Scenario: Color-Me-Green Inc. Color-Me-Green Inc., a U.S.-Based Clothing Merchant, Has Started Doing Business

question 70

Multiple Choice

Scenario: Color-Me-Green Inc.
Color-Me-Green Inc., a U.S.-based clothing merchant, has started doing business internationally. Having subsidiaries in several countries, the company must integrate financial information from all its subsidiaries with the U.S. home office at the end of the year.
-In Country B,Color-Me-Green is faced with a tight labor market and a low unemployment rate.This low unemployment rate will most likely result in ________.

• A) lower interest rates
• B) lower wages for workers
• C) higher purchasing power
• D) higher rate of inflation

---

Definitions:

Trading Bloc

Consists of those countries that have signed a particular trade agreement.

Trade Activities

Various operations and transactions involved in the buying, selling, or exchange of goods and services between businesses, countries, or entities.

Formal Agreement

A legally binding contract or document specifying the terms and conditions of an arrangement between parties.

Cultural Dimensions

The aspects of culture that influence people's values, behaviors, and communication styles, often used in cross-cultural comparison and analysis.