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Exam 3: Doing Business in Global Markets

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Question 71

Multiple Choice

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describes an attitude held by some American business people that American culture is superior to all others.

A) Primary culture
B) Ethnocentricity
C) Cultural institutionalism
D) Social myopia

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

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Question 72

Multiple Choice

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Which of the following nations has joined the U.S., Japan, and the EU as a key driver of the world economy?

A) Thailand
B) Brazil
C) Russia
D) China

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

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Question 73

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When Nestlé, a Swiss company, purchased Ralston Purina, a U.S. company, Ralston Purina became a foreign licensee.

Free trade between nations generally results in:

General Electric's (GE) website recently noted, "Russia has been one European country in which GE has made significant investments. GE is one of the largest foreign companies in Russia, operating multiple businesses including an equipment fleet with more than 1,500 large units." With physical presence in Russia, Argentina, Australia, Belgium, Greece, Kenya, Canada and other countries, GE is an example of a multinational company.

According to Reaching Beyond our Borders box, the McDonald's Corporation is king of franchising due to its ability to adapt to other cultures.

The country of New Florentina mines more fluorite each year than it needs for its own manufacturing purposes. Recently, a neighboring country complained that its manufacturing sites could buy fluorite from New Florentina cheaper than they could buy it from its own mines. A government trading expert's claim that New Florentina is dumping fluorite onto its neighbor's market is probably accurate.

U.S. firms that produce sophisticated military hardware are prohibited from exporting that equipment to "unfriendly" governments, such as Iran. This complete ban on exporting sensitive technology to specific countries is an example of a(n) :

A country has an absolute advantage if it has a monopoly in the production of a specific product or is able to produce it more efficiently than all other nations.

Free trade results in a mutually beneficial exchange between and among nations.

A fast-growing form of foreign direct investment is which are government controlled investments in foreign companies.

One advantage of licensing is the relatively low cost of entering a foreign market.

According to Reaching Beyond our Borders box, the king of global franchising is:

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.

While the U.S. is a large exporter, Germany exports a higher percentage of their GDP.

Global trade is the exchange of goods and services between countries.

Which of the following sociocultural forces can have a significant impact on global business operations?

An example of a U.S. import would be the purchase of oil by U.S. companies from Saudi Arabia.

Contract manufacturing is a low cost way for GAP to outsource the production of its clothing designs.

As a form of franchising, Sovereign Wealth Funds are getting very little attention as a strategy for doing business in foreign markets.