Exam 2: The Evolution of International Business

______ refers to an especially advantageous or low import tariff established by a nation for all or some goods of certain countries and not applied to the same goods of other countries.

Historically, the main instrument of trade policy has been _____.

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.

Factor price equalization theory, states that when factors are allowed to move freely among trading nations, efficiency increases, which leads to equality of factor prices among these countries.

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. -As one of the Audrey Firm's more prestigious clients, OPEC, which exemplifies an export cartel, requires constant overseeing to ensure it complies with the agreement arranged for export cartels. Which one of the following items is least likely to appear on this type of agreement?

Endowments used to produce goods and services are called ______.

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 _____

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

During the Soviet days, the government of India imported Soviet fighter jets and other defense hardware in exchange for Indian-made consumer goods such as soaps, detergents, and copy machines. This is an example of _____.

_______ refers to inflows of capital from abroad for investing in domestic plant and equipment for the production of goods and/or services as well as for buying domestic companies.

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.

A tax on imports levied as a constant percentage of the monetary value of one unit of the imported good refers to ______.

_____ refers to agreements, sometimes temporary, between countries (or a group of countries)that aim at achieving certain trade outcomes.

Differentiate between H-O theory and factor price equalization theory.

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)_____.

Compare and contrast theories of absolute and comparative advatages.

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

_______ refers to the temporary provision of protection to nascent industries that have good prospects of becoming globally competitive in the medium term.

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.

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