What are the advantages of saving your money at a bank?

Would you rather invest your money and earn 6 percent interest or save your money in a bank savings account and earn 0.25 percent? Explain your answer below.

Is it realistic for you to save $20 a month? Explain your answer below.

Your friend has just started his first job, working weekends at a local restaurant. He has come to you for advice on saving money at a bank for his first car. He doesn't have any bills and makes around $400 a month. He has already saved $250 and keeps his money at home. Since he is unfamiliar with banks, what advice would you give him regarding saving his money?

A couple will retire in 40 years; they plan to spend about $35,000 a year in retirement, which should last about 20 years. They believe that they can earn 9% interest on retirement savings.

a. If they make annual payments into a savings plan, how much will they need to save each year? Assume the first payment comes in 1 year. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

annual savings $945.59 (correct answer)

b. How would the answer to part (a) change if the couple also realize that in 15 years they will need to spend $65,000 on their child’s college education? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Annual Savings_____________

1. What is a global pricing strategy that relies on a fixed price for all export markets? 

a. Rigid cost-plus pricing 

b. Push marketing 

c. Dumping

2. Brunner Inc. is a cell phone company. They have multiple distribution channels worldwide already set, as they directly sell to the main carriers in the major economies. Normally, their cell phones are smartphones for the high-end users, but they now have released a new brand for the mid-range clients. They did not want to release the mid-range cell phones under the Brunner trademark, because it is a different market segment. The top mobile carriers in the top economies all will sell their new mid-range brand. Which of the following BEST explains what Brunner is doing in this scenario? 

a. Brunner is using push marketing, in which the traditional distributing partners will help them reach the consumer. Brunner should use advertisement with the new brand name, but they should include "made by Brunner." This way, the plan will report the most revenue. 

b. Brunner is using viral marketing, in which the traditional distribution partners will help them reach the consumer. Brunner should not put their trademark name in any of the new brand ads, as it will damage their luxury brand reputation. This way the company will get the most revenue. 

c. Brunner is using guerilla marketing, in which the traditional distribution partners will help them reach the consumer. Brunner should use advertisement with the new brand name, but they should include "made by Brunner." This way, the plan will report the most revenue.

3. Walter Co. manufactures veterinary feed. Since cats and dogs eat similar food all over the world, they standardized global branding. The product is exactly the same, and they export it to supermarket chains all over the world. They do not even have to worry about translating the packaging, because people see the pictures of dogs and cats. However, Walter Co. noticed that in the Middle East markets, sales went down suddenly when an NGO said the feed included pork. West Africa and North Africa's sales also started to decrease. What motive would there be to change their current business model?

a. They should change the glocalization they have been doing recently. The branding is too responsive to the culture and structure. This has offended many people trying to buy their product, but they find that it is importing foreigner values. 

b. They should keep the same operations: a standardization strategy. They should refocus their attention to other markets, which can help get more revenues by increasing economies of scale. 

c. The company should localize, to determine national preferences. They should keep the global branding promotion the same to save costs, but they should open a processing plant in the Middle East to make a pork-less feed for the affected markets.

4. _________ agents act as am importer's representative with local customs agencies.   

a. Export   

b. Forwarding   

c. Clearing 

d. Purchasing

5. What do distribution agents do? 

a. They help companies distribute talent across an organization. 

b. They forecast new business models. 

c. They help companies sell their products in individual markets by doing product demonstrations. 

d. They help companies import and export goods.

6. When considering the ways companies can gain advantages by being globally integrated, having a digital platform 

a. may mean creating a network of specialized, focused operations around the world that are tightly controlled by a central hub.

b. may mean maintaining a small number of large facilities to make products for export to markets around the world. 

c. allows people all over the company and even outside it to easily contribute to knowledge and products. 

d. means making tight links between value-chain activities.

7. What is the first step in getting local branches to act like local innovators?   

a. Launching local branding campaigns 

b. Building new offices 

c. Conducting local market research

8. Companies typically move abroad in order to _____________.

a. acquire new resources 

b. learn new cultures 

c. reduce risk

9. Which of the following is not a primary emerging market that the US is looking to expand into? 

a. India 

b. Mexico 

c. China 

d. Brazil

10. In the context of globalization, identify a difference between the research and development (R&D) trend in the United States when compared with other nations of the world. 

a. Unlike Japan, the United States represents less than 26 percent of global spending on R&D. 

b. Unlike in other countries, in the United States, private nonprofit donors are not allowed to invest in R&D. 

c. In the United States, nearly 70 percent of R&D is funded by the government. 

d. Unlike in Asian countries, R&D spending in the United States is proportional to the increase in the countries' gross domestic product (GDP).