Question 1

U.S.labor generally

Accepted Answer

A)  opposes U.S. investments abroad 
B)  favors U.S. investments abroad 
C)  is indifferent to U.S. investments abroad 
D)  we cannot say without additional information 
A)  opposes U.S. investments abroad 
B)  favors U.S. investments abroad 
C)  is indifferent to U.S. investments abroad 
D)  we cannot say without additional information

Question 2

The basic reason for the existence of MNC is the:

Accepted Answer

A)  competitive advantage of a global network of production and distribution. 
B)  incentives provided by the investing nation 
C)  incentives provided by the host nation 
D)  imperfections of international capital markets 
A)  competitive advantage of a global network of production and distribution. 
B)  incentives provided by the investing nation 
C)  incentives provided by the host nation 
D)  imperfections of international capital markets

Question 3

Which is not a reason for private foreign direct investments?

Accepted Answer

A)  horizontal and vertical integration 
B)  to maximize profits and diversify risks 
C)  to stimulate development 
D)  to avoid tariffs 
A)  horizontal and vertical integration 
B)  to maximize profits and diversify risks 
C)  to stimulate development 
D)  to avoid tariffs

Question 4

The most prominent form of private international economic organization today is the

Accepted Answer

A)  European Union 
B)  World Trade Organization 
C)  multinational corporation 
D)  individual investor 
A)  European Union 
B)  World Trade Organization 
C)  multinational corporation 
D)  individual investor

Question 5

The largest multinationals produce

Accepted Answer

A)  motor vehicles. 
B)  petroleum. 
C)  financial products. 
D)  electronics. 
A)  motor vehicles. 
B)  petroleum. 
C)  financial products. 
D)  electronics.

Question 6

Direct investments usually involve the transfer of all of the above except:

Accepted Answer

A)  capital 
B)  technology 
C)  management 
D)  bonds 
A)  capital 
B)  technology 
C)  management 
D)  bonds

Question 7

The brain drain refers to the transfer of:

Accepted Answer

A)  technology from developed to developing nations 
B)  skilled labor and professionals from developed to developing nations 
C)  unskilled labor from developing to developed nations 
D)  skilled labor and professionals from less advanced to more advanced nations 
A)  technology from developed to developing nations 
B)  skilled labor and professionals from developed to developing nations 
C)  unskilled labor from developing to developed nations 
D)  skilled labor and professionals from less advanced to more advanced nations

Question 8

Owners of capital in developing countries generally

Accepted Answer

A)  oppose an inflow of foreign direct investments from abroad 
B)  favor an inflow of foreign direct investments from abroad 
C)  are indifferent to foreign direct investments from abroad 
D)  we cannot say without additional information 
A)  oppose an inflow of foreign direct investments from abroad 
B)  favor an inflow of foreign direct investments from abroad 
C)  are indifferent to foreign direct investments from abroad 
D)  we cannot say without additional information

Question 9

Which of the following areas accounts for the largest amount of U.S.foreign direct investment?

Accepted Answer

A)  Asia and the Pacific 
B)  Europe 
C)  Latin America 
D)  Canada 
A)  Asia and the Pacific 
B)  Europe 
C)  Latin America 
D)  Canada

Question 10

Transfer pricing refers to:

Accepted Answer

A)  risk diversification 
B)  the pricing of the technology transferred 
C)  the artificial overpricing of components shipped to an affiliate in a higher tax nation 
D)  portfolio theory 
A)  risk diversification 
B)  the pricing of the technology transferred 
C)  the artificial overpricing of components shipped to an affiliate in a higher tax nation 
D)  portfolio theory

U.S.labor generally

The basic reason for the existence of MNC is the:

Which is not a reason for private foreign direct investments?

The most prominent form of private international economic organization today is the

The largest multinationals produce

Direct investments usually involve the transfer of all of the above except:

The brain drain refers to the transfer of:

Owners of capital in developing countries generally

Which of the following areas accounts for the largest amount of U.S.foreign direct investment?

Transfer pricing refers to:

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past, present, and Future Answers to Selected Problems on Web

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Exam 12: International Resource Movements and Multinational Corporations

U.S.labor generally

The basic reason for the existence of MNC is the:

Which is not a reason for private foreign direct investments?

The most prominent form of private international economic organization today is the

The largest multinationals produce

Direct investments usually involve the transfer of all of the above except:

The brain drain refers to the transfer of:

Owners of capital in developing countries generally

Which of the following areas accounts for the largest amount of U.S.foreign direct investment?

Transfer pricing refers to:

Introduction

The Law of Comparative Advantage

The Standard Theory of International Trade

Demand and Supply, offer Curves, and the Terms of Trade

Factor Endowments and the Heckscherohlin Theory

Economies of Scale, imperfect Competition, and International Trade

Economic Growth and International Trade

Trade Restrictions: Tariffs

Nontariff Trade Barriers and the New Protectionism

Economic Integration: Customs Unions and Free Trade Areas

International Trade and Economic Development

Balance of Payments

Foreign Exchange Markets and Exchange Rates

Exchange Rate Determination

The Price Adjustment Mechanism With Flexible and Fixed Exchange Rates

The Income Adjustment Mechanism and Synthesis of Automatic Adjustments

Open Economy Macroeconomics: Adjustment Policies

Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply

Flexible Versus Fixed Exchange Rates, the European Monetary System, and Macroeconomic Policy Coordination

The International Monetary System: Past, present, and Future Answers to Selected Problems on Web

Filters