BEO Chp 3 : SB Competing in Global Markets

There are over 7.9 billion potential customers in 194 countries around the globe. Therefore, ______.

1. Canada should shelter itself from competitors

2. it is important to conduct business globally

3. conducting business globally is not an increasing trend

4. there are too many differences to be able to successfully conduct business globally

it is important to conduct business globally

______ is defined as the movement of goods and services among nations without economic or political barriers.

1. Trade deficit

2. Free trade

3. Free export

4. Global trade

Free Trade

__________ advantage theory states that a country should sell to other countries those products it produces most efficiently and effectively, and buy from other countries those products that it cannot produce as effectively or efficiently.

1. product exporting

2. free trade

3. comparative advantage

4. absolute

comparative

Small businesses contributed between 51 and 51 percent to Canada's ______ between 2015 and 2019.

1. pension fund

2. unemployment

3. gross domestic product

4. inflationary pressures

gross domestic product

The agency that deals with importers across a whole range of goods and services that enter Canada is called ______.

1. Import Protection Agency

2. The Canada Border Services Agency

3. The Canadian Revenue Agency

4. The Canadian Global Business Agency

The Canada Border Services Agency

Which of these are important reasons to do business globally? More than one answer may be correct.

There are many potential customers.

Foreign markets offer different resources and talents.

Often, the competition a business faces in foreign markets is _______ intense than it is at home.

less

Small businesses accounted for Blank______ % of net employment growth between 2020 and 2021 in the private sector.

69

What are the two indicators nations rely on to measure global trade?

Balance of trade and balance of payments

Which country is Canada's top trading partner?

USA

Tapping into the emerging economies of the BRIC nations should not be a priority for a developed country like Canada.

FALSE

Nearly every item which you can sell in Canada can also be sold abroad.

TRUE

The two indicators nations rely on to measure global trade are balance of _______ and balance of _______.

trade and payments

Key business strategies used to compete in global markets include Blank______. more than one is correct

franchising

engaging in domestic direct investment

contract manufacturing

licensing

contract manufacturing

licensing

franchising

What is the global strategy in which a firm allows a foreign company to produce its product in exchange for a fee?

Licensing

Which of these are true of the emerging economies (BRICs)? More than one answer may be correct.

• The emerging economies are experiencing high growth.

• The emerging economies are suffering from detrimental indebtedness.

• The emerging economies are suffering from severe inflation.

• The emerging economies are seeing rapid increases in living standards.

• The emerging economies are experiencing high growth.

• The emerging economies are seeing rapid increases in living standards.

How do the first export sales for a small business generally come about?

They are generally unsolicited.

______ is a contractual agreement whereby someone with a good idea for a business sells others the rights to use the business name and sell a product or service in a given territory in a specified manner.

franchising

Key business strategies used to compete in global markets include licensing, exporting, franchising, contract manufacturing, creating international ______ ventures and _______ alliances, and engaging in foreign direct investment.

joint, strategic 

________ manufacturing occurs when a foreign company produces private-label goods to which a domestic company then adds its own brand name or trademark.

contract

A joint venture is a partnership in which two or more companies, often from different countries, ______ to undertake a major project.

join

Foreign ______ Investment is defined as the buying of permanent property and businesses in foreign nations.

direct

The word ______ refers to the set of values, beliefs, rules, language, and institutions held by a specific group of people.

Multiple choice question.

culture

Franchising is a contractual agreement whereby someone with a good idea for a business ______ the rights to use a business name and sell a product or service in a given territory in a specified manner.

1. subsidizes

2. sells others

3. correct

4. imports

5. exports

sells others

A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trade mark is called Blank______.

1. foreign direct investment

2. licensing

3. contract manufacturing

4. exporting

contract manufacturing

The Blank______ is defined as the value of one nation's currency relative to the currencies of other countries.

exchange rate

______ is defined as the buying of permanent properties or businesses in foreign nations.

Foreign direct investment

What type of forces lead to differences in antitrust rules, labour relations, patents, copyrights, trade practices, taxes, product liability, and child labour?

Legal and regulatory forces

The fact that houses in Canada use a different kind of electrical system then many other developing nations is one example of a(n) Blank______ barrier that a manufacturer of heating systems would face when attempting to export their products.

1. socio-political

2. environmental

3. legal

4. logistical

environmental

Trade _______ is the use of government regulations to limit the import of goods and services such as import tariffs and quotas.

protectionism

The General Agreement on _________ and Trade is a global forum for reducing trade restrictions.

Tariffs

Which of these is a function of the IMF?

Making short-term loans to countries having financial problems

Legal and regulatory forces can create problems in the global market because Blank______.

1. transportation costs differ between countries

2. consumer tastes differ between countries

3. laws and regulations vary greatly between countries

4. consumer values are the same in different countries

laws and regulations vary greatly between countries

______ are organizations of commodity-producing countries.

Producers’ cartels

The lack of reliable wireless communication infrastructure in some parts of the world represent a ______ environment , Incorrect Unavailable barrier to global business.

technological

What is the definition of trade protectionism?

1. The use of government regulations to limit the import of goods and services

2. A limit on the number of products in certain categories that a nation can import

3. The use of government regulations to expand free trade

4. A tax imposed on imports

The use of government regulations to limit the import of goods and services

The development of a common market changes the way goods and services are traded within that market. Which of these is/are an example of such changes?  More than one answer may be correct.

• No internal tariffs

• Lowering of tariffs by 38% worldwide

• Coordinated laws to facilitate exchange among members

• Common external tariffs

Common external tariffs

Coordinated laws to facilitate exchange among members

No internal tariffs

In 1948, government leaders from 23 nations formed a global forum for reducing trade restrictions on goods, services, ideas, and cultural programs. What was the title of this forum?

1. The North American Free Trade Agreement (NAFTA)

2. The BRIC Agreement (BRICA)

3. The General Agreement on Tariffs and Trade (GATT)

4. The World Trade Organization (WTO)

The General Agreement on Tariffs and Trade (GATT)

______ means contracting with other companies to do some or all of the functions of a firm, rather than providing them within the company; whereas shifting manufacturing and services from domestic businesses to primarily low-wage markets outside of Canada is referred to as ______.

Outsourcing; offshoring

The ________ ________ _________(IMF) is an international bank supported by its members.

International Monetary Fund

Producers' cartels are organizations of _______-producing countries.

commodity

A(n) ________ ________ (also called a trading bloc) is a regional group of countries with a common external tariff, no internal tariffs, and coordinated laws to facilitate exchange among members.

common market

_________ means contracting with other companies to do some or all of the functions of a firm, rather than providing them within the company; whereas shifting manufacturing and services from domestic businesses to primarily low-wage markets outside of Canada is referred to as ________

outsoucing , offshoring

The first export sales for a company often come about from ________ sales.

unsolicited

Common markets are also referred to as what?

1. Trading partners

2. Trading blocs

3. Joint ventures

4. Strategic alliances

1. Trading blocs

A Blank______ is a partnership in which two or more companies, often from different countries, join to undertake a major project.

Multiple choice question.

1. joint venture

2. strategic alliance

3. contract manufacturing agreement

4. foreign subsidiary

1. joint venture