Question 1

A firm engaging in rent seeking activity

Accepted Answer

A) is breaking the law. 
B) is willing to spend up to the gain in producer surplus. 
C) is irrational. 
D) increases societal gain. 
A) is breaking the law. 
B) is willing to spend up to the gain in producer surplus. 
C) is irrational. 
D) increases societal gain.

Question 2

If the Mexican peso (MXN)to Brazilian real (BRL)exchange rate goes from 5.9 MXN/BRL to 5.2 MXN/BRL

Accepted Answer

A) Brazilians decrease their demand for Mexican goods. 
B) Brazilians increase their demand for Mexican goods. 
C) Mexicans decrease their demand for Brazilian goods. 
D) Not enough information to determine what happens. 
A) Brazilians decrease their demand for Mexican goods. 
B) Brazilians increase their demand for Mexican goods. 
C) Mexicans decrease their demand for Brazilian goods. 
D) Not enough information to determine what happens.

Question 3

A firm becomes a multinational enterprise when

Accepted Answer

A) it lists its stock on a stock exchange other than the one in its home country. 
B) it undertakes foreign direct investment. 
C) it undertakes foreign portfolio investment. 
D) Any of the above. 
A) it lists its stock on a stock exchange other than the one in its home country. 
B) it undertakes foreign direct investment. 
C) it undertakes foreign portfolio investment. 
D) Any of the above.

Question 4

The cost of lobbying for an import quota in a perfectly competitive market

Accepted Answer

A) increases the welfare loss of the quota. 
B) decreases the deadweight loss of the quota. 
C) shifts the supply curve of the good to the left. 
D) increases the consumer surplus. 
A) increases the welfare loss of the quota. 
B) decreases the deadweight loss of the quota. 
C) shifts the supply curve of the good to the left. 
D) increases the consumer surplus.

Question 5

When a country opens up to free trade

Accepted Answer

A) winners and losers are created. 
B) comparative advantage dictates that the country focus on production of some goods and services at the expense of others. 
C) the gains outweigh the losses. 
D) All of the above. 
A) winners and losers are created. 
B) comparative advantage dictates that the country focus on production of some goods and services at the expense of others. 
C) the gains outweigh the losses. 
D) All of the above.

Question 6

If the U.S. can produce pizza for $5 each and barrels of beer for $25 each, and Germany can produce pizza for $7 each and barrels of beer for $21 each, then

Accepted Answer

A) each country will produce both pizza and beer. 
B) the U.S. will produce beer and trade with Germany for pizza. 
C) the U.S. will produce pizza and trade with Germany for beer. 
D) All of the above. 
A) each country will produce both pizza and beer. 
B) the U.S. will produce beer and trade with Germany for pizza. 
C) the U.S. will produce pizza and trade with Germany for beer. 
D) All of the above.

Question 7

-The above figure shows the market for rice in Japan. S₂ represents the domestic supply curve, and S1 represents the world supply curve. Currently 10 units are imported. The Consumption distortion loss is equal to

Accepted Answer

A) c + e. 
B) c. 
C) c + g + i. 
D) a + c + d + e. 
A) c + e. 
B) c. 
C) c + g + i. 
D) a + c + d + e.

Question 8

A trade policy that protects domestic producers from certain actions taken by foreign governments or firms is

Accepted Answer

A) illegal under WTO rules. 
B) called a contingent protection policy. 
C) considered a beggar-thy-neighbor policy. 
D) intended to protect domestic consumers. 
A) illegal under WTO rules. 
B) called a contingent protection policy. 
C) considered a beggar-thy-neighbor policy. 
D) intended to protect domestic consumers.

Question 9

A trade policy that allows a country to gain at the expense of other countries is called

Accepted Answer

A) countervailing duty policy. 
B) a beggar-thy-neighbor policy. 
C) an antitrust policy. 
D) a dumping policy. 
A) countervailing duty policy. 
B) a beggar-thy-neighbor policy. 
C) an antitrust policy. 
D) a dumping policy.

Question 10

Levying a tariff on an imported good

Accepted Answer

A) shifts the demand curve down for the good. 
B) shifts the supply curve up for the good. 
C) Both A and B. 
D) Not enough information to determine. 
A) shifts the demand curve down for the good. 
B) shifts the supply curve up for the good. 
C) Both A and B. 
D) Not enough information to determine.

Question 11

The transfer price between subsidiaries that maximizes profit for the parent company

Accepted Answer

A) is the marginal cost of the producing subsidiary. 
B) is the monopoly price of the producing subsidiary. 
C) cannot be determined in the absence of non-production cost considerations such as taxes. 
D) is the price that minimizes the purchasing subsidiary's marginal cost. 
A) is the marginal cost of the producing subsidiary. 
B) is the monopoly price of the producing subsidiary. 
C) cannot be determined in the absence of non-production cost considerations such as taxes. 
D) is the price that minimizes the purchasing subsidiary's marginal cost.

Question 12

A pollution haven is

Accepted Answer

A) a place where people actually like pollution and view it as a positive externality. 
B) a location with weak environmental rules that attracts manufacturing companies due to decreased costs. 
C) a place that has very low worker wages. 
D) unattractive for multinational investment because of the ambient pollution. 
A) a place where people actually like pollution and view it as a positive externality. 
B) a location with weak environmental rules that attracts manufacturing companies due to decreased costs. 
C) a place that has very low worker wages. 
D) unattractive for multinational investment because of the ambient pollution.

A firm engaging in rent seeking activity

If the Mexican peso (MXN)to Brazilian real (BRL)exchange rate goes from 5.9 MXN/BRL to 5.2 MXN/BRL

A firm becomes a multinational enterprise when

The cost of lobbying for an import quota in a perfectly competitive market

When a country opens up to free trade

If the U.S. can produce pizza for $5 each and barrels of beer for $25 each, and Germany can produce pizza for $7 each and barrels of beer for $21 each, then

-The above figure shows the market for rice in Japan. S₂ represents the domestic supply curve, and S₁ represents the world supply curve. Currently 10 units are imported. The Consumption distortion loss is equal to

A trade policy that protects domestic producers from certain actions taken by foreign governments or firms is

A trade policy that allows a country to gain at the expense of other countries is called

Levying a tariff on an imported good

The transfer price between subsidiaries that maximizes profit for the parent company

A pollution haven is

Introduction

Supply and Demand

Empirical Methods for Demand Analysis

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Filters

Exam 17: Global Business

A firm engaging in rent seeking activity

If the Mexican peso (MXN)to Brazilian real (BRL)exchange rate goes from 5.9 MXN/BRL to 5.2 MXN/BRL

A firm becomes a multinational enterprise when

The cost of lobbying for an import quota in a perfectly competitive market

When a country opens up to free trade

If the U.S. can produce pizza for $5 each and barrels of beer for $25 each, and Germany can produce pizza for $7 each and barrels of beer for $21 each, then

-The above figure shows the market for rice in Japan. S₂ represents the domestic supply curve, and S1 represents the world supply curve. Currently 10 units are imported. The Consumption distortion loss is equal to

A trade policy that protects domestic producers from certain actions taken by foreign governments or firms is

A trade policy that allows a country to gain at the expense of other countries is called

Levying a tariff on an imported good

The transfer price between subsidiaries that maximizes profit for the parent company

A pollution haven is

Introduction

Supply and Demand

Empirical Methods for Demand Analysis

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Filters

-The above figure shows the market for rice in Japan. S₂ represents the domestic supply curve, and S₁ represents the world supply curve. Currently 10 units are imported. The Consumption distortion loss is equal to