Exam 2: The Evolution of International Business

Of the following statements about trade, which is NOT true?

It is estimated that for every billion dollars worth of exports from the United States, 100,000 domestic jobs are created.

The U.S. government may require that apparel imported into the United States should use U.S. cotton, or use a certain amount of American labor. This is an example of a(n)_____.

Which of the following was NOT one of the top exporting nations in 2012?

The corporate practice of acquiring or producing quality goods or services at a lower cost abroad thereby eliminating domestic production is called _____.

The growth trends in China and India today illustrate the impact that international business has on blue-collar and white-collar workers in wealthy countries as relatively low-skill factory jobs as well as high-skill service profession jobs migrate overseas.

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 is called a(n)_____.

Until January 1, 2012, the price for ethanol consumers in the United States was higher than world free-market price by $0.54 per gallon because of the $0.54 per gallon tariff imposed by the U.S. government on ethanol imports. This is an example of a(n)_____ tariff.

The oldest form of trade theory is called _____.

The infant industry argument is part of the socio-economic category of managed trade.

Explain why mercantilism fell out of favor as a theory of international trade.

Which would a mercantilist value the MOST?

Suppose the United States exports automobiles to Saudi Arabia and agrees to import a corresponding value of oil from Saudi Arabia. This is an example of

Agreement in which an exporter of goods or services to another country commits to import goods or services of corresponding value from that country is called ______.

The key assumptions for the H-O theory to work are: (1)perfect immobility of factors of production among countries; and (2)_____.

The _____ states that when factors are allowed to move freely among trading nations, efficiency increases, which leads to price of factors becoming equal among countries.

______ refers to an external shock or development that could drastically change or hasten the course of economic development.

How does Porter's model of national competitive advantage differ from the Heckscher-Ohlin theory?

An agreement where a large number of developed counties permit duty-free imports of a selected list of products that originate from specific countries is known as _____.

Assume that because of soil and climatic conditions, Brazil is more efficient in the production of coffee than the United States. At the same time, the United States is more efficient in the production of apples than Brazil. Each of these countries can be said to have a(n)_____.