Chapter 4 REVIEW QUESTIONS 1-4 - Chapter 4 The Global...

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Chapter 4: The Global Context of Business REVIEW QUESTIONS 1-4 Pgs. 108 1. How does the balance of trade differ from the balance of payments? balance of trade is referring to the economic value of products a country exports minus the economic value of all the products it imports and balance of payments refers to the flow of money in or out of a country. 2. What are the three possible levels of involvement in international business? Give examples of each. -Exports and imports-many manufactures export to foreign countries and import them home for resale; For example, IBM and Coke. -International firms-conduct a lot of business abroad and may even have manufacturing facilities overseas. For example, Hershey buys ingredients from foreign sellers and makes their products in the US. -Multinational firms-firms that design, produce and market their products in many nations; For example, Ford and
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Unformatted text preview: Nestlé. 3. How does a country’s economic system aFect the decisions of foreign ±rms interested in doing business there? When looking into doing business in foreign countries it’s important to know when and to what extent the government is involved in the industry. 4. What aspects of the culture in your state or region would be of parTcular interest to a foreign ±rm thinking about locaTng there? It can be a produc²on facility; they can consider things that are home grown to Arizona. It just depends on what these foreign ³rms are interested in targe²ng. They would have to consider the ci²zens and its diversity to make an accurate decision on what people will buy or what they will be willing to work in....
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  • Spring '14
  • International Trade, foreign firms, foreign countries, Economic Value, imports-many manufactures export

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