Question 1

Most sovereign wealth funds (SWFs) are owned by oil-rich governments.

Accepted Answer

A) True 
 B)False  True

Question 2

Which theory incorporates the concept of opportunity cost?

Accepted Answer

A)  comparative advantage 
B)  mercantilism 
C)  absolute advantage 
D)  factor endowments 
A)  comparative advantage 
B)  mercantilism 
C)  absolute advantage 
D)  factor endowments A

Question 3

According to the international product life cycle theory, the innovating firm's country is primarily an exporter of the product in all three stages.

Accepted Answer

A) True 
 B)False  False

Question 4

Which of the following is one of the four elements discussed in the theory of national competitive advantage?

Accepted Answer

A)  factor conditions 
B)  opportunity costs 
C)  equity conditions 
D)  market saturation rates 
A)  factor conditions 
B)  opportunity costs 
C)  equity conditions 
D)  market saturation rates

Question 5

What theories are categorized as firm-based theories? Which theories are categorized as country-based trade theories? What does each type of theory help explain?

Accepted Answer

Country similarity theory, product life

Question 6

Which theory listed below is also called the Heckscher-Ohlin theory?

Accepted Answer

A)  relative advantage 
B)  comparative advantage 
C)  relative factor endowments 
D)  specialization of countries 
A)  relative advantage 
B)  comparative advantage 
C)  relative factor endowments 
D)  specialization of countries

Question 7

What motivates firms to become involved in international trade and foreign direct investment?

Accepted Answer

MNEs engage in international trade for a

Question 8

Which of the following is considered a form of intellectual property?

Accepted Answer

A)  real estate 
B)  human resources 
C)  a brand name 
D)  capital investments 
A)  real estate 
B)  human resources 
C)  a brand name 
D)  capital investments

Question 9

Which of the following was harmed the most by mercantilist policies?

Accepted Answer

A)  monarchs 
B)  local politicians 
C)  individual consumers 
D)  domestic manufacturers 
A)  monarchs 
B)  local politicians 
C)  individual consumers 
D)  domestic manufacturers

Question 10

In 2016, total international merchandise trade accounted for about ________ percent of the world's GDP.

Accepted Answer

A)  12 
B)  21 
C)  44 
D)  59 
A)  12 
B)  21 
C)  44 
D)  59

Question 11

Mercantilism ________.

Accepted Answer

A)  suggests that a country should export those goods for which it is more productive than other countries and trade for those goods for which other countries are more productive 
B)  maintains that a country's wealth is measured by its holdings of gold and silver 
C)  suggests that a country will have a comparative advantage in producing products that intensively use resources it has in abundance 
D)  argues that most trade in manufactured goods should be between countries with similar per capita incomes 
A)  suggests that a country should export those goods for which it is more productive than other countries and trade for those goods for which other countries are more productive 
B)  maintains that a country's wealth is measured by its holdings of gold and silver 
C)  suggests that a country will have a comparative advantage in producing products that intensively use resources it has in abundance 
D)  argues that most trade in manufactured goods should be between countries with similar per capita incomes

Question 12

Which theory promotes the notion of specializing in what you do relatively best?

Accepted Answer

A)  country similarity 
B)  comparative advantage 
C)  product life cycle 
D)  absolute advantage 
A)  country similarity 
B)  comparative advantage 
C)  product life cycle 
D)  absolute advantage

Question 13

Why does Heineken rely on FDI for much of its internationalization strategy?

Accepted Answer

Heineken relies on FDI for much of its i

Question 14

An "unfavorable" balance of trade indicates that a country's exports are less than its imports.

Accepted Answer

A) True 
 B)False

Question 15

What is opportunity cost? Why is opportunity cost an important consideration when determining what a country should export and import?

Accepted Answer

The opportunity cost of a good is the va

Question 16

The country similarity theory suggests that most trade in manufactured goods should be between countries with similar ________.

Accepted Answer

A)  labor costs 
B)  economic development 
C)  natural resources 
D)  cultures and languages 
A)  labor costs 
B)  economic development 
C)  natural resources 
D)  cultures and languages

Question 17

Briefly explain the connection between transaction costs and internalization theory.

Accepted Answer

Transaction costs are the costs of enter

Question 18

According to the international product life cycle theory, domestic production peaks in stage two.

Accepted Answer

A) True 
 B)False

Question 19

The first theories of international trade used ________ as a unit of analysis.

Accepted Answer

A)  individual countries 
B)  country clusters 
C)  regions 
D)  continents 
A)  individual countries 
B)  country clusters 
C)  regions 
D)  continents

Question 20

Which of the following is a condition of Dunning's eclectic theory?

Accepted Answer

A)  The firm must own a competitive advantage that overcomes competing against foreign firms in their markets. 
B)  Research and development costs must outweigh expenses related to foreign direct investment. 
C)  The firm must benefit more from outsourcing a service than controlling a foreign business. 
D)  Business activity must be more profitable in a domestic location than in a foreign location. 
A)  The firm must own a competitive advantage that overcomes competing against foreign firms in their markets. 
B)  Research and development costs must outweigh expenses related to foreign direct investment. 
C)  The firm must benefit more from outsourcing a service than controlling a foreign business. 
D)  Business activity must be more profitable in a domestic location than in a foreign location.

Most sovereign wealth funds (SWFs) are owned by oil-rich governments.

Which theory incorporates the concept of opportunity cost?

According to the international product life cycle theory, the innovating firm's country is primarily an exporter of the product in all three stages.

Which of the following is one of the four elements discussed in the theory of national competitive advantage?

What theories are categorized as firm-based theories? Which theories are categorized as country-based trade theories? What does each type of theory help explain?

Which theory listed below is also called the Heckscher-Ohlin theory?

What motivates firms to become involved in international trade and foreign direct investment?

Which of the following is considered a form of intellectual property?

Which of the following was harmed the most by mercantilist policies?

In 2016, total international merchandise trade accounted for about ________ percent of the world's GDP.

Mercantilism ________.

Which theory promotes the notion of specializing in what you do relatively best?

Why does Heineken rely on FDI for much of its internationalization strategy?

An "unfavorable" balance of trade indicates that a country's exports are less than its imports.

What is opportunity cost? Why is opportunity cost an important consideration when determining what a country should export and import?

The country similarity theory suggests that most trade in manufactured goods should be between countries with similar ________.

Briefly explain the connection between transaction costs and internalization theory.

According to the international product life cycle theory, domestic production peaks in stage two.

The first theories of international trade used ________ as a unit of analysis.

Which of the following is a condition of Dunning's eclectic theory?

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters

Exam 6: International Trade and Investment

Most sovereign wealth funds (SWFs) are owned by oil-rich governments.

Which theory incorporates the concept of opportunity cost?

According to the international product life cycle theory, the innovating firm's country is primarily an exporter of the product in all three stages.

Which of the following is one of the four elements discussed in the theory of national competitive advantage?

What theories are categorized as firm-based theories? Which theories are categorized as country-based trade theories? What does each type of theory help explain?

Which theory listed below is also called the Heckscher-Ohlin theory?

What motivates firms to become involved in international trade and foreign direct investment?

Which of the following is considered a form of intellectual property?

Which of the following was harmed the most by mercantilist policies?

In 2016, total international merchandise trade accounted for about ________ percent of the world's GDP.

Mercantilism ________.

Which theory promotes the notion of specializing in what you do relatively best?

Why does Heineken rely on FDI for much of its internationalization strategy?

An "unfavorable" balance of trade indicates that a country's exports are less than its imports.

What is opportunity cost? Why is opportunity cost an important consideration when determining what a country should export and import?

The country similarity theory suggests that most trade in manufactured goods should be between countries with similar ________.

Briefly explain the connection between transaction costs and internalization theory.

According to the international product life cycle theory, domestic production peaks in stage two.

The first theories of international trade used ________ as a unit of analysis.

Which of the following is a condition of Dunning's eclectic theory?

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters