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

A firm's foreign direct investment.decisions are,in the case of horizontal FDI,strongly influenced by ________ and,in the case of vertical FDI,strongly influenced by ________.

In the model of monopolistic competition,an increase in industry output will cause individual firms' demand curves to become ________,which will ________ demand for higher-priced goods and ________ demand for lower-priced goods.

Imperfectly competitive firms have a demand curve that ________ and a marginal revenue curve that ________ and is ________ the demand curve.

-The figure above represents the demand and cost functions facing a Brazilian Steel producing monopolist.The Brazilian firm is charging its foreign (U.S.)customers one half the price it is charging its domestic customers.Is this good or bad for the real income or economic welfare of the United States? Is the Brazilian firm engaged in dumping? Is this predatory behavior on the part of the Brazilian steel company?

In the model of monopolistic competition,if firms have ________ average cost curves,then opening trade will cause ________ firms to ________ the industry.

A corporation is considered a multinational ________ if ________.

Monopolistic competition is associated with

An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q.What is marginal cost equal to when Q = 10?

Under oligopoly,firms' pricing policies are ________ and,under monopolistic competition,they are ________.

An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q.What is total cost equal to when Q = 10?

Two countries engaged in trade in products with scale economies,produced under conditions of monopolistic competition,are likely to be engaged in

A monopoly firm engaged in international trade will

International trade based solely on internal scale economies in both countries is likely to be carried out by

When a multinational affiliate replicates elements of a production process in a foreign country it is called ________ foreign direct investment.

In the model of monopolistic competition,trade costs between countries will cause domestic and foreign markets to have ________ prices,________ quantities sold,and ________ profit levels.

In the model of monopolistic competition,an increase in industry output will ________ market shares and ________ profits of producers of higher-priced goods and will ________ market shares and ________ profits of producers of lower-priced goods.

When a multinational affiliate replicates production in a foreign country it is called ________ foreign direct investment.

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.

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

Foreign outsourcing is