Question 1

The Heckscher-Ohlin theory is another name for the product life cycle theory.

Accepted Answer

A) True 
 B)False

Question 2

________ argued that firms struggle to develop some sustainable competitive advantage which they then exploit to dominate the global marketplace.

Accepted Answer

A)  Porter 
B)  Vernon 
C)  Heckscher and Ohlin 
D)  Krugman and Lancaster 
A)  Porter 
B)  Vernon 
C)  Heckscher and Ohlin 
D)  Krugman and Lancaster

Question 3

The first theories of international trade used ________ as a unit of analysis.

Accepted Answer

A)  individual countries 
B)  country clusters 
C)  regions 
D)  continents 
A)  individual countries 
B)  country clusters 
C)  regions 
D)  continents

Question 4

The primary flaw in the theory of absolute advantage is that the theory ________.

Accepted Answer

A)  confuses the acquisition of treasure with the acquisition of wealth 
B)  looks only at relative productivity differences rather than competitive differences 
C)  suggests that no trade will occur when one country has an absolute advantage in multiple products 
D)  incorporates the concept of opportunity cost in determining which goods a country should produce 
A)  confuses the acquisition of treasure with the acquisition of wealth 
B)  looks only at relative productivity differences rather than competitive differences 
C)  suggests that no trade will occur when one country has an absolute advantage in multiple products 
D)  incorporates the concept of opportunity cost in determining which goods a country should produce

Question 5

Which theory of international trade explains that success in international trade comes from the interaction of four country- and firm-specific elements?

Accepted Answer

A)  national competitive advantage 
B)  country similarity 
C)  absolute advantage 
D)  relative factor endowments 
A)  national competitive advantage 
B)  country similarity 
C)  absolute advantage 
D)  relative factor endowments

Question 6

________ represents passive holdings of securities such as foreign stocks, bonds, or other financial assets.

Accepted Answer

A)  Foreign direct investment 
B)  Foreign portfolio investment 
C)  Capital investment 
D)  Controlling ownership 
A)  Foreign direct investment 
B)  Foreign portfolio investment 
C)  Capital investment 
D)  Controlling ownership

Question 7

How can an MNE gain a competitive advantage by exploiting the experience curve? Provide an example to illustrate your answer.

Accepted Answer

Another source of firm-specific advantag

Question 8

Mercantilism ________.

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)  maintains that a country's wealth is measured by its holdings of gold and silver 
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)  maintains that a country's wealth is measured by its holdings of gold and silver 
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 9

How can firms develop a sustainable competitive advantage?

Accepted Answer

Firms can develop sustainable competitiv

Question 10

The country similarity theory suggests that most trade in manufactured goods should be between countries with similar ________.

Accepted Answer

A)  labor costs 
B)  per capita incomes 
C)  natural resources 
D)  cultures and languages 
A)  labor costs 
B)  per capita incomes 
C)  natural resources 
D)  cultures and languages

The Heckscher-Ohlin theory is another name for the product life cycle theory.

________ argued that firms struggle to develop some sustainable competitive advantage which they then exploit to dominate the global marketplace.

The first theories of international trade used ________ as a unit of analysis.

The primary flaw in the theory of absolute advantage is that the theory ________.

Which theory of international trade explains that success in international trade comes from the interaction of four country- and firm-specific elements?

________ represents passive holdings of securities such as foreign stocks, bonds, or other financial assets.

How can an MNE gain a competitive advantage by exploiting the experience curve? Provide an example to illustrate your answer.

Mercantilism ________.

How can firms develop a sustainable competitive advantage?

The country similarity theory suggests that most trade in manufactured goods should be between countries with similar ________.

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

The Heckscher-Ohlin theory is another name for the product life cycle theory.

________ argued that firms struggle to develop some sustainable competitive advantage which they then exploit to dominate the global marketplace.

The first theories of international trade used ________ as a unit of analysis.

The primary flaw in the theory of absolute advantage is that the theory ________.

Which theory of international trade explains that success in international trade comes from the interaction of four country- and firm-specific elements?

________ represents passive holdings of securities such as foreign stocks, bonds, or other financial assets.

How can an MNE gain a competitive advantage by exploiting the experience curve? Provide an example to illustrate your answer.

Mercantilism ________.

How can firms develop a sustainable competitive advantage?

The country similarity theory suggests that most trade in manufactured goods should be between countries with similar ________.

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