Exam 2: The Evolution of International Business

The ability of one country to produce a good or service more efficiently than another is called a(n)_____.

Porter stresses the importance of domestic demand for goods and services when determining a nation's competitive advantage. When domestic demand remains high, the number of suppliers will also be high.

Of the following, which is NOT in the socio-economic category of managed trade?

Who authored The Competitive Advantage of Nations?

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

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

A group of countries that could effectively control export volume to keep their export prices, revenues, and economic growth stable or high is known as a(n)_____.

Foreign direct investment (FDI)in a country brings funds and business culture from abroad, creates new well-paying jobs, introduces innovative technologies, and enhances the skills of domestic workers.

During the mid-18ᵗʰ century, British economist ________, who came to be known as the father of free market and open trade systems, recognized the absurdity of Mercantilism.

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 reached between Power Trip and the two foreign nations where they would sell components to Power Trip in exchange for allowing sales of its products within their borders most closely resembles which one of the following?

______ refers to taxes on imports (also known as custom duties in some countries).

Briefly explain the socio-economic and geo-political rationales that policymakers in countries use in practicing managed trade.

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.

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)_____.

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

An ad valorem tariff describes a tax on imports levied as a constant percentage of the monetary value of one unit of the imported good.

Trade sanctions which are imposed upon a nation to restrict trade with that country refers to _______.

The _____ theory attributes the comparative advantage of a nation to its factor endowments.

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