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Chapter 7

7.1 Knowledge Check

1
a. Global market opportunities refer to the favorable conditions that allow companies to choose to expand globally.
2
c. Cultural barriers are a hindrance to international trade.
3
a. Cultural sensitivity involves a person’s ability to be aware of and appreciate cultural differences.
4
d. This advice to Ashia could not only be offensive to her dinner guest but would also cause poor business relationships.
5
b. Business politics vary greatly across cultures. Businesspeople must decide how far they are willing to adapt to the local expectations.

7.2 Knowledge Check

1
a. An exchange rate is the rate at which one country’s currency can be exchanged for that of another country
2
c. As stability increases in a country, the economy often improves.
3
a. Stereotypes are assumptions or generalizations made about an entire group of people.
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d. An embargo is a complete halt of trading with a specific country or of a specific good.
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b. The USMCA is a trade bloc agreement between the United States, Mexico, and Canada.

7.3 Knowledge Check

1
a. McDonald’s is a franchise.
2
c. Exporting is the easiest way in which to begin an international business.
3
a. Licensing is an agreement whereby one company can legally use the copyrighted material of another for a royalty fee.
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d. A joint venture is a business arrangement whereby two or more companies create a single enterprise or project.
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b. An international firm has centralized decision-making, meaning decisions are made in the home country headquarters.

7.4 Knowledge Check

1
a. A standardized strategy employs the same strategy for every market.
2
c. The degree to which a promotion strategy should change depends on the market.
3
a. “Real Magic” is Coca-Cola’s slogan in New Zealand.
4
d. The whole channel refers to all distribution channel members, including manufacturers, retailers, transportation, and wholesalers.
5
b. Singapore has the highest automobile prices due the country’s small size and limited infrastructure.
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