Exam 8: Firms in the Global Economy: Export Decisions,Outsourcing,and Multinational Enterprises

Under the model of monopolistic competition,a(an)________ in the number of firms in the industry will cause ________ to ________.

A firm is more likely to engage in horizontal foreign direct investment if

In the model of monopolistic competition,compared to a firm with a higher marginal cost,a firm with a lower marginal cost will set a ________ price,produce ________ output,and earn ________ profits.

In an industry where firms experience internal scale economies,the long-run cost of production will depend on

If a firm increases its output in the ________ and unit costs ________,then the firm is experiencing ________ of scale.

Complaints are often made to the International Trade Commission concerning foreign "dumping" practices.These complaints typically claim that

A monopoly firm will maximize profits by producing where

An industry is characterized by scale economies and exists in two countries.In order for consumers of its products to enjoy both lower prices and more variety of choice

Trade without serious income distribution effects is most likely to happen

Two countries engaged in trade in products with no scale economies,produced under conditions of perfect competition,are likely to be engaged in

If the market for products produced by firms in a monopolistically competitive industry becomes ________,then there will be ________ firms and each firm will produce ________ output and charge a ________ price.

If a firm that uses a production process that yields economies of scale charges a price equal to ________,then profit will be ________.

The most common form of price discrimination in international trade is

Product differentiation and internal economies of scale yield gains from trade in the form of

If an industry is imperfectly competitive,and markets are segmented then

-Refer to above figure.Given the opportunity to sell at world prices,the marginal (opportunity)cost of selling a ton domestically is what?

What is the nature of the proximity-concentration tradeoff that firms have to deal with then making decisions regarding foreign direct investment?

The simultaneous export and import of widgets by the United States is an example of

-Refer to above figure.While selling exports it would also maximize its domestic sales by equating its marginal (opportunity)cost to its marginal revenue of $5.How much steel would the firm sell domestically,and at what price?

When a country both exports and imports a type of commodity,the country is engaged in