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Exam 3: Doing Business in Global Markets

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Question 171

Multiple Choice

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Having recently found sources of oil on their own land,the infant nation of Lancerland enacted a tariff on imported petroleum in order to raise money for their new government.This trade restriction is an example of a(n) ________ tariff.

A) revenue
B) protective
C) percentage
D) fixed

E) A) and C)
F) A) and D)

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Question 172

Multiple Choice

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Which of the following is considered when calculating a country's balance of payments?

A) military expenditures
B) state unemployment
C) domestic inflation rates
D) foreign inflation rates

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

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Question 173

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If you travel to Mexico and the exchange rate is 12 pesos for one U.S.dollar,the peso is said to have strength against the dollar because you can get so many more pesos that you can dollars.

The __________________ is a firm that has made sizeable investments and has a physical presence in several foreign countries as a manufacturer and marketer of products and services.

The legislation that prohibits U.S.businesses from making "questionable" or "dubious" payments to foreign officials,to secure business contracts is the ______________.

Since 1975,the U.S.has had a(n) ___________.

One advantage of free trade is:

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.

Compared to many other industrialized countries,the United States has historically exported a lower percentage of its products than other countries do.

Since the approval of the North American Free Trade Agreement (NAFTA),the value of U.S.exports to Mexico and Canada has increased.

The appeal of global marketing strategies is that they all involve the same amount of risk.

Countries often use trade protectionism measures to protect their domestic industries from foreign competition.

Absolute advantage is the basis for most global trade today.

Imported wines such as Pinot Noirs from France or Italy often sell at a higher price than wine from Napa Valley,California.This is due to the protective tariff importers pay for the foreign wine.

Reviewing the recent experience of the United States in global markets reveals that the U.S has:

A nation has a ___________ in the production of a good or service if it can produce that good or service more effectively or efficiently than it can produce other goods.

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:

Successful multinational corporations disregard cultural differences between countries where they own property and perform business transactions.

A major advantage of licensing is:

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.