Exam 2: The Evolution of International Business

The United States, the European Union, and Australia imposed various trade sanctions on _____ because of that country's annexation of Crimea and military actin in east Ukraine.

Of the following, which is NOT in the geo-political category of managed trade?

Scenario - The Audrey Firm The Audrey Firm is an international trade consulting firm currently providing its services in eight foreign nations.  The primary goal of this company is to prevent trade missteps from taking place between foreign nations conducting business with each other.  The participating nations prefer to seek counsel with this firm before any of their actions result in major international involvement or World Trade Organization intervention. In the past, the Audrey Firm's team of experts has handled international situations having the potential to create serious unrest between neighboring countries.  Their guidance and expertise have been successful in keeping trade operating freely in several areas of the globe.  The Audrey Firm is receiving an award for their exemplary service later this year in Washington D.C. Many of the clients engaging the services of the Audrey Firm practice managed trade.  All of the following would most likely be a practice these nations engage in when conducting trade with other nations except which one?

The world's two largest economies in terms of national income in the early-19^th century were _____.

The _______ objective is to sacrifice some economic efficiency for the greater good of the country in terms of national security, protection of critical industries, and international commerce.

Porter exemplifies China as a powerhouse for consumer electronics because of the quality and quantity of its engineers, and the ability and willingness of Chinese consumers to try out new electronic products that are perfected and later exported.

According to Porter's "diamond" model, the success or competitive advantage of a nation at the global stage depends upon the interaction of all of the following EXCEPT

Competitive industrial structures are unlikely to create innovative or dynamic firms willing to compete abroad. However, a monopolistic industry will foster innovative, cost efficient, aggressive firms that can adjust to changing economic conditions at home and will be well prepared to compete abroad.

Defend the infant industry argument, using specific examples.

Under a preferential duties system, goods imported from a country outside the preferred group are subject to a higher tariff.

In the 3,000 B.C., Sumerian farmers realized that the grain surplus they produced could be used as barter for things they did not have. Therefore, the Sumerians obtained copper from Sinai Desert traders who were located several hundred miles to the west in order to make weapons and repel nomadic raiders. The Sumerians engaged in _____

Someone who believes in the infant industry argument would be MOST likely to support ______ for a new industry.

_______ refers to regulations that limit the amount or number of units of products that can be imported to a country.

Taxes on imports that are collected by a designated government agency responsible for regulating imports are called _____.

When the value of ______ exceeds the value of ______, this refers to trade surplus.

Of the following statements about foreign direct investment, which is NOT true?

One way international trade benefits consumers is by providing lower living standards.

Mercantilists believed that for a nation to become wealthy, that nation must export as much as possible and, in turn, import as little as possible.

The ability of one country that has an absolute advantage in the production of two or more goods (or services)to produce one of them relatively more efficiently than the other refers to ______.

Mercantilism refers to a theory of international trade that supports the premise that a nation could only gain from trade if it had a trade ______.