic operations can be employed in their foreign subsidiaries.

Mini-Case Since he was five years old, Rhett Tenna struggled with poor eyesight. He suffered through all the names that went along with wearing eyeglasses for most of his young life. Rhett eventually switched from traditional eyeglasses to contact lens, but he always wondered why glasses were considered to be "ugly" and not fashionable. After graduation from college, Rhett set out on a lifelong goal: to make eye wear synonymous with high fashion. He opened a specialty store called "The Eyes Have It." His marketing plan was to remove the social stigma of wearing glasses, and replace it with a sense of flair and high fashion. From the day he opened his first store, Rhett's plan met with resounding success. Today, "The Eyes Have It" has grown from that single outlet to a medium-sized company with dozens of stores located in six states, and a manufacturing plant that turns out designer frames. A recent internal audit, however, suggested a problem that Rhett had not anticipated. The study indicated that the U.S. market is just about saturated and growth of "The Eyes Have It" stores will be very limited. The audit concerned Rhett until he recognized an untapped market existed overseas. If people all over the world have the same problem, the global market opportunities are fantastic! All in favor of going global say: "The Eyes Have It"! -Although he is confident of success, Rhett is concerned that social, cultural and economic differences in other nations may create some problems. He believes he should adapt his approach to these differences rather than trying to force the "American way" on foreign consumers. Rhett's attitude suggests that he wants to avoid a(n) approach to business.

Norvada is a small nation that has followed protectionist policies for many years. Which of the following would be an example of a nontariff barrier established by Norvada?

Contract manufacturing is a form of outsourcing.

The largest importer in the global market today is:

Ozark Bikes, Inc. has information that its bicycles will sell in Vietnam. In order to sell its products in Vietnam, the Vietnamese government requires Ozark Bikes to enter into a partnership, (also known as a joint venture) with a domestic firm. Both firms will assume costs and risk in the venture.

Bartering is the exchange of goods or services for other goods or services with no exchange of money traded.

The United States imports more products and services than any nation in the world.

Sociocultural differences that affect global businesses include customs, language, and religion.

When studying abroad last year, Reilly found that his U.S. dollars did not stretch as far as he had hoped. Each time he exchanged U.S. dollars for euros, he gave up more U.S. dollars in exchange for less euros. Obviously, the dollar had strength against the euro.

A major concern voiced by U.S. critics of the North American Free Trade Agreement (NAFTA) is that it would result in:

The United States currently enjoys a favorable balance of trade with the rest of the world.