Lesson 4.2 The Global Marketplace

What must imported goods to the US meet?

• Higher standards than domestic products

• The same standards as domestic products

• Lower standards than domestic products

• No standards at all

Hiring foreign manufacturers to make a product

• Joint Venture

• Contract Manufacturing

• Foreign Direct Investment (FDI)

• Socio-Cultural Factors

What is a risk of contract manufacturing?

• The finished product can be tampered with.

• Designs can be stolen.

• It's more expensive.

• It may not meet importing/exporting standards.

What is the benefit of lower wages in contract manufacturing?

• Higher product prices.

• More competitive pricing.

• Increased domestic employment.

• Enhanced product quality.

Large corporations that have operations in several countries

• Multinationals

• Mini-Nationals

• Internationals

• Franchise

Midsize or smaller companies with operations in foreign countries

• Multinationals

• Mini-Nationals

• Internationals

• Franchise

What can new trade regulations cause businesses to do?

• Increase production speed

• Reconsider trading with certain countries

• Lower product prices

• Hire more employees

What must businesses consider about employee laws in another country?

• They are the same everywhere

• They vary and must be understood

• They are not important

• They are only relevant to large companies

What should businesses evaluate about the labor force before entering a new market? Select all that apply.

• Standard wages

• The education level of workers

• Skill

• Employee laws

In which countries does the number 4 indicate death?

• India and Pakistan

• China and Japan

• Brazil and Argentina

• Germany and France