Question 1

Explain what determines the products for which a country has a comparative advantage.

Accepted Answer

Heckscher and Ohlin explored the questio

Question 2

Why is the notion of specialization important when analyzing the benefits of free trade?

Accepted Answer

Critics of free trade worry that imports

Question 3

Which of the following is one of the conditions specified in eclectic theory for the occurrence of foreign direct investment?

Accepted Answer

A)  non-ownership advantage 
B)  location advantage 
C)  home country advantage 
D)  externalization advantage 
A)  non-ownership advantage 
B)  location advantage 
C)  home country advantage 
D)  externalization advantage

Question 4

________ economies occur when a firm's costs of production decline as the number of firms in that industry increase within a given area.

Accepted Answer

A)  Agglomeration 
B)  Consolidation 
C)  Accommodation 
D)  Divergent 
A)  Agglomeration 
B)  Consolidation 
C)  Accommodation 
D)  Divergent

Question 5

Heineken has used FDI extensively as part of its internationalization strategy because of the cost of transporting its products.

Accepted Answer

A) True 
 B)False

Question 6

In the ________ stage of the international product life cycle, the product becomes commodity-like and price becomes very important.

Accepted Answer

A)  new product 
B)  maturing product 
C)  standardized product 
D)  international product 
A)  new product 
B)  maturing product 
C)  standardized product 
D)  international product

Question 7

The Heckscher-Ohlin theory is another name for the product life cycle theory.

Accepted Answer

A) True 
 B)False

Question 8

Brand name is an important component in a customer's purchase decision for commodities.

Accepted Answer

A) True 
 B)False

Question 9

Japan exports Toshiba Computers to the United States, and the United States exports Apple Computers to Japan. This is an example of ________.

Accepted Answer

A)  mercantilism 
B)  diversification 
C)  interindustry trade 
D)  intraindustry trade 
A)  mercantilism 
B)  diversification 
C)  interindustry trade 
D)  intraindustry trade

Question 10

Which factors of production did Leontief focus on?

Accepted Answer

A)  land and labor 
B)  land and technology 
C)  capital and labor 
D)  labor and technology 
A)  land and labor 
B)  land and technology 
C)  capital and labor 
D)  labor and technology

Question 11

During which century were the first theories of international trade developed?

Accepted Answer

A)  sixteenth 
B)  seventeenth 
C)  eighteenth 
D)  nineteenth 
A)  sixteenth 
B)  seventeenth 
C)  eighteenth 
D)  nineteenth

Question 12

The Heckscher-Ohlin theory ________.

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)  states that a country should produce and export those goods for which it is relatively more productive than other countries and import those goods for which other countries are relatively more productive than it is 
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)  states that a country should produce and export those goods for which it is relatively more productive than other countries and import those goods for which other countries are relatively more productive than it is 
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 13

Agglomeration economies occur when a firm's costs of production increase as the number of firms in that industry increase within a given area.

Accepted Answer

A) True 
 B)False

Question 14

How can firms develop a sustainable competitive advantage?

Accepted Answer

Firms can develop sustainable competitiv

Question 15

North Americans and Europeans have long applauded Japan's open door policy with regard to imports.

Accepted Answer

A) True 
 B)False

Question 16

Adam Smith was best known as an advocate of ________.

Accepted Answer

A)  low-cost manufacturing 
B)  free-market economics 
C)  mercantilism 
D)  labor unions 
A)  low-cost manufacturing 
B)  free-market economics 
C)  mercantilism 
D)  labor unions

Question 17

Which theory suggests that a country should export those goods and services for which it is more productive than other countries and import those goods and services for which other countries are more productive?

Accepted Answer

A)  mercantilism 
B)  comparative advantage 
C)  absolute advantage 
D)  specialization of countries 
A)  mercantilism 
B)  comparative advantage 
C)  absolute advantage 
D)  specialization of countries

Question 18

Explain the three stages in the international product life cycle theory.

Accepted Answer

Stage 1) New Product Stage. In stage 1,

Question 19

How can an MNE gain a competitive advantage by exploiting the experience curve? Provide an example to illustrate your answer.

Accepted Answer

Another source of firm-specific advantag

Question 20

The theory of absolute advantage considers relative productivity differences between countries.

Accepted Answer

A) True 
 B)False

Explain what determines the products for which a country has a comparative advantage.

Why is the notion of specialization important when analyzing the benefits of free trade?

Which of the following is one of the conditions specified in eclectic theory for the occurrence of foreign direct investment?

________ economies occur when a firm's costs of production decline as the number of firms in that industry increase within a given area.

Heineken has used FDI extensively as part of its internationalization strategy because of the cost of transporting its products.

In the ________ stage of the international product life cycle, the product becomes commodity-like and price becomes very important.

The Heckscher-Ohlin theory is another name for the product life cycle theory.

Brand name is an important component in a customer's purchase decision for commodities.

Japan exports Toshiba Computers to the United States, and the United States exports Apple Computers to Japan. This is an example of ________.

Which factors of production did Leontief focus on?

During which century were the first theories of international trade developed?

The Heckscher-Ohlin theory ________.

Agglomeration economies occur when a firm's costs of production increase as the number of firms in that industry increase within a given area.

How can firms develop a sustainable competitive advantage?

North Americans and Europeans have long applauded Japan's open door policy with regard to imports.

Adam Smith was best known as an advocate of ________.

Which theory suggests that a country should export those goods and services for which it is more productive than other countries and import those goods and services for which other countries are more productive?

Explain the three stages in the international product life cycle theory.

How can an MNE gain a competitive advantage by exploiting the experience curve? Provide an example to illustrate your answer.

The theory of absolute advantage considers relative productivity differences between countries.

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

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Exam 6: International Trade and Investment

Explain what determines the products for which a country has a comparative advantage.

Why is the notion of specialization important when analyzing the benefits of free trade?

Which of the following is one of the conditions specified in eclectic theory for the occurrence of foreign direct investment?

________ economies occur when a firm's costs of production decline as the number of firms in that industry increase within a given area.

Heineken has used FDI extensively as part of its internationalization strategy because of the cost of transporting its products.

In the ________ stage of the international product life cycle, the product becomes commodity-like and price becomes very important.

The Heckscher-Ohlin theory is another name for the product life cycle theory.

Brand name is an important component in a customer's purchase decision for commodities.

Japan exports Toshiba Computers to the United States, and the United States exports Apple Computers to Japan. This is an example of ________.

Which factors of production did Leontief focus on?

During which century were the first theories of international trade developed?

The Heckscher-Ohlin theory ________.

Agglomeration economies occur when a firm's costs of production increase as the number of firms in that industry increase within a given area.

How can firms develop a sustainable competitive advantage?

North Americans and Europeans have long applauded Japan's open door policy with regard to imports.

Adam Smith was best known as an advocate of ________.

Which theory suggests that a country should export those goods and services for which it is more productive than other countries and import those goods and services for which other countries are more productive?

Explain the three stages in the international product life cycle theory.

How can an MNE gain a competitive advantage by exploiting the experience curve? Provide an example to illustrate your answer.

The theory of absolute advantage considers relative productivity differences between countries.

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