AFM 131 EXAM QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS GRADED A++
the 3 types of global perspectives
business, consumer, employee
what is the business perspective
global market drives innovation increased access to resources and suppliers, and get
cheaper and better quality & allows businesses to do what they do best.
larger market = potential larger profits made
what is the consumer perspective
more options, increased access and connectivity, better quality, and lower price
what is the employee perspective.
get to interact with clients, customers, and business partners all over the world
employers get experience for leadership and management roles
what are the challenges for the global markets
loss of jobs - due to outsourcing
24/7
cultural difference - different law and ethics
why was target Canada not successful from the customer's perspective?
b/c there were bare shelves and limited selections, lack of deals & US requirements not
met
why was target Canada not successful from the employee's perspective?
, b/c they underestimated the complexity of the market and geography & high prices and
inventory management issues
why do countries trade?
b/c not all countries have the products and services that people need
what does trade allow us to get?
exports - produced beyond our consumption
imports- goods which are not locally available
what is free trade?
being able to trade products and services without the economic or political obstruction
what is the balance of trade?
the relationship b/w imports and exports
what is the trade surplus?
it is the favourable balance of trade where exports > imports
what is the trade deficit
it is unfavourable balance of trade where exports < imports
what is the balance of payments?
it is the difference between money coming into a country and the money leaving the
country through imports
where does money flow from?
tourism, foreign aid, military expenditures and foreign investment
what is the theory of competitive advantage?
countries export goods that they produce they efficiently and countries import the ones
that they can't produce efficiently
SOLUTIONS GRADED A++
the 3 types of global perspectives
business, consumer, employee
what is the business perspective
global market drives innovation increased access to resources and suppliers, and get
cheaper and better quality & allows businesses to do what they do best.
larger market = potential larger profits made
what is the consumer perspective
more options, increased access and connectivity, better quality, and lower price
what is the employee perspective.
get to interact with clients, customers, and business partners all over the world
employers get experience for leadership and management roles
what are the challenges for the global markets
loss of jobs - due to outsourcing
24/7
cultural difference - different law and ethics
why was target Canada not successful from the customer's perspective?
b/c there were bare shelves and limited selections, lack of deals & US requirements not
met
why was target Canada not successful from the employee's perspective?
, b/c they underestimated the complexity of the market and geography & high prices and
inventory management issues
why do countries trade?
b/c not all countries have the products and services that people need
what does trade allow us to get?
exports - produced beyond our consumption
imports- goods which are not locally available
what is free trade?
being able to trade products and services without the economic or political obstruction
what is the balance of trade?
the relationship b/w imports and exports
what is the trade surplus?
it is the favourable balance of trade where exports > imports
what is the trade deficit
it is unfavourable balance of trade where exports < imports
what is the balance of payments?
it is the difference between money coming into a country and the money leaving the
country through imports
where does money flow from?
tourism, foreign aid, military expenditures and foreign investment
what is the theory of competitive advantage?
countries export goods that they produce they efficiently and countries import the ones
that they can't produce efficiently
