Exam 8: Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

During the past decade, U.S. imports of business services have ________, U.S. exports of business services have ________, and U.S. net exports of business services have ________.

In the model of monopolistic competition, trade costs between countries will cause domestic and foreign markets to have ________ prices, ________ quantities sold, and ________ profit levels.

Under the model of monopolistic competition, a(an) ________ in the number of firms in the industry will cause ________ to ________.

A corporation is considered a multinational ________ if ________.

Under the model of monopolistic competition, a(an) ________ in the number of firms in the industry will cause ________ to ________.

If a firm that uses a production process that yields economies of scale charges a price less than ________, then profit will be ________.

-The figure above represents the demand and cost functions facing a Brazilian steel producing monopolist. The Brazilian firm is charging its foreign (U.S.) customers one half the price it is charging its domestic customers. Is this good or bad for the real income or economic welfare of the United States? Is the Brazilian firm engaged in dumping? Is this predatory behavior on the part of the Brazilian steel company?

A product is produced in a monopolistically competitive industry with scale economies. If this industry exists in two countries, and these two countries engage in trade with each other, then we would expect

-Refer to above figure. Given the opportunity to sell at world prices, the marginal (opportunity) cost of selling a ton domestically is what?

In an industry where firms experience internal scale economies, the long-run cost of production will depend on

In the model of monopolistic competition, compared to a firm with a higher marginal cost, a firm with a lower marginal cost will set a ________ price, produce ________ output, and earn ________ profits.

International trade based solely on internal scale economies in both countries is likely to be carried out by

An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q. What is average total cost equal to when Q = 10?

Intra-industry trade will tend to dominate trade flows when which of the following exists?

In the model of monopolistic competition, if firms have ________ average cost curves, then opening trade will ________ the total number of firms and ________ the average price.

A corporation is considered a multinational ________ if ________.

An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q. What is total cost equal to when Q = 10?

It is possible that trade based on external scale economies may leave a country worse off than it would have been without trade. Explain how this could happen.

A firm is more likely to engage in horizontal foreign direct investment if

Complaints are often made to the International Trade Commission concerning foreign "dumping" practices. These complaints typically claim that