Exam 2: The Evolution of International Business

Developed countries often resort to managed trade for reasons of unethical labor practices and violation of basic human rights.

Which of the following would NOT be considered a factor of production?

Scenario - Power Trip Unlimited, LLC Is it hurricane season?  Is there a tsunami warning?  Did an earthquake take place somewhere in the world?  While these are not pleasant questions to ask, the Miami, Florida-based business Power Trip Unlimited needs to be ready to quickly respond to such events.  This unique company offers a vast line of emergency generators and supplies to help individuals caught in the devastation these types of natural occurrences can create. Staffed by experts in the generator field, Power Tripp Unlimited has assisted numerous people begin the recovery process in the aftermath of a calamity.  In the past year alone, sales for this company have surpassed every goal that was set.  This financial boom occurred while the company conducted sales only in the U.S. market.Power Trip's management team now realizes that foreign markets such as India and China offer incredible opportunities for the company.  Both foreign nations desire to engage in trade with the company in exchange for allowing its products to be introduced within their borders.  India and China have agreed to supply Power Trip with several necessary components for its generators in exchange for allowing the company free operations inside their national boundaries.  Power Trip realizes there are numerous challenges facing the company in the foreign market arena.  But guided by the belief in the expertise of its staff and the quality of its products, it is ready to face any challenges foreign markets put in front of them.  This company stands eagerly poised awaiting its first international sale. The agreement between Power Trip Unlimited, China, and India to engage in foreign trade will ultimately provide greater opportunities for consumers of Power Trip's products.  Which one of the following is least likely to be considered a benefit of this trade agreement?    

Explain Porter's "Diamond" model of national competitive advantage.

The sale and purchase of goods and services across national borders is known as _____.

Which one of the following would be the least restrictive way in which India and China could impede sales of Power Trip's products within their borders despite the agreement to allow free operations of the company within their nations' boundaries?