Exam 6: International Trade and Investment

Which of the following is one of the stages in the international product life cycle theory?

Porter's theory of national competitive advantage can best be described as a ________.

MAX Electronics produces tiny wireless speakers that can be used with computers and MP3 players. The firm has built new factories to expand capacity and meet increasing domestic and foreign demand. Over the last six months, foreign and domestic competitors have emerged with a similar product in an attempt to benefit from high consumer demand. MAX Electronics is most likely in the ________ product stage of the product life cycle.

Who is the father of free market economics?

Foreign portfolio investments are most likely motivated by the desire for ________.

World trade initially grew after World War II, but in the last decade has dropped off and been replaced with FDI.

Why was Adam Smith opposed to mercantilism? What was the premise of Smith's theory?

________ argued that firms struggle to develop some sustainable competitive advantage which they then exploit to dominate the global marketplace.

Which statement is asserted by the theory of absolute advantage?

According to Porter, agglomeration economies lead to which of the following?

Adam Smith attacked the intellectual basis of mercantilism in 1776.

The primary flaw in the theory of absolute advantage is that the theory ________.

Who developed the theory of national competitive advantage?

Foreign direct investment is acquisition of foreign assets for the purpose of controlling them.

Saudi Arabia has large crude oil reserves, and Bangladesh has a large pool of skilled workers. These are both examples of ________.

What are the indirect effects of international trade? How do exports spark economic activity in a country?

Which of the following is not a government incentive that often acts as a catalyst for FDI?

Coffman Electronics produces small, portable printers. The market for the product has stabilized, and Coffman has shifted production to Taiwan. However, Coffman's marketing department in the United States remains responsible for advertising and branding decisions. Coffman Electronics is most likely in the ________ product stage of the product life cycle.

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

The firm-based theories developed after World War II help explain patterns of trade in commodities.