Question 1

All of the following are examples of differentiated products except ________.

Accepted Answer

A)  lumber 
B)  cameras 
C)  shampoo 
D)  automobiles 
A)  lumber 
B)  cameras 
C)  shampoo 
D)  automobiles A

Question 2

The country similarity theory ________.

Accepted Answer

A)  suggests that a country should export those goods for which it is more productive than other countries and trade for those goods for which other countries are more productive 
B)  states that a country should produce and export those goods for which it is relatively more productive than other countries and import those goods for which other countries are relatively more productive than it is 
C)  suggests that a country will have a comparative advantage in producing products that intensively use resources it has in abundance 
D)  argues that most trade in manufactured goods should be between countries with similar per capita incomes 
A)  suggests that a country should export those goods for which it is more productive than other countries and trade for those goods for which other countries are more productive 
B)  states that a country should produce and export those goods for which it is relatively more productive than other countries and import those goods for which other countries are relatively more productive than it is 
C)  suggests that a country will have a comparative advantage in producing products that intensively use resources it has in abundance 
D)  argues that most trade in manufactured goods should be between countries with similar per capita incomes D

Question 3

Since World War II, world trade has ________.

Accepted Answer

A)  grown slightly 
B)  shrunk slightly 
C)  shrunk significantly 
D)  grown dramatically 
A)  grown slightly 
B)  shrunk slightly 
C)  shrunk significantly 
D)  grown dramatically D

Question 4

Which of the following statements is most likely true?

Accepted Answer

A)  Japan eliminated all protectionist policies after WWII. 
B)  Nearly all countries have some neomercantilist policies. 
C)  China is one of the few countries with protectionist policies. 
D)  EU countries are supportive of U.S. neomercantilist policies. 
A)  Japan eliminated all protectionist policies after WWII. 
B)  Nearly all countries have some neomercantilist policies. 
C)  China is one of the few countries with protectionist policies. 
D)  EU countries are supportive of U.S. neomercantilist policies.

Question 5

Political factors do not affect a firm's decision to undertake foreign direct investment.

Accepted Answer

A) True 
 B)False

Question 6

Porter's theory of national competitive advantage can best be described as a ________.

Accepted Answer

A)  country-based theory 
B)  firm-based theory 
C)  hybrid of country-based and firm-based theories 
D)  government-focused theory based on economies of scale 
A)  country-based theory 
B)  firm-based theory 
C)  hybrid of country-based and firm-based theories 
D)  government-focused theory based on economies of scale

Question 7

Which theory answers the question, "What determines the products for which a country will have a comparative advantage?"

Accepted Answer

A)  relative advantage 
B)  absolute advantage 
C)  relative factor endowments 
D)  specialization of countries 
A)  relative advantage 
B)  absolute advantage 
C)  relative factor endowments 
D)  specialization of countries

Question 8

Examples of ownership advantage include all of the following except ________.

Accepted Answer

A)  brand name 
B)  economies of scale 
C)  intellectual property 
D)  benefits of outsourcing 
A)  brand name 
B)  economies of scale 
C)  intellectual property 
D)  benefits of outsourcing

Question 9

Early theories of international trade focused on the patterns of exports and imports in individual countries.

Accepted Answer

A) True 
 B)False

Question 10

Supply factors affecting the decision to undertake FDI include all of the following except ________.

Accepted Answer

A)  logistics 
B)  production costs 
C)  customer mobility 
D)  access to key technology 
A)  logistics 
B)  production costs 
C)  customer mobility 
D)  access to key technology

Question 11

Which trade theory is best at explaining trade in differentiated goods?

Accepted Answer

Linder's country similarity theory argue

Question 12

According to mercantilism, what should a country's primary goal be?

Accepted Answer

A)  protecting citizens from unfair labor practices 
B)  encouraging imports to prevent resource depletion 
C)  promoting exports to enlarge gold and silver holdings 
D)  ensuring sufficient labor for low-wage jobs in the textile industry 
A)  protecting citizens from unfair labor practices 
B)  encouraging imports to prevent resource depletion 
C)  promoting exports to enlarge gold and silver holdings 
D)  ensuring sufficient labor for low-wage jobs in the textile industry

Question 13

According to mercantilism, a nation's wealth is determined by its holdings of gold and silver.

Accepted Answer

A) True 
 B)False

Question 14

Which statement is asserted by the theory of absolute advantage?

Accepted Answer

A)  A country should export those goods for which it is more productive than other countries and trade for those goods for which other countries are more productive. 
B)  A country should import goods from developing economies in order to maximize returns on profit and economies of scale. 
C)  A country will have a comparative advantage if it makes products that rely on global supply networks. 
D)  Most trade in manufactured goods should be between countries with similar per capita incomes. 
A)  A country should export those goods for which it is more productive than other countries and trade for those goods for which other countries are more productive. 
B)  A country should import goods from developing economies in order to maximize returns on profit and economies of scale. 
C)  A country will have a comparative advantage if it makes products that rely on global supply networks. 
D)  Most trade in manufactured goods should be between countries with similar per capita incomes.

Question 15

In the U.S., sugar growers, steel companies, and the AFL-CIO are supporters of mercantilist policies. These groups are best characterized as ________.

Accepted Answer

A)  protectionists 
B)  communists 
C)  isolationists 
D)  federalists 
A)  protectionists 
B)  communists 
C)  isolationists 
D)  federalists

Question 16

An "unfavorable" balance of trade indicates that a country's exports are less than its imports.

Accepted Answer

A) True 
 B)False

Question 17

Agglomeration economies occur when a firm's costs of production increase as the number of firms in that industry increase within a given area.

Accepted Answer

A) True 
 B)False

Question 18

Most countries have adopted some neomercantilist policies to protect key industries.

Accepted Answer

A) True 
 B)False

Question 19

Why does Heineken rely on FDI for much of its internationalization strategy?

Accepted Answer

Heineken relies on FDI for much of its i

Question 20

Which theory listed below is also called the Heckscher-Ohlin theory?

Accepted Answer

A)  relative advantage 
B)  comparative advantage 
C)  relative factor endowments 
D)  specialization of countries 
A)  relative advantage 
B)  comparative advantage 
C)  relative factor endowments 
D)  specialization of countries

All of the following are examples of differentiated products except ________.

The country similarity theory ________.

Since World War II, world trade has ________.

Which of the following statements is most likely true?

Political factors do not affect a firm's decision to undertake foreign direct investment.

Porter's theory of national competitive advantage can best be described as a ________.

Which theory answers the question, "What determines the products for which a country will have a comparative advantage?"

Examples of ownership advantage include all of the following except ________.

Early theories of international trade focused on the patterns of exports and imports in individual countries.

Supply factors affecting the decision to undertake FDI include all of the following except ________.

Which trade theory is best at explaining trade in differentiated goods?

According to mercantilism, what should a country's primary goal be?

According to mercantilism, a nation's wealth is determined by its holdings of gold and silver.

Which statement is asserted by the theory of absolute advantage?

In the U.S., sugar growers, steel companies, and the AFL-CIO are supporters of mercantilist policies. These groups are best characterized as ________.

An "unfavorable" balance of trade indicates that a country's exports are less than its imports.

Agglomeration economies occur when a firm's costs of production increase as the number of firms in that industry increase within a given area.

Most countries have adopted some neomercantilist policies to protect key industries.

Why does Heineken rely on FDI for much of its internationalization strategy?

Which theory listed below is also called the Heckscher-Ohlin theory?

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, Accounting, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters

Exam 6: International Trade and Investment

All of the following are examples of differentiated products except ________.

The country similarity theory ________.

Since World War II, world trade has ________.

Which of the following statements is most likely true?

Political factors do not affect a firm's decision to undertake foreign direct investment.

Porter's theory of national competitive advantage can best be described as a ________.

Which theory answers the question, "What determines the products for which a country will have a comparative advantage?"

Examples of ownership advantage include all of the following except ________.

Early theories of international trade focused on the patterns of exports and imports in individual countries.

Supply factors affecting the decision to undertake FDI include all of the following except ________.

Which trade theory is best at explaining trade in differentiated goods?

According to mercantilism, what should a country's primary goal be?

According to mercantilism, a nation's wealth is determined by its holdings of gold and silver.

Which statement is asserted by the theory of absolute advantage?

In the U.S., sugar growers, steel companies, and the AFL-CIO are supporters of mercantilist policies. These groups are best characterized as ________.

An "unfavorable" balance of trade indicates that a country's exports are less than its imports.

Agglomeration economies occur when a firm's costs of production increase as the number of firms in that industry increase within a given area.

Most countries have adopted some neomercantilist policies to protect key industries.

Why does Heineken rely on FDI for much of its internationalization strategy?

Which theory listed below is also called the Heckscher-Ohlin theory?

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, Accounting, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters