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

-The figure above represents the demand and cost functions facing a Brazilian steel producing monopolist. If it were unable to export, and was constrained by its domestic market, what quantity would it sell at what price?

A corporation is considered a multinational ________ if ________.

An industry is characterized by scale economies, and exists in two countries. Should these two countries engage in trade such that the combined market is supplied by one country's industry, then

During the past decade, U.S. imports of business services have ________, U.S. exports of business services have ________, and U.S. net exports of business services have ________.

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

-Refer to above figure. While selling exports it would also maximize its domestic sales by equating its marginal (opportunity) cost to its marginal revenue of $5. How much steel would the firm sell domestically, and at what price?

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.

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

The most common form of price discrimination in international trade is

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

Modeling trade in imperfectly competitive industries is problematic because

An industry is characterized by scale economies and exists in two countries. In order for consumers of its products to enjoy both lower prices and more variety of choice

Complaints are often made to the International Trade Commission concerning foreign "dumping" practices. These complaints typically claim that

When a country both exports and imports a type of commodity, the country is engaged in

Intra-industry trade will tend to dominate trade flows when which of the following exists?

A monopoly firm will maximize profits by producing where

A corporation is considered a multinational ________ if ________.

In an industry where firms experience internal scale economies, the long-run cost of production will depend on

We often observe "pseudo-intra-industry trade" between the United States and Mexico. Actually, such trade is consistent with