Question 1

A more recent free-trade agreement among Cost Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the U.S. is known as the Central American Free Trade Agreement. Its strategy is to open new markets for all member countries and to lower tariffs among participating nations.

Accepted Answer

A) True 
 B)False

Question 2

People from other nations sometimes comment on the ethnocentric attitudes of U.S. businesspeople. This indicates that American businesspeople:

Accepted Answer

A)   follow the philosophy of "when in Rome, do as the Romans."
B)   quickly accept the suggestions and ideas of others.
C)   believe that American culture is superior to all others.
D)   celebrate the many ethnic groups that make up American life.E) A) and D)
F) B) and C)

Question 3

The introduction of standardized international laws regulating business organizations has greatly simplified global trade.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements describes laws and regulations in global markets?

Accepted Answer

A)   No central system of law exists.
B)   The World Trade Organization reigns supreme and dictates law for all global markets.
C)   Most trading partners will default to the laws that govern the seller's home country.
D)   With the exception of labor relations, most laws are pretty standard across global markets.E) A) and D)
F) B) and C)

Question 5

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.

Accepted Answer

A)   comparative advantage
B)   absolute advantage
C)   mercantilism
D)   bilateral advantageE) A) and C)
F) A) and B)

Question 6

In global markets, no central system of law exists.

Accepted Answer

A) True 
 B)False

Question 7

Some governments initiate restrictive standards that detail exactly how a product must be sold in a country. Trade experts call these restrictions ________________.

Accepted Answer

A)   monetary tariffs
B)   countertrade policies
C)   nontariff barriers
D)   export constraint policiesE) A) and B)
F) A) and C)

Question 8

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 contacts, 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 eyewear 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"!
-Initially, Rhett believed he should maintain his production facilities within the United States and simply export his designer eyeglass frames to foreign sellers. However, he lacked expertise in exporting. Rhett decided to see if the federal government could provide any help by contacting a(n) :

Accepted Answer

A)   World Trade Center.
B)   Export Assistance Center.
C)   Federal Reserve Bank.
D)   U.S. Export Savings Bank.E) C) and D)
F) All of the above

Question 9

Jill works as a flight attendant for an international airline. While in China, it is convenient for Jill to find look-alikes in famous brands of watches, purses, clothing, and golf clubs. In fact, she does her Christmas shopping there and even buys good quality items for auctioning at her son's pre-school events back in the U.S. Jill's actions:

Accepted Answer

A)   demonstrate a continual problem with product piracy in China.
B)   demonstrate how expensive it is to trade with China. Persons who travel there are really the only ones who can benefit from China trade.
C)   demonstrate the low level of economic development in China, and the fact that only tourists can afford to purchase name brand goods in that nation.
D)   demonstrate the World Trade Organization's encouragement of China to increase its production of counterfeit goods because there is a high demand for these globally.E) None of the above
F) A) and B)

Question 10

Explain and provide at least one example of how legal and regulatory forces impede global trade.

Accepted Answer

In global markets, there is no central s...

Question 11

In the past, foreign companies have adapted to U.S. culture more easily than U.S firms have adapted to foreign cultures.

Accepted Answer

A) True 
 B)False

Question 12

_________________ differences such as insufficient electrical power and transportation systems can present special problems for U.S. firms when attempting to enter global markets.

Accepted Answer

A)   Physical and environmental
B)   Legal and regulatory
C)   Economic
D)   GovernmentalE) C) and D)
F) A) and B)

Question 13

When studying abroad last year, Blake 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. The exchange rate indicates:

Accepted Answer

A)   the dollar has gained strength against the euro.
B)   the euro is weak against the U.S. dollar.
C)   the euro has gained strength against the dollar.
D)   the demand for dollars is stronger than the demand for euros.E) C) and D)
F) A) and B)

Question 14

Exporting is the selling of products to another country.

Accepted Answer

A) True 
 B)False

Question 15

As surgical procedures become extremely costly (upwards of $100,000 per surgery) , which of the following health benefits strategies is being considered, if not implemented, by American companies? According to the Making Ethical Decisions box:

Accepted Answer

A)   U.S. companies are asking employees to seek out foreign medical students who are trained in the U.S. and willing to perform surgeries at a discount price.
B)   U.S. companies are asking employees to choose between taking a trip abroad or proceeding with expensive surgical procedures. The company is willing to pay for a trip, which may cost about $10,000, rather than a surgery, which may cost $100,000.
C)   Patients who elect to have surgeries performed abroad are finding the quality of these surgeries to be sub-standard compared to the quality and care they receive in the U.S. The lesson is to think twice about a company whose benefits prescribe that you have your surgeries abroad.
D)   U.S. companies are willing to pay for surgical procedures performed in nations such as Mexico, South Korea, and Thailand, as opposed to the same procedure in the U.S. The difference in cost is significant, and the expertise and accommodations are similar if not better.E) A) and B)
F) A) and C)

Question 16

A benefit of contracting with export trading companies is:

Accepted Answer

A)   They are the experts in establishing trading partners abroad, and negotiating all the details in retaining customers.
B)   They are experts in staying out of the financial transactions of establishing new markets.
C)   They will always assume the risk if your product does not sell to the foreign customer.
D)   They keep you legal because they serve as the franchisor and make certain that your products meet ISO requirements.E) A) and D)
F) All of the above

Question 17

On a number of issues, the strategy behind common markets is debatable, but GATT is certain that such alliances do not prohibit individual member nations from expanding globally.

Accepted Answer

A) True 
 B)False

Question 18

Yesterday, Frank was trying to use his new laptop features, with only a negligible amount of success. His warranty said that he had three months of free technical support, so he promptly called the tech support number. After several minutes, he finally got through to someone who spoke English (the same language he speaks), but the dialect was still difficult to understand. He shook his head as he tried to listen carefully to every word the guy at the help desk provided, and thought to himself, "There are some pros and cons to outsourcing. I'm not certain the service is adding value for the customer."

Accepted Answer

A) True 
 B)False

Question 19

Describe and provide examples of four different strategies for reaching global markets.

Accepted Answer

There are several strategies a firm can ...

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 3: Doing Business in Global Markets

Correct Answer
verified

People from other nations sometimes comment on the ethnocentric attitudes of U.S. businesspeople. This indicates that American businesspeople:

Correct Answer
verified

A benefit of contracting with export trading companies is:

Correct Answer
verified

When studying abroad last year, Blake 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. The exchange rate indicates:

Correct Answer
verified

Describe and provide examples of four different strategies for reaching global markets.

Correct Answer
verified
There are several strategies a firm can ...
View Answer

Some governments initiate restrictive standards that detail exactly how a product must be sold in a country. Trade experts call these restrictions ________________.

Correct Answer
verified

In the past, foreign companies have adapted to U.S. culture more easily than U.S firms have adapted to foreign cultures.

Correct Answer
verified

On a number of issues, the strategy behind common markets is debatable, but GATT is certain that such alliances do not prohibit individual member nations from expanding globally.

Correct Answer
verified

Explain and provide at least one example of how legal and regulatory forces impede global trade.

Correct Answer
verified
In global markets, there is no central s...
View Answer

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.

Correct Answer
verified

A more recent free-trade agreement among Cost Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the U.S. is known as the Central American Free Trade Agreement. Its strategy is to open new markets for all member countries and to lower tariffs among participating nations.

Correct Answer
verified

Which of the following statements describes laws and regulations in global markets?

Correct Answer
verified

_________________ differences such as insufficient electrical power and transportation systems can present special problems for U.S. firms when attempting to enter global markets.

Correct Answer
verified

The introduction of standardized international laws regulating business organizations has greatly simplified global trade.

Correct Answer
verified

In global markets, no central system of law exists.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

As surgical procedures become extremely costly (upwards of $100,000 per surgery) , which of the following health benefits strategies is being considered, if not implemented, by American companies? According to the Making Ethical Decisions box:

Correct Answer
verified

Exporting is the selling of products to another country.

Correct Answer
verified

Correct Answer
verified

Exam 3: Doing Business in Global Markets

Correct AnswerverifiedShow Answer

People from other nations sometimes comment on the ethnocentric attitudes of U.S. businesspeople. This indicates that American businesspeople:

Correct AnswerverifiedShow Answer

A benefit of contracting with export trading companies is:

Correct AnswerverifiedShow Answer

When studying abroad last year, Blake 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. The exchange rate indicates:

Correct AnswerverifiedShow Answer

Describe and provide examples of four different strategies for reaching global markets.

Correct AnswerverifiedThere are several strategies a firm can ...View AnswerShow Answer

Some governments initiate restrictive standards that detail exactly how a product must be sold in a country. Trade experts call these restrictions ________________.

Correct AnswerverifiedShow Answer

In the past, foreign companies have adapted to U.S. culture more easily than U.S firms have adapted to foreign cultures.

Correct AnswerverifiedShow Answer

On a number of issues, the strategy behind common markets is debatable, but GATT is certain that such alliances do not prohibit individual member nations from expanding globally.

Correct AnswerverifiedShow Answer

Explain and provide at least one example of how legal and regulatory forces impede global trade.

Correct AnswerverifiedIn global markets, there is no central s...View AnswerShow Answer

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.

Correct AnswerverifiedShow Answer

A more recent free-trade agreement among Cost Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the U.S. is known as the Central American Free Trade Agreement. Its strategy is to open new markets for all member countries and to lower tariffs among participating nations.

Correct AnswerverifiedShow Answer

Which of the following statements describes laws and regulations in global markets?

Correct AnswerverifiedShow Answer

_________________ differences such as insufficient electrical power and transportation systems can present special problems for U.S. firms when attempting to enter global markets.

Correct AnswerverifiedShow Answer

The introduction of standardized international laws regulating business organizations has greatly simplified global trade.

Correct AnswerverifiedShow Answer

In global markets, no central system of law exists.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

As surgical procedures become extremely costly (upwards of $100,000 per surgery) , which of the following health benefits strategies is being considered, if not implemented, by American companies? According to the Making Ethical Decisions box:

Correct AnswerverifiedShow Answer

Exporting is the selling of products to another country.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There are several strategies a firm can ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
In global markets, there is no central s...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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