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 Flashcards

Question 141

Multiple Choice

Review LaterAdd Note

Review Later

As a business strategy, the strategy behind "dumping" is to ____________.

A) gain a foothold in a new market
B) better utilize e-commerce opportunities
C) avoid trade protectionist laws
D) achieve eligibility for foreign aid

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

Correct Answer

verified

Show Answer

Question 142

Multiple Choice

Review LaterAdd Note

Review Later

Ethnocentricity means:

A) "When in Rome, do as the Romans!"
B) You believe your culture is superior to others.
C) Cultural awareness.
D) A trend toward accepting other cultures and trying various foods and religions to see if they fit your lifestyle.

E) A) and D)
F) B) and D)

Correct Answer

verified

Show Answer

Question 143

True/False

Review LaterAdd Note

Leigh has created a technique for drying flowers that retains the vibrant color of certain flowering plants. Although out of style in the U.S., dried flower arrangements are still highly sought after in several European and Asian nations. It is difficult to preserve the ingredients that go into her formula for more than a month. She decides to partner with firms in other nations to make and sell the formula, but you suggest she license the formula to foreign companies and agree to royalties when they create the formula and sell it. Your advice makes better sense.

Governments directly participate in global markets through sovereign wealth funds.

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"! -The company was informed by the Japanese Ministry of Trade that they could only export 1.5 million pairs of eyeglasses to the Japanese market during a given year. The Japanese have imposed a(n) :

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"! -Rhett spoke with a Korean company that said it might be interested in producing his products in their market. They would pay him a royalty for what they sold and would bear all the start-up expenses of this effort. This Korean company is proposing a:

A Mexican firm has agreed to trade petroleum to an American importer in return for U.S.-made computers. This arrangement is an example of:

The objectives of the North American Free Trade Agreement (NAFTA) include allowing free immigration among Canada, Mexico, and the U.S.

Opportunities for college graduates in international business continue to decrease as it gets more expensive to travel abroad.

The federal government created ___________ to help small and medium-sized businesses get involved in exporting.

An exchange rate is the value of one nation's currency relative to the currencies of other nations.

Restrictive standards that detail exactly how a product must be sold in a country are examples of protective tariffs.

While Asia represents an important source of U.S. imports, few export opportunities exist for U.S. firms to sell goods and services to Asian consumers.

______________ was an 18th-century belief that a nation should try to sell more goods to other nations than it buys from them.

A joint venture is a partnership in which two or more companies join to undertake a major project. All parties commit financing and risk to the project.

Licensing is a popular strategy because:

In volume of exports, the two leading nations are:

________ tariffs are designed to raise money for the government.

Contract manufacturing requires heavy start-up costs by the domestic company.

Current trade data indicates that the nation of Bogusland exports more to other nations than it imports. Bogusland has: