Exam 1 review chapter 5

What is the World Trade Organization (WTO)?

A global association of member countries that promotes free trade

You are the operations manager of the North American division of a Brazilian soft-drink maker. Its newest product is Yukka Cola, which is flavored with an extract of the yucca plant. The new drink has received less than enthusiastic reception. What would you advise?

Adopt a more appealing name.

Which of the following characteristics relates to the U.K. Bribery Act?

All organizations with business operations in the United Kingdom can be held liable for bribery, even if the bribery did not occur within the United Kingdom.

Which of the following characteristics relates to countertrade agreements?

Exporting that involves bartering products for other products instead of for currency

You are working for a U.S. oil producer in the tiny oil-rich kingdom of Freedonia. It is the local business practice to provide payoffs in cash and expensive gifts to government officials for the right to extract crude oil for export. To engage in this practice would be a violation of the

Foreign Corrupt Practices Act.

Which of the following refers to the market value of a nation's total output of goods and services for a given period?

Gross domestic product (GDP)

What term describes the physical facilities that support a country's economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems?

Infrastructure

The poorer and less economically advanced, less-developed countries, characterized by their low per capita income, include all of the following EXCEPT

Japan.

All of the following are referred to as industrialized nations EXCEPT

Mexico.

What term describes an international economic organization comprised of 30 countries that accept the basic principles of free-market economies and representative democracy, and that recommend and promote policies to improve the well-being of consumers and societies across the world?

Organization of Economic Cooperation and Development (OECD)

What name is given to the political and economic agreement among the countries of Bolivia, Argentina, Brazil, Venezuela, Uruguay, and Paraguay?

Southern Common Market

Which of the following refers to a partnership formed to create competitive advantage on a worldwide basis?

Strategic alliance

What is an embargo?

The suspension of trade in a particular product by the government

If a Mexican plant assembles, processes, or repairs components for a U.S. company, on which the company pays a tariff only on the value added to the product in Mexico, the Mexican plant is a

maquila.

You are the vice president of sales of Walker Shoe Corp., manufacturer and marketer of high-quality durable shoes. You would like to gain a foothold in the developing market in the country of Bengala, but lack the resources and expertise. The Bengalese government has made an offer to share the cost and operation of the project. This is an example of

a joint venture.

A tariff that is based on the value of an item describes

an ad valorem tariff.

Understanding that Arab businessmen tend to stand face to face with the object of their conversation reveals the importance of knowing another culture's use of

body language.

When Reebok has some of its athletic shoes produced by a Korean company, but the Reebok name still appears on the shoes, this illustrates

contract manufacturing.

Leading is an especially complex task for managers working outside their own country for all of the following reasons EXCEPT

different styles of native dress.

The functions of a trading company include all of the following EXCEPT

licensing company names, products, and patents.

According to Hofstede's cultural dimensions theory, some national cultures like Japan have a very time horizon, while other countries, such as the United States, want things to happen .

long; very quickly

You are the executive vice president of Banana Computer, Inc. You have a competitive machine, but your major competitor has the benefit of large-scale production, making its products less expensive to manufacture. In order to remain price-competitive, you send your parts and subassemblies to Mexico for the final stage of assembly, thereby taking advantage of

outsourcing.

According to the text, many foreign nations have laws that are different from those in the United States, including all of the following EXCEPT

prohibition of foreign investment.

Some Americans argue that should be used to keep domestic wages high and unemployment low.

protective tariffs

The translation of product names can be a crucial factor in the success or failure of a foreign marketing effort because of

sociocultural differences.