Question 1

Which of the following benefited the LEAST from mercantilist policies?

Accepted Answer

A)  monarchs 
B)  local politicians 
C)  individual consumers 
D)  domestic manufacturers 
A)  monarchs 
B)  local politicians 
C)  individual consumers 
D)  domestic manufacturers

Question 2

The firm-based theories developed after World War II help explain patterns of trade in commodities.

Accepted Answer

A) True 
 B)False

Question 3

What is the difference between interindustry trade and intraindustry trade? Provide an example to illustrate your answer.

Accepted Answer

Interindustry trade is the exchange of g

Question 4

What is foreign direct investment? What has happened to the stock of foreign direct investment over the last 30 years? Why do you think this has occurred?

Accepted Answer

Foreign direct investment (FDI) is acqui

Question 5

According to the international product life cycle theory, domestic production peaks in stage two.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a characteristic of most Mittelstand firms?

Accepted Answer

A)  emphasis on low price guarantees 
B)  reliance on global supply chains 
C)  dependence on foreign investors 
D)  specialization in product niches 
A)  emphasis on low price guarantees 
B)  reliance on global supply chains 
C)  dependence on foreign investors 
D)  specialization in product niches

Question 7

Thanks to the emergence of China as a major exporting nation, Japan, Canada, the EU, and the U.S. countries accounted for just 30 percent of the world's merchandise exports in 2009.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is a condition of Dunning's eclectic theory?

Accepted Answer

A)  The firm must own a competitive advantage that overcomes competing against foreign firms in their markets. 
B)  Research and development costs must outweigh expenses related to foreign direct investment. 
C)  The firm must benefit more from outsourcing a service than controlling a foreign business. 
D)  Business activity must be more profitable in a domestic location than in a foreign location. 
A)  The firm must own a competitive advantage that overcomes competing against foreign firms in their markets. 
B)  Research and development costs must outweigh expenses related to foreign direct investment. 
C)  The firm must benefit more from outsourcing a service than controlling a foreign business. 
D)  Business activity must be more profitable in a domestic location than in a foreign location.

Question 9

The country similarity theory argues that most trade in manufactured goods should be between countries with similar per capita incomes.

Accepted Answer

A) True 
 B)False

Question 10

Who is the father of free market economics?

Accepted Answer

A)  David Ricardo 
B)  Michael Porter 
C)  Adam Smith 
D)  John Dunning 
A)  David Ricardo 
B)  Michael Porter 
C)  Adam Smith 
D)  John Dunning

Question 11

Your firm is considering the idea of foreign direct investment. What supply factors and demand factors are most relevant in this decision?

Accepted Answer

Production costs, logistics, resource av

Question 12

The ________ suggests that a firm owning a valuable asset that creates a competitive advantage domestically can use that advantage to penetrate foreign markets through FDI.

Accepted Answer

A)  national competitive advantage 
B)  comparative advantage 
C)  relative factor endowments 
D)  ownership advantage theory 
A)  national competitive advantage 
B)  comparative advantage 
C)  relative factor endowments 
D)  ownership advantage theory

Question 13

Briefly explain the connection between transaction costs and internalization theory.

Accepted Answer

Transaction costs are the costs of enter

Question 14

Which of the following is not one of the stages in the international product life cycle theory?

Accepted Answer

A)  new product 
B)  modified product 
C)  maturing product 
D)  standardized product 
A)  new product 
B)  modified product 
C)  maturing product 
D)  standardized product

Question 15

The ________ of a good is the value of what is given up to get the good.

Accepted Answer

A)  relative cost 
B)  opportunity cost 
C)  absolute cost 
D)  discount cost 
A)  relative cost 
B)  opportunity cost 
C)  absolute cost 
D)  discount cost

Question 16

Which of the following has the LEAST influence on a firm's decision to undertake foreign direct investment?

Accepted Answer

A)  supply factors 
B)  political factors 
C)  demand factors 
D)  relative endowment factors 
A)  supply factors 
B)  political factors 
C)  demand factors 
D)  relative endowment factors

Question 17

Which of the following was determined by Leontief?

Accepted Answer

A)  U.S. exports were less capital intensive than imports. 
B)  U.S. exports were more capital intensive than imports. 
C)  Relative factor endowments were not a factor in determining trade patterns. 
D)  Specialization was not a factor in determining imports and exports. 
A)  U.S. exports were less capital intensive than imports. 
B)  U.S. exports were more capital intensive than imports. 
C)  Relative factor endowments were not a factor in determining trade patterns. 
D)  Specialization was not a factor in determining imports and exports.

Question 18

What theories are categorized as firm-based theories? Which theories are categorized as country-based trade theories? What does each type of theory help explain?

Accepted Answer

Country similarity theory, product life

Question 19

Explain the four elements of Porter's national competitive advantage theory.

Accepted Answer

The four elements are 1) factor conditio

Question 20

Brand name is an important component in a customer's purchase decision for commodities.

Accepted Answer

A) True 
 B)False

Which of the following benefited the LEAST from mercantilist policies?

The firm-based theories developed after World War II help explain patterns of trade in commodities.

What is the difference between interindustry trade and intraindustry trade? Provide an example to illustrate your answer.

What is foreign direct investment? What has happened to the stock of foreign direct investment over the last 30 years? Why do you think this has occurred?

According to the international product life cycle theory, domestic production peaks in stage two.

Which of the following is a characteristic of most Mittelstand firms?

Thanks to the emergence of China as a major exporting nation, Japan, Canada, the EU, and the U.S. countries accounted for just 30 percent of the world's merchandise exports in 2009.

Which of the following is a condition of Dunning's eclectic theory?

The country similarity theory argues that most trade in manufactured goods should be between countries with similar per capita incomes.

Who is the father of free market economics?

Your firm is considering the idea of foreign direct investment. What supply factors and demand factors are most relevant in this decision?

The ________ suggests that a firm owning a valuable asset that creates a competitive advantage domestically can use that advantage to penetrate foreign markets through FDI.

Briefly explain the connection between transaction costs and internalization theory.

Which of the following is not one of the stages in the international product life cycle theory?

The ________ of a good is the value of what is given up to get the good.

Which of the following has the LEAST influence on a firm's decision to undertake foreign direct investment?

Which of the following was determined by Leontief?

What theories are categorized as firm-based theories? Which theories are categorized as country-based trade theories? What does each type of theory help explain?

Explain the four elements of Porter's national competitive advantage theory.

Brand name is an important component in a customer's purchase decision for commodities.

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

Which of the following benefited the LEAST from mercantilist policies?

The firm-based theories developed after World War II help explain patterns of trade in commodities.

What is the difference between interindustry trade and intraindustry trade? Provide an example to illustrate your answer.

What is foreign direct investment? What has happened to the stock of foreign direct investment over the last 30 years? Why do you think this has occurred?

According to the international product life cycle theory, domestic production peaks in stage two.

Which of the following is a characteristic of most Mittelstand firms?

Thanks to the emergence of China as a major exporting nation, Japan, Canada, the EU, and the U.S. countries accounted for just 30 percent of the world's merchandise exports in 2009.

Which of the following is a condition of Dunning's eclectic theory?

The country similarity theory argues that most trade in manufactured goods should be between countries with similar per capita incomes.

Who is the father of free market economics?

Your firm is considering the idea of foreign direct investment. What supply factors and demand factors are most relevant in this decision?

The ________ suggests that a firm owning a valuable asset that creates a competitive advantage domestically can use that advantage to penetrate foreign markets through FDI.

Briefly explain the connection between transaction costs and internalization theory.

Which of the following is not one of the stages in the international product life cycle theory?

The ________ of a good is the value of what is given up to get the good.

Which of the following has the LEAST influence on a firm's decision to undertake foreign direct investment?

Which of the following was determined by Leontief?

What theories are categorized as firm-based theories? Which theories are categorized as country-based trade theories? What does each type of theory help explain?

Explain the four elements of Porter's national competitive advantage theory.

Brand name is an important component in a customer's purchase decision for commodities.

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