Ch 5 Review

Identify requirements for international business travel.

• Passports, visas, proof of citizenship, and immunizations

• Driver's license, credit card, and travel insurance

• Birth certificate, social security card, and medical records

• Library card, gym membership, and utility bills

What is the impact of electronic communication tools on global business activities?

• They have played a vital role in globalization and business activities by enabling companies to interact with customers and partners

• They have no impact on global business activities

• They have made global business activities more difficult

• They have increased the cost of global business activities

What are three market-entry strategies for conducting business internationally?

• Franchising, licensing, and setting up a joint venture

• Advertising, sales promotions, and public relations

• Product development, pricing, and distribution

• Market research, target audience, and branding

What is the impact of cultural, political, and social environments on global and world trade?

• They can affect the success of global trade

• They have no impact on global trade

• They only affect local trade

• They only affect political relationships

What is the role of trade, protectionism, and monetary markets in the global economy?

• Trade allows people to get what they want and need

• Protectionism restricts trade and favors domestic businesses

• Monetary markets facilitate investments and currency exchanges

• All of the above

What are the determinants of exchange rates and their effects on the domestic economy?

• Interest rates, inflation, government debt, and balance of trade

• Population, climate, natural resources, and infrastructure

• Education, healthcare, technology, and innovation

• Culture, language, traditions, and customs

What labor issues are associated with global trade?

• Differing standards for human laborers

• Equal treatment of workers in all countries

• Uniformity in working conditions worldwide

• Elimination of low-wage jobs

What is the potential impact of emerging economies on business activities?

• Opportunities for investment and expansion

• Decrease in global business activities

• Stagnation of economic growth

• Increased competition for established businesses

Explain the impact of a country's economic development on world trade.

• High economic development leads to more involvement in global trade leading to higher quality of life

• Low economic development leads to more involvement in global trade

• Economic development has no impact on world trade

• Economic development only affects domestic trade

What is the global legal system that settles international business disputes?

• World Trade Organization (WTO)

• United Nations (UN)

• International Court of Justice (ICJ)

• European Union (EU)