Chapter 7

a. Global market opportunities refer to the favorable conditions that allow companies to choose to expand globally.

c. Cultural barriers are a hindrance to international trade.

a. Cultural sensitivity involves a person’s ability to be aware of and appreciate cultural differences.

d. This advice to Ashia could not only be offensive to her dinner guest but would also cause poor business relationships.

b. Business politics vary greatly across cultures. Businesspeople must decide how far they are willing to adapt to the local expectations.

a. An exchange rate is the rate at which one country’s currency can be exchanged for that of another country

c. As stability increases in a country, the economy often improves.

a. Stereotypes are assumptions or generalizations made about an entire group of people.

d. An embargo is a complete halt of trading with a specific country or of a specific good.

b. The USMCA is a trade bloc agreement between the United States, Mexico, and Canada.

a. McDonald’s is a franchise.

c. Exporting is the easiest way in which to begin an international business.

a. Licensing is an agreement whereby one company can legally use the copyrighted material of another for a royalty fee.

d. A joint venture is a business arrangement whereby two or more companies create a single enterprise or project.

b. An international firm has centralized decision-making, meaning decisions are made in the home country headquarters.

a. A standardized strategy employs the same strategy for every market.

c. The degree to which a promotion strategy should change depends on the market.

a. “Real Magic” is Coca-Cola’s slogan in New Zealand.

d. The whole channel refers to all distribution channel members, including manufacturers, retailers, transportation, and wholesalers.

b. Singapore has the highest automobile prices due the country’s small size and limited infrastructure.