Question 1

The country similarity 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 levels of economic development 
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 levels of economic development

Question 2

Which of the following factors are not included in Porter's view of factor endowments?

Accepted Answer

A)  land 
B)  capital 
C)  work ethic of workforce 
D)  educational level of workforce 
A)  land 
B)  capital 
C)  work ethic of workforce 
D)  educational level of workforce

Question 3

Which of the following statements is most likely true?

Accepted Answer

A)  Japan eliminated all protectionist policies after WWII. 
B)  Nearly all countries have some neomercantilist policies. 
C)  China is one of the few countries with protectionist policies. 
D)  EU countries are supportive of U.S. neomercantilist policies. 
A)  Japan eliminated all protectionist policies after WWII. 
B)  Nearly all countries have some neomercantilist policies. 
C)  China is one of the few countries with protectionist policies. 
D)  EU countries are supportive of U.S. neomercantilist policies.

Question 4

What are the primary forms of international business?

Accepted Answer

International trade and intern

Question 5

________ suggest that FDI will be more likely to occur when transaction costs with a second firm are high.

Accepted Answer

A)  Eclectic theory 
B)  Internalization theory 
C)  Ownership advantage theory 
D)  National competitive advantage 
A)  Eclectic theory 
B)  Internalization theory 
C)  Ownership advantage theory 
D)  National competitive advantage

Question 6

What does the relative factor endowment theory suggest about a country's comparative advantage?

Accepted Answer

The relative factor endowment

Question 7

Adam Smith developed the theory of comparative advantage.

Accepted Answer

A) True 
 B)False

Question 8

Which theory of international trade explains that success in international trade comes from the interaction of four country- and firm-specific elements?

Accepted Answer

A)  national competitive advantage 
B)  country similarity 
C)  absolute advantage 
D)  relative factor endowments 
A)  national competitive advantage 
B)  country similarity 
C)  absolute advantage 
D)  relative factor endowments

Question 9

What type of trade was the early country-based theories of international trade most useful in understanding?

Accepted Answer

A)  services 
B)  brand name goods 
C)  commodities 
D)  high-tech goods 
A)  services 
B)  brand name goods 
C)  commodities 
D)  high-tech goods

Question 10

France exports wine to Japan, and Japan exports clock radios to France. 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 11

Which theory answers the question, "What determines the products for which a country will have a comparative advantage?"

Accepted Answer

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

Question 12

Which trade theory is best at explaining trade in differentiated goods?

Accepted Answer

Linder's country similarity theory argue

Question 13

Leontief found that the United States was producing and exporting capital-intensive goods.

Accepted Answer

A) True 
 B)False

Question 14

Why did country-based trade theories develop? Why did firm-based trade theories develop?

Accepted Answer

The first theories of international trad

Question 15

Which of the following has minimal influence on a firm's decision to undertake foreign direct investment?

Accepted Answer

A)  supply factors 
B)  political factors 
C)  demand factors 
D)  relative endowment factors 
A)  supply factors 
B)  political factors 
C)  demand factors 
D)  relative endowment factors

Question 16

The country similarity theory argues that most trade in manufactured goods should be between countries with similar levels of economic development.

Accepted Answer

A) True 
 B)False

Question 17

The theory of ________ maintains that a country's wealth is measured by its holdings of gold and silver.

Accepted Answer

A)  mercantilism 
B)  neomercantilism 
C)  competitive advantage 
D)  comparative advantage 
A)  mercantilism 
B)  neomercantilism 
C)  competitive advantage 
D)  comparative advantage

Question 18

According to internalization theory, firms are more likely to license their brand names when transaction costs are high.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a form of foreign direct investment?

Accepted Answer

A)  foreign stock ownership 
B)  foreign bond ownership 
C)  participation in a joint venture 
D)  mutual fund ownership 
A)  foreign stock ownership 
B)  foreign bond ownership 
C)  participation in a joint venture 
D)  mutual fund ownership

Question 20

Most of the investments made by sovereign wealth funds (SWFs) have been passive in nature.

Accepted Answer

A) True 
 B)False

The country similarity theory ________.

Which of the following factors are not included in Porter's view of factor endowments?

Which of the following statements is most likely true?

What are the primary forms of international business?

________ suggest that FDI will be more likely to occur when transaction costs with a second firm are high.

What does the relative factor endowment theory suggest about a country's comparative advantage?

Adam Smith developed the theory of comparative advantage.

Which theory of international trade explains that success in international trade comes from the interaction of four country- and firm-specific elements?

What type of trade was the early country-based theories of international trade most useful in understanding?

France exports wine to Japan, and Japan exports clock radios to France. This is an example of ________.

Which theory answers the question, "What determines the products for which a country will have a comparative advantage?"

Which trade theory is best at explaining trade in differentiated goods?

Leontief found that the United States was producing and exporting capital-intensive goods.

Why did country-based trade theories develop? Why did firm-based trade theories develop?

Which of the following has minimal influence on a firm's decision to undertake foreign direct investment?

The country similarity theory argues that most trade in manufactured goods should be between countries with similar levels of economic development.

The theory of ________ maintains that a country's wealth is measured by its holdings of gold and silver.

According to internalization theory, firms are more likely to license their brand names when transaction costs are high.

Which of the following is a form of foreign direct investment?

Most of the investments made by sovereign wealth funds (SWFs) have been passive in nature.

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

The country similarity theory ________.

Which of the following factors are not included in Porter's view of factor endowments?

Which of the following statements is most likely true?

What are the primary forms of international business?

________ suggest that FDI will be more likely to occur when transaction costs with a second firm are high.

What does the relative factor endowment theory suggest about a country's comparative advantage?

Adam Smith developed the theory of comparative advantage.

Which theory of international trade explains that success in international trade comes from the interaction of four country- and firm-specific elements?

What type of trade was the early country-based theories of international trade most useful in understanding?

France exports wine to Japan, and Japan exports clock radios to France. This is an example of ________.

Which theory answers the question, "What determines the products for which a country will have a comparative advantage?"

Which trade theory is best at explaining trade in differentiated goods?

Leontief found that the United States was producing and exporting capital-intensive goods.

Why did country-based trade theories develop? Why did firm-based trade theories develop?

Which of the following has minimal influence on a firm's decision to undertake foreign direct investment?

The country similarity theory argues that most trade in manufactured goods should be between countries with similar levels of economic development.

The theory of ________ maintains that a country's wealth is measured by its holdings of gold and silver.

According to internalization theory, firms are more likely to license their brand names when transaction costs are high.

Which of the following is a form of foreign direct investment?

Most of the investments made by sovereign wealth funds (SWFs) have been passive in nature.

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