Many people fear world trade because it:

• will inevitably lead to inflation.

  
  

• will cause living standards to increase at a slower rate.

  
  

• causes some people to lose their jobs as production shifts abroad.

  
  

• has brought entire nations out of poverty.

  
  

Which method of entering the global marketplace would be most risky?

• Licensing

  
  

• Direct investment

  
  

• Contract manufacturing

  
  

• Joint ventures

  
  

A cooperative agreement between business firms is called a:

• shared capital contract.

  
  

• global partner development strategy.

  
  

• strategic alliance.

  
  

• joint contract.

  
  

Unprocessed extractive or agricultural products, such as copper, peanuts, soybean, bauxite, fruits, ore, and so on, that become part of finished products are examples of:

• supplies

  
  

• OEM parts

  
  

• component parts

  
  

• raw materials

  
  

NAICS data are helpful for analyzing segmenting, and targeting markets. The system was developed by:

• large manufacturers in United States and Mexico that produce similar goods.

  
  

• the North American Free Trade Agreement partners.

  
  

• Brazil, Chile, Argentina, Canada, and the United States working together in a joint venture.

  
  

• the SIC committee

  
  

Arm & Hammer is a well-known and respected brand of baking soda. The company has put its brand name on several products, such as laundry detergent, toothpaste, kitty litter, and many more. These are examples of:

• brand extensions

  
  

• brand modifications

  
  

• brand banks

  
  

• brand hierarchies

  
  

All of the following are characteristics of culture EXCEPT:

• culture is pervasive.

  
  

• culture is learned.

  
  

• culture is functional.

  
  

• culture is an inherent trait.

  
  

UGG has a portion of its Web site featuring photos of celebrities wearing UGG shoes. The celebrities serve as:

• opinion leaders

  
  

• laggards

  
  

• early instigators

  
  

• gatekeepers

  
  

Louis owns an agency that specializes in bringing international buyers in contact with U.S. companies to facilitate global trade. What type of intermediary is Louis?

• Buyer for export

  
  

• Export broker

  
  

• License agent

  
  

• Import agent

  
  

Claiborne, Inc. produces leather accessories for motorcycle riders and is in the first stage of creating its global business. This means that Claiborne:

• operates in one country and sells to others.

  
  

• has set up a foreign subsidiary.

  
  

• operates an entire line of business in another country.

  
  

• has top executives and core corporate functions in different countries.