Question 1

North Americans and Europeans have long applauded Japan's open door policy with regard to imports.

Accepted Answer

A) True 
 B)False

Question 2

What type of trade were the early country-based theories of international trade most useful in understanding?

Accepted Answer

A)  services 
B)  brand name goods 
C)  commodities 
D)  high-tech goods 
A)  services 
B)  brand name goods 
C)  commodities 
D)  high-tech goods

Question 3

Which of the following factors are not included in Porter's view of factor endowments?

Accepted Answer

A)  land 
B)  capital 
C)  work ethic of workforce 
D)  educational level of workforce 
A)  land 
B)  capital 
C)  work ethic of workforce 
D)  educational level of workforce

Question 4

What are the top three sources of FDI for the United States? What are the top three destinations for FDI from the United States?

Accepted Answer

The three countries providing

Question 5

Pandora Housewares is an MNE with production facilities in Taiwan, England, and India that manufacture bedding, towels, clothing, and luggage. Pandora has benefited from ________ because the firm's average costs have decreased as the number of different products it sells has increased.

Accepted Answer

A)  economies of scope 
B)  intellectual property rights 
C)  economies of scale 
D)  experience curve exploitation 
A)  economies of scope 
B)  intellectual property rights 
C)  economies of scale 
D)  experience curve exploitation

Question 6

Ellis, a manager at an MNE, is studying international trade theories. In his current position, Ellis would most likely use this knowledge to ________.

Accepted Answer

A)  lobby for trade policy changes 
B)  identify promising new markets 
C)  predict factors that motivate trade 
D)  analyze foreign exchange markets 
A)  lobby for trade policy changes 
B)  identify promising new markets 
C)  predict factors that motivate trade 
D)  analyze foreign exchange markets

Question 7

Explain what determines the products for which a country has a comparative advantage.

Accepted Answer

Heckscher and Ohlin explored the questio

Question 8

The theory of ________ maintains that a country's wealth is measured by its holdings of gold and silver.

Accepted Answer

A)  mercantilism 
B)  neomercantilism 
C)  competitive advantage 
D)  comparative advantage 
A)  mercantilism 
B)  neomercantilism 
C)  competitive advantage 
D)  comparative advantage

Question 9

According to the text, which of the following is negatively affecting FDI in Russia?

Accepted Answer

A)  infrastructure 
B)  labor pool 
C)  natural resources 
D)  legal system 
A)  infrastructure 
B)  labor pool 
C)  natural resources 
D)  legal system

Question 10

Japan exports Toshiba Computers to the United States, and the United States exports Apple Computers to Japan. This is an example of ________.

Accepted Answer

A)  mercantilism 
B)  diversification 
C)  interindustry trade 
D)  intraindustry trade 
A)  mercantilism 
B)  diversification 
C)  interindustry trade 
D)  intraindustry trade

Question 11

Which theory promotes the notion of specializing in what you do relatively best?

Accepted Answer

A)  country similarity 
B)  comparative advantage 
C)  product life cycle 
D)  absolute advantage 
A)  country similarity 
B)  comparative advantage 
C)  product life cycle 
D)  absolute advantage

Question 12

Why was Adam Smith opposed to mercantilism? What was the premise of Smith's theory?

Accepted Answer

According to Adam Smith, the Scottish ec

Question 13

For the ________ advantage to accrue, undertaking the business activity must be more profitable overseas than undertaking it locally.

Accepted Answer

A)  ownership 
B)  location 
C)  home country 
D)  internalization 
A)  ownership 
B)  location 
C)  home country 
D)  internalization

Question 14

Foreign portfolio investments are most likely motivated by the desire for ________.

Accepted Answer

A)  risk reduction 
B)  controlling ownership 
C)  active management 
D)  immediate globalization 
A)  risk reduction 
B)  controlling ownership 
C)  active management 
D)  immediate globalization

Question 15

Who developed the eclectic theory of international investment?

Accepted Answer

A)  Steffan Linder 
B)  Raymond Vernon 
C)  Michael Porter 
D)  John Dunning 
A)  Steffan Linder 
B)  Raymond Vernon 
C)  Michael Porter 
D)  John Dunning

Question 16

During which century were the first theories of international trade developed?

Accepted Answer

A)  sixteenth 
B)  seventeenth 
C)  eighteenth 
D)  nineteenth 
A)  sixteenth 
B)  seventeenth 
C)  eighteenth 
D)  nineteenth

Question 17

Dunning suggests that FDI will occur when there is an ownership advantage, a location advantage, and an internalization advantage.

Accepted Answer

A) True 
 B)False

Question 18

The Heckscher-Ohlin 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

Question 19

Krugman and Lancaster predict that intraindustry trade will be rare.

Accepted Answer

A) True 
 B)False

Question 20

Why did country-based trade theories develop? Why did firm-based trade theories develop?

Accepted Answer

The first theories of international trad

North Americans and Europeans have long applauded Japan's open door policy with regard to imports.

What type of trade were the early country-based theories of international trade most useful in understanding?

Which of the following factors are not included in Porter's view of factor endowments?

What are the top three sources of FDI for the United States? What are the top three destinations for FDI from the United States?

Pandora Housewares is an MNE with production facilities in Taiwan, England, and India that manufacture bedding, towels, clothing, and luggage. Pandora has benefited from ________ because the firm's average costs have decreased as the number of different products it sells has increased.

Ellis, a manager at an MNE, is studying international trade theories. In his current position, Ellis would most likely use this knowledge to ________.

Explain what determines the products for which a country has a comparative advantage.

The theory of ________ maintains that a country's wealth is measured by its holdings of gold and silver.

According to the text, which of the following is negatively affecting FDI in Russia?

Japan exports Toshiba Computers to the United States, and the United States exports Apple Computers to Japan. This is an example of ________.

Which theory promotes the notion of specializing in what you do relatively best?

Why was Adam Smith opposed to mercantilism? What was the premise of Smith's theory?

For the ________ advantage to accrue, undertaking the business activity must be more profitable overseas than undertaking it locally.

Foreign portfolio investments are most likely motivated by the desire for ________.

Who developed the eclectic theory of international investment?

During which century were the first theories of international trade developed?

Dunning suggests that FDI will occur when there is an ownership advantage, a location advantage, and an internalization advantage.

The Heckscher-Ohlin theory ________.

Krugman and Lancaster predict that intraindustry trade will be rare.

Why did country-based trade theories develop? Why did firm-based trade theories develop?

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

North Americans and Europeans have long applauded Japan's open door policy with regard to imports.

What type of trade were the early country-based theories of international trade most useful in understanding?

Which of the following factors are not included in Porter's view of factor endowments?

What are the top three sources of FDI for the United States? What are the top three destinations for FDI from the United States?

Pandora Housewares is an MNE with production facilities in Taiwan, England, and India that manufacture bedding, towels, clothing, and luggage. Pandora has benefited from ________ because the firm's average costs have decreased as the number of different products it sells has increased.

Ellis, a manager at an MNE, is studying international trade theories. In his current position, Ellis would most likely use this knowledge to ________.

Explain what determines the products for which a country has a comparative advantage.

The theory of ________ maintains that a country's wealth is measured by its holdings of gold and silver.

According to the text, which of the following is negatively affecting FDI in Russia?

Japan exports Toshiba Computers to the United States, and the United States exports Apple Computers to Japan. This is an example of ________.

Which theory promotes the notion of specializing in what you do relatively best?

Why was Adam Smith opposed to mercantilism? What was the premise of Smith's theory?

For the ________ advantage to accrue, undertaking the business activity must be more profitable overseas than undertaking it locally.

Foreign portfolio investments are most likely motivated by the desire for ________.

Who developed the eclectic theory of international investment?

During which century were the first theories of international trade developed?

Dunning suggests that FDI will occur when there is an ownership advantage, a location advantage, and an internalization advantage.

The Heckscher-Ohlin theory ________.

Krugman and Lancaster predict that intraindustry trade will be rare.

Why did country-based trade theories develop? Why did firm-based trade theories develop?

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