Bussiness Q&a Essay

1476 Words Nov 1st, 2015 6 Pages
Chapter Three
The World Marketplace: Business without Borders

Review Questions

1. What countries represent the largest global business opportunities for the next decade? What factors determine the size of the opportunity?

2. Why do companies tend to thrive in global markets when their country of origin enjoys a comparative advantage in their industry?

3. Explain how to calculate the balance of trade. How does the growing United States trade deficit impact the economy? Why?

4. Explain the meaning of “strong” currency and “weak” currency. What are the advantages and disadvantages of each?

5. Why is outsourcing such an attractive way for firms to tap into
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Briefly explain why each of these five countries might or might not be a viable option for a new American business venture.

2. Imagine that you’re a South Korean fashion magnate looking to expand your line of designer clothing into America. You definitely want to establish a small chain of retail locations, and you’re considering moving your entire manufacturing operation to America. Examining factors of production, risk, inflow of innovation, and competitive advantage, is America a good foreign market to invest in? What strategy will you use to break into the American market from nearly 7,000 miles away?

3. Many multinational companies market products under different brand names when conducting business overseas. For example, Unilever’s Axe Body Spray is called Lynx in the United Kingdom and Australia. Research some of your favorite brands (or products that you buy on a regular basis), and list if and how they use alternate product names when conducting business in foreign markets. Then, explain why a company might use a different brand name abroad.

4. Similar to Coca-Cola and Nike, Hollywood megastars represent global brands in their own right. But their fans might be surprised to learn that many have leveraged their reputation in foreign markets (most often Japan) by creating ads—sometimes downright cheesy ads—to hawk products that they would never endorse in the domestic market. Use the Internet to uncover

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