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Exam 3: Doing Business in Global Markets

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Question 161

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A risk unique to firms with direct investment in a foreign county is the potential takeover of the firm's assets by the government of that country. This takeover is called a(n) :

A) hostile takeover.
B) political bias.
C) appropriation.
D) expropriation.

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

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Question 162

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An influential foreign government official approached your firm requesting a large sum of money. In return for this bribe, the official promises that your firm will receive preferential treatment in future government contracts. You refuse the request, explaining that the Act of the United States prohibits you from making such payments.

A) Federal Trade Commission
B) Sherman Anti-trust
C) Foreign Corrupt Practices
D) Celler-Kefauver

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

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Question 163

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Fred Bergsten of the Institute for International Economics that every $1 billion of U.S. exports:

In 1999, the European Economic Community adopted a common currency known as the Euro.

Idle Time Gaming, Inc. needed silicon wafers that it knew could be massed produced efficiently by Silicon City, Inc., a start-up firm in India. The Indian company needed MSG (metallurgical grade silicon) in order to make the wafers which it knew it could get from a Chinese firm. The Chinese firm (mostly owned by the Chinese government) agreed to supply the silicon to the Indian company if it could get a certain quantity of gaming hardware from Idle Time. This beneficial exchange is described as:

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

Kodak contracts with a firm in Taiwan to manufacture Kodak digital cameras. This is an example of a joint venture.

Small businesses are less involved in global trade today than in the past.

The two basic types of tariffs are:

Any corporation that exports at least 50% of its total output can be classified as a multinational corporation.

The Nissan automobile assembly plant in Tennessee is an example of foreign direct investment in the United States.

When it comes to ethics, successful American businesspeople are encouraged to follow the policy of "when in Rome, do as the Romans."

A tariff is designed to raise the price of imported products so that domestic goods are more competitively priced.

Hennessy Hardware, a U.S. retailer, buys much of its inventory from Asian countries. Hennessy Hardware would benefit if the value of the dollar relative to the currencies of the countries from which Hennessy imports.

CAFTA permits the United States, Canada, and Mexico to reduce trade barriers with one another while maintaining independent trade agreements with other countries.

Since patent and copyright laws are the same in all nations, they are not of much impact to firms that compete globally.

Jill works as a flight attendant for an international airline. While in China, it is convenient for Jill to find look-alikes in famous brands of watches, purses, clothing, and golf clubs. In fact, she does her Christmas shopping there and even buys good quality items for auctioning at her son's pre-school events back in the U.S. Jill's actions:

China is currently one of the three largest exporters in the world today.

is the exchange of merchandise or services for other merchandise or services without the exchange of money.

The second wave of offshore outsourcing is having a more negative effect on the U.S. job market.