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business communication

Questions and Answers of Business Communication

How does political abroad risk affect companies?
Companies fear open violence and conflict abroad because it can threaten to do what?
Q: How can a company incorporate political risk into its business strategies?
What is a good source of information to help conduct accurate political risk forecasting?
What might challenge Russia’s future economic prospects?
What challenges might pose a threat to China’s future economic performance?
Over what aspects of Russia’s centrally planned economy did planners exercise control?
You are managing director of your U.S. firm’s subsidiary in southern France. The social welfare states of Western Europe were founded in the Second World War with specific ethical considerations in
Suppose Cuba’s government collapses and the nation embarks on a path of economic transition. How might Cuba’s experience differ from that of Russia and China?
A U.S. law permits U.S. companies to sue firms from other nations that traffic in U.S. property nationalized by Cuba. The law also empowers the U.S. government to deny entry visas to the executives
1. List several benefits of international trade? 2. What term often describes the nature of trade between a developing nation and a neighboring wealthy one?
World merchandise exports are valued at how many times the value of worldwide service exports?
What portion of total world merchandise trade is accounted for by two way trade between high income economies?
1. What did the successful implementation of mercantilism require? 2. Mercantilist nations acquired colonies around the world to serve as sources of what? 3. What name is given to the belief that a
What does a nation have when it is unable to produce a good more efficiently than other nations but it can produce the good more efficiently than it can any other good?
The theories of absolute and comparative advantage say that nations benefit from trading because of the gains from what?
Factor proportions theory divides a nation’s resources into what two categories?
1. The international product life cycle theory says that a company will begin by exporting its product and later undertake “what” as the product moves through its life cycle? 2. Whenever
List the three stages that a product goes through according to the international product life cycle theory.
What is the main thrust of new trade theory?
The national competitive advantage theory states that a nation’s competitiveness in an industry depends on the capacity of the industry to do what?
The four main components of the Porter diamond are: (1) factor conditions, (2) demand conditions, (3) firm strategy, structure, and rivalry, and what else?
A group of related industries that spring up in a geographic area to support a nation’s internationally competitive industry is called a what?
You are a member of a World Trade Organization task force that is reviewing the recent banana conflict between the United States and the European Union. The European Union and the United States
As the first to set up an international air express business in 1969, DHL had the first-mover advantage over other companies. Is being a first mover as advantageous for a service company such as DHL,
What elements are necessary for a service company to achieve global success?
Instead of relying on local agents, DHL prides itself on having its own staff of more than 300,000 people across the globe. What are the merits and drawbacks of this international staffing approach?
What do you think are the dangers, if any, of being a first mover?
For what political reasons does a government intervene in trade?
What are some economic reasons why a government intervenes in trade?
Some people see the products of what country as the greatest threat to local cultures around the world?
Financial assistance from a government to domestic producers is called what?
What are the hoped-for outcomes of a foreign trade zone?
What are some of the ways that governments provide export financing?
Why might a government impose a quota on a product?
A stipulation that a portion of a product be sourced domestically is called what?
The first system of multilateral agreements to promote free trade was called what?
What are the main goals of the World Trade Organization?
Exporting a product at a price that is lower than that normally charged domestically or one that is lower than production costs can expose a firm to charges of what?
The National Foreign Trade Council (NFTC), a nonprofit trade and industry group based in Washington DC, won a court battle against the state of Massachusetts. In a unanimous decision the U.S. Supreme
People love finding a bargain on their favorite items while shopping. But few people would likely want those items made in the home market (and expanding employment) if it meant paying a higher price
Do you think that people from different cultures would respond differently to the above question? If so, identify which cultures.
The WTO cannot punish individual companies, but can only direct the actions toward governments of countries. Why do you think the WTO was not given authority to charge individual companies with
The purchase of physical assets or significant ownership of a company abroad to gain a measure of management control is called what?
What are the main drivers of foreign direct investment flows?
Why might a company engage in a cross-border merger or acquisition?
What imperfections are relevant to the discussion of market imperfections theory?
Location, ownership, and internationalization advantages combine which FDI theory?
Which FDI theory depicts a firm establishing a dominant market presence in an industry?
A system in which a product’s components are made where cost of producing a component is lowest is called what?
What do we call the situation in which a company engages in FDI because the firm it supplies has already invested abroad?
The national accounting system that records all receipts coming in to a nation and all payments to entities in other countries is called what?
Why might a host country intervene in foreign direct investment?
Why might a home country intervene in foreign direct investment?
1. What policy instruments can host countries use to promote FDI? 2. What policy instruments can home countries use to promote FDI? 3. Ownership restrictions and performance demands are policy
You are the U.S. senator deciding whether to vote yes or no on a new legislation. The potential new law places restrictions on the practice of outsourcing work to low-wage countries and is designed
What are the pros and cons of Mercedes’ decision to abandon the culture and some of its home country practices?
What do you think were the chief factors involved in Mercedes’ decision to undertake FDI in the United States rather than build the M-class in Germany?
Why do you think Mercedes decided to build the plant from the ground up in Alabama rather than buying an existing plant in, say, Detroit? List as many reasons as you can and explain your answers.
Some people believe that free trade agreements force consumers to trade the health and safety of their families for free trade. What are the benefits and drawbacks of putting food safety regulations
The lack of harmonized food-safety practices and standards is just one of the challenges faced by the food industry as it becomes more global. What other challenges face the food industry in an era
What is it called when countries in a region cooperate to reduce or eliminate barriers to the international flow of products, people and capital?
What are the names of the lowest and highest levels of regional economic integration?
An increase in trade between nations as a result of regional economic integration is called what?
1. What is the name of the official single currency of the European Union? 2. A country may receive membership in the European Union once it meets what is called the what? 3. Why did nations
1. Canada, Mexico, and the United States belong to the regional trading bloc called what? 2. What countries belong to the regional trading bloc called CAFTA-DR?
What is the name of Latin America’s most powerful regional trading bloc?
What are the stated aims of the Association of Southeast Asian Nations (ASEAN)?
The stated aims of which organization is not to build a trading bloc but instead to strengthen the multilateral trading system?
The Caribbean nations do not participate in NAFTA and CAFTA-DR. Many people in southern U.S. states complain that NAFTA and CAFTA-DR are unfair to their extended families living on the Caribbean
Two groups of four students each will debate the merits of extending NAFTA to more advanced levels of economic (and political) integration. After the first student from each side has spoken, the
How do you think countries with a high volume of exports to the United States, such as Mexico, would respond to stricter food-safety rules? Do you think such measures are a good way to stem the tide
What is the purpose of the international capital market?
What is the characteristic of an offshore financial center?
What type of financial instrument is traded in the international bond market?
The market of all stocks bought and sold outside the issuer’s home country is called what?
What does the Eurocurrency market consist of?
What is the market in which currencies are bought and sold and their prices determined?
1. Insuring against potential losses that may result from adverse changes in exchange rates is called what? 2. What do we call the instantaneous purchase and sale of a currency in different markets
What do we call an exchange rate requiring delivery of a traded currency within two business days?
What instruments are used in the forward market?
Where does more than half of all global currency trading take place?
1. A currency used as an intermediary to convert funds between two other currencies is called what? 2. What is another name for a freely convertible currency?
Why do governments sometimes engage in currency restrictions?
The goal of government regulation of financial-services industries is to maintain the integrity and stability of financial systems, thereby protecting both depositors and investors. Regulations
Argentina’s peso was linked to the U.S. dollar through a currency board for ten years before it was cut loose. Why did Argentina peg its currency to the dollar in the first place?
Companies encounter many difficulties in adapting their strategies to deal with the effects of a currency crisis that becomes an economic crash. How did local and international companies adapt to the
What has been the impact on the savings and purchasing power of ordinary citizens?
1. For a country with a currency that is weakening (valued low relative to other countries), what will happen to the price of its exports and the price of its imports? 2. The view that prices of
Unfavorable movements in exchange rates can be costly for business, so managers prefer that exchange rates be what?.
The principle that an identical item must have an identical price in all countries when price is expressed in a common currency is called what?
A unique aspect of purchasing power parity in the context of exchange rates is that it is only useful when applied to what?
What factors influence the power of purchasing power parity to accurately predict exchange rates?
The gold standard is an example of what type of international monetary system?
What are the main advantages of the gold standard?
1. An exchange rate system in which currencies float against one another with governments intervening to stabilize currencies at target rates is called what? 2. What do we call the arrangement
Q: You are the chair of an IMF task force. Your job is to reevaluate the policy of bailing out national governments that suffer losses in the private sector. Current policy is to enlist the
Suppose you and several classmates are a marketing team assembled by your Brazil-based firm to estimate demand in the U.S. market for its newly developed product. The market research firm you hired
The World Bank and the IMF had once argued that the leniency of debt forgiveness would make it more difficult for the lenders themselves to borrow cheaply on the world’s capital markets. If you
In negotiating the HIPC Debt Initiative, the World Bank and the IMF worked closely together. At one point, however, the plan came to a standstill when the two organizations produced different figures

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