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

Product differentiation and internal economies of scale yield gains from trade in the form of

Under oligopoly,firms' pricing policies are and,under monopolistic competition,they are .

We often observe "pseudo- intra- industry trade" between the United States and Mexico.Actually,such trade is consistent with

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

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

Modeling trade in imperfectly competitive industries is problematic because

Two countries engaged in trade in products with scale economies,produced under conditions of monopolistic competition,are likely to be engaged in

If a firm increases its output in the and unit costs ,then the firm is experiencing of scale.

If a firm increases its output in the and unit costs ,then the firm is experiencing of scale.

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

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

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

A monopoly firm will maximize profits by producing where

A monopoly firm engaged in international trade will

Firms that produce products must be competitive.

When a multinational affiliate replicates elements of a production process in a foreign country it is called foreign direct investment.

A corporation is considered a multinational if _ .

Two countries engaged in trade in products with no scale economies,produced under conditions of perfect competition,are likely to be engaged in