What is meant by the term economic infrastructure and how can this affect a firm's plans to enter a global market?
What will be an ideal response?
Economic infrastructure is a country's communication, transportation, financial, legal, and distribution systems. This represents a critical consideration in a company's determination of whether it should try to market to a country's consumers and organizations. You might have the best product in the world, but if you are not able to physically reach your customer because the rains have washed away the roads, you will not be successful. Similarly, if the financial payment systems aren't developed (consumers lack credit cards; pay only in cash), exchange relationships may be more limited.
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A number of multilateral trade agreements have accelerated the pace of global integration which include:
A) NAFTA. B) GATT. C) WTO. D) EU. E) all of the above
A speaker which is not self-centered, but motivated by an understanding of receivers is
a. ineffective. b. audience centered. c. unclear. d. not interesting.
When preparing a reconciliation of net income to cash from operations, an increase in the ending inventory over the beginning inventory will result in an adjustment to reported net income because
a. cash is increased because inventory is a current asset. b. inventory is an expense deducted in computing net earnings, but is not a use of cash. c. the net increase in inventory is part of the difference between cost of goods sold and cash paid to suppliers. d. all changes in noncash accounts must be disclosed.
Which of the following is a factor that is MOST likely to influence the choice of a location for a global manufacturing plant?
a. price of the product b. ISO certification requirements c. possibility of government audits d. applicability of tariffs