Question 1

By trying to be self-sufficient and producing a wide range of goods,mercantilist policies help sustain the wealth of a nation in the long run.

Accepted Answer

A) True 
 B)False

Question 2

The product life cycle theory is popularly known as the "diamond" theory.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following describes resource mobility as assumed by the classical theories of international trade?

Accepted Answer

A)  It is the assumption that a resource used in producing a product for one industry can be shifted and put to use in another industry. 
B)  It is the notion that countries should share their resources freely with other countries. 
C)  It is the expectation that all resource-based transactions will have no foreign exchange complications. 
D)  It is the assertion that all resources of a nation should be directly controlled by the government. 
A)  It is the assumption that a resource used in producing a product for one industry can be shifted and put to use in another industry. 
B)  It is the notion that countries should share their resources freely with other countries. 
C)  It is the expectation that all resource-based transactions will have no foreign exchange complications. 
D)  It is the assertion that all resources of a nation should be directly controlled by the government.

Question 4

The theory of national competitive advantage of industries assumes that comparative advantage always resides in the lead innovation nation.

Accepted Answer

A) True 
 B)False

Question 5

The _____ theory viewed international trade as a zero-sum game.

Accepted Answer

A)  comparative advantage 
B)  mercantilism 
C)  strategic trade 
D)  national competitive advantage of industries 
A)  comparative advantage 
B)  mercantilism 
C)  strategic trade 
D)  national competitive advantage of industries

Question 6

Which of the following ideas is closely linked to the theory of absolute advantage?

Accepted Answer

A)  All international trade must be closely regulated by governments. 
B)  Free market forces should determine how much to trade with minimal government intervention. 
C)  Governments should actively protect domestic industries from imports and vigorously promote exports. 
D)  Nations should specialize in economic activities in which they have comparative advantage. 
A)  All international trade must be closely regulated by governments. 
B)  Free market forces should determine how much to trade with minimal government intervention. 
C)  Governments should actively protect domestic industries from imports and vigorously promote exports. 
D)  Nations should specialize in economic activities in which they have comparative advantage.

Question 7

Antidumping duties are a type of tariff barrier.

Accepted Answer

A) True 
 B)False

Question 8

Trade deficit occurs when a nation exports more than it imports.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is true of the absolute advantage theory of international trade?

Accepted Answer

A)  It emphasizes relative advantage in one economic activity that one nation enjoys in comparison with other nations. 
B)  It divides the countries of the world into three categories based on innovation. 
C)  It advocates extensive government intervention in international trade. 
D)  It was the first theory that advocated free trade. 
A)  It emphasizes relative advantage in one economic activity that one nation enjoys in comparison with other nations. 
B)  It divides the countries of the world into three categories based on innovation. 
C)  It advocates extensive government intervention in international trade. 
D)  It was the first theory that advocated free trade.

Question 10

The product life cycle theory is the first dynamic theory to account for changes in the patterns of trade over time.

Accepted Answer

A) True 
 B)False

Question 11

_____ are the most direct denial of absolute or comparative advantage.

Accepted Answer

A)  Quotas 
B)  Tariffs 
C)  Local content requirements 
D)  Subsidies 
A)  Quotas 
B)  Tariffs 
C)  Local content requirements 
D)  Subsidies

Question 12

The absolute advantage theory is considered as the forerunner of the free trade movement.

Accepted Answer

A) True 
 B)False

Question 13

Local content requirements require a certain proportion of the value of the goods made in one country to originate from that country.

Accepted Answer

A) True 
 B)False

Question 14

Factor endowments is one of the four interacting aspects of the theory of national competitive?advantage of industries.

Accepted Answer

A) True 
 B)False

Question 15

_____ are politically motivated trade sanctions against foreign countries to signal displeasure.

Accepted Answer

A)  Trade embargoes 
B)  VERs 
C)  Subsidies 
D)  Antidumping duties 
A)  Trade embargoes 
B)  VERs 
C)  Subsidies 
D)  Antidumping duties

Question 16

Elaborate on Michael Porter's "diamond" theory.

Accepted Answer

The "diamond" theory focuses on why cert

Question 17

Protectionism is similar to mercantilism as they both advocated _____.

Accepted Answer

A)  dividing the nations of the world into three categories based on its innovation capabilities 
B)  developing comparative advantages based on a nation's locally abundant factors 
C)  specializing in economic activities in which a nation can have an absolute advantage 
D)  government involvement in international trade 
A)  dividing the nations of the world into three categories based on its innovation capabilities 
B)  developing comparative advantages based on a nation's locally abundant factors 
C)  specializing in economic activities in which a nation can have an absolute advantage 
D)  government involvement in international trade

Question 18

Deadweight costs are net losses that occur when _____ are imposed.

Accepted Answer

A)  import tariffs 
B)  import quotas 
C)  voluntary export restraints 
D)  local content requirements 
A)  import tariffs 
B)  import quotas 
C)  voluntary export restraints 
D)  local content requirements

Question 19

In the context of tariff barriers,deadweight = total inefficiency - net gain.

Accepted Answer

A) True 
 B)False

Question 20

In the context of NTBs,VERs are government payments to domestic firms.

Accepted Answer

A) True 
 B)False

By trying to be self-sufficient and producing a wide range of goods,mercantilist policies help sustain the wealth of a nation in the long run.

The product life cycle theory is popularly known as the "diamond" theory.

Which of the following describes resource mobility as assumed by the classical theories of international trade?

The theory of national competitive advantage of industries assumes that comparative advantage always resides in the lead innovation nation.

The _____ theory viewed international trade as a zero-sum game.

Which of the following ideas is closely linked to the theory of absolute advantage?

Antidumping duties are a type of tariff barrier.

Trade deficit occurs when a nation exports more than it imports.

Which of the following is true of the absolute advantage theory of international trade?

The product life cycle theory is the first dynamic theory to account for changes in the patterns of trade over time.

_____ are the most direct denial of absolute or comparative advantage.

The absolute advantage theory is considered as the forerunner of the free trade movement.

Local content requirements require a certain proportion of the value of the goods made in one country to originate from that country.

Factor endowments is one of the four interacting aspects of the theory of national competitive?advantage of industries.

_____ are politically motivated trade sanctions against foreign countries to signal displeasure.

Elaborate on Michael Porter's "diamond" theory.

Protectionism is similar to mercantilism as they both advocated _____.

Deadweight costs are net losses that occur when _____ are imposed.

In the context of tariff barriers,deadweight = total inefficiency - net gain.

In the context of NTBs,VERs are government payments to domestic firms.

Globalizing Business

Understanding Formal Institutions: Politics, laws, and Economics

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

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Exam 5: Trading Internationally

By trying to be self-sufficient and producing a wide range of goods,mercantilist policies help sustain the wealth of a nation in the long run.

The product life cycle theory is popularly known as the "diamond" theory.

Which of the following describes resource mobility as assumed by the classical theories of international trade?

The theory of national competitive advantage of industries assumes that comparative advantage always resides in the lead innovation nation.

The _____ theory viewed international trade as a zero-sum game.

Which of the following ideas is closely linked to the theory of absolute advantage?

Antidumping duties are a type of tariff barrier.

Trade deficit occurs when a nation exports more than it imports.

Which of the following is true of the absolute advantage theory of international trade?

The product life cycle theory is the first dynamic theory to account for changes in the patterns of trade over time.

_____ are the most direct denial of absolute or comparative advantage.

The absolute advantage theory is considered as the forerunner of the free trade movement.

Local content requirements require a certain proportion of the value of the goods made in one country to originate from that country.

Factor endowments is one of the four interacting aspects of the theory of national competitive?advantage of industries.

_____ are politically motivated trade sanctions against foreign countries to signal displeasure.

Elaborate on Michael Porter's "diamond" theory.

Protectionism is similar to mercantilism as they both advocated _____.

Deadweight costs are net losses that occur when _____ are imposed.

In the context of tariff barriers,deadweight = total inefficiency - net gain.

In the context of NTBs,VERs are government payments to domestic firms.

Globalizing Business

Understanding Formal Institutions: Politics, laws, and Economics

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters