Exam 2: The Evolution of International Business

When was mercantilism practiced?

______ refers to an agreement among WTO countries in which any tariff concession granted by one member to any other country will automatically be extended to all other countries of WTO.

Endowments used to produce goods and services are called _____.

The two-way flow of exports and imports of goods and services is known as _____.

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 _____.

_______ refers to the corporate practice of acquiring or producing quality goods or services abroad at a lower cost thereby eliminating domestic production.

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

______ refers to a negative tariff or tax aimed at boosting exports.

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. -The clients of the Audrey Firm use various techniques to restrict imports to their countries other than tariffs. Which one of the following would not be considered a nontariff barrier used by the clients of the Audrey Firm?

Analysts believe that by 2020 _____will become the world's largest economy, followed by _____ and _____.

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.

Regulations requiring that a certain percentage of the value of import be sourced domestically refers to _______.

Briefly describe some of the main instruments of trade policy that countries use to interfere with free trade.

An agreement among WTO countries in which any tariff concession granted by one member to any other country will automatically be extended to all other countries of WTO is called the _____ principle.

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

When Poland entered the European Union -where there is free movement of labor across member countries -some of the abundant Polish plumbers migrated to the United Kingdom to fill the shortage there. The net result was that wages for plumbers in the U.K. stabilized or softened and wage rates for plumbers in Poland increased. As the U.K. consumer of plumbing services benefited from this development, one could argue that the real income of the British consumer was, therefore, enhanced. This is an example of the _____.

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?

When the value of exports exceeds the value of imports, this refers to ______.

All commercial transactions, both private and public between nations of the world refers to _________.

Dubai, a regional center for global companies, continues to attract sizable amounts of foreign investment given its strategic location, world-class infrastructure, and productive workforce.