Question 1

Which of the following statements is NOT true?

Accepted Answer

A)  Trade in services makes up about 20 percent of total world trade. 
B)  Trade in services tends to be more important for emerging markets. 
C)  The United States is a top exporter of services in the world. 
D)  Trade in services is growing for many nations. 
A)  Trade in services makes up about 20 percent of total world trade. 
B)  Trade in services tends to be more important for emerging markets. 
C)  The United States is a top exporter of services in the world. 
D)  Trade in services is growing for many nations.

Question 2

Colonies were important to mercantilist nations for all the following reasons EXCEPT ________.

Accepted Answer

A)  to serve as sources of inexpensive raw materials 
B)  to serve as markets for higher-priced finished goods 
C)  to serve as a source of profits for mercantilist powers 
D)  to serve as a source of military protection 
A)  to serve as sources of inexpensive raw materials 
B)  to serve as markets for higher-priced finished goods 
C)  to serve as a source of profits for mercantilist powers 
D)  to serve as a source of military protection

Question 3

Trade dependency, once a blessing for Mexico, is now causing economic disruption as some companies shift jobs out of the country to places such as China.

Accepted Answer

A) True 
 B)False

Question 4

When doing business in the Pacific Rim, ________.

Accepted Answer

A)  carry business cards printed only in the home country language 
B)  be persistent and aggressive; Asians often take a while before they agree to a meeting 
C)  don't accept invitations to dine at someone's house; go for a neutral location 
D)  go easy with the legalese 
A)  carry business cards printed only in the home country language 
B)  be persistent and aggressive; Asians often take a while before they agree to a meeting 
C)  don't accept invitations to dine at someone's house; go for a neutral location 
D)  go easy with the legalese

Question 5

International trade occurs between different states, regions, or cities within a country.

Accepted Answer

A) True 
 B)False

Question 6

Nearly ________ percent of Western Europe's exports are destined for other nations in Western Europe.

Accepted Answer

A)  20 
B)  50 
C)  74 
D)  85 
A)  20 
B)  50 
C)  74 
D)  85

Question 7

In the new product stage, demand in the innovating country is supplied with imports from production in developing nations.

Accepted Answer

A) True 
 B)False

Question 8

Scenario: Conquering International Fulfillment
Jack Damon, a Boston-based entrepreneur, is determined to not make the same mistakes that hindered his former employer. Jack knows that to expand his international sales he must make some changes to how his orders are filled.
-Although Jack has always handled returns on a case-by-case basis, he should ________.

Accepted Answer

A)  continue with the current system that allows him to consider each situation carefully 
B)  accept returns but credit customer accounts slowly to discourage future returns 
C)  establish a clear-cut system for customer returns and credits 
D)  avoid limiting returns in any way and thus encourage repeat business 
A)  continue with the current system that allows him to consider each situation carefully 
B)  accept returns but credit customer accounts slowly to discourage future returns 
C)  establish a clear-cut system for customer returns and credits 
D)  avoid limiting returns in any way and thus encourage repeat business

Question 9

National competitive advantage theory considers a nation's resources (such as a large labor force, natural resources, and climate) to be advanced factors in a nation's competitive advantage.

Accepted Answer

A) True 
 B)False

Question 10

Explain what is meant by neo-mercantilism.

Accepted Answer

Neo-mercantilism is an economic and poli

Question 11

A trade deficit is the condition that results when the value of a nation's exports is greater than the value of its imports.

Accepted Answer

A) True 
 B)False

Question 12

Most of world merchandise trade consists of trade in manufactured goods.

Accepted Answer

A) True 
 B)False

Question 13

Another term for neo-mercantilism is ________.

Accepted Answer

economic n

Question 14

Customs data reflects rather well the general trade patterns among nations.

Accepted Answer

A) True 
 B)False

Question 15

Scenario: Foodland and Drinkland
Two countries, Foodland and Drinkland, produce food and drinks. In Foodland, one resource unit produces 20 tons of food and one resource unit produces 10 tons of drinks. In Drinkland, one resource unit produces 12 tons of food and one resource unit produces 24 tons of drinks.
Food Drinks
Foodland 20 10
Drinkland 12 24
-This scenario provides an example of ________.

Accepted Answer

A)  mercantilism 
B)  comparative advantage 
C)  a zero-sum game 
D)  absolute advantage 
A)  mercantilism 
B)  comparative advantage 
C)  a zero-sum game 
D)  absolute advantage

Question 16

A country has a ________ when it is unable to produce a good more efficiently than other nations, but produces the good more efficiently than it does any other good.

Accepted Answer

comparativ

Question 17

Companies are leaving Mexico for Asia and Europe because of differences in all of the following EXCEPT ________.

Accepted Answer

A)  education 
B)  climate 
C)  red tape 
D)  taxes 
A)  education 
B)  climate 
C)  red tape 
D)  taxes

Question 18

Factor proportions theory argues that a country should produce and export goods ________.

Accepted Answer

A)  that require factors of production that are most abundant 
B)  where it is most productive to do so 
C)  where it is most efficient to do so 
D)  that require factors of production that are least abundant 
A)  that require factors of production that are most abundant 
B)  where it is most productive to do so 
C)  where it is most efficient to do so 
D)  that require factors of production that are least abundant

Question 19

The ________ theory states that countries produce and export goods that require resources that are abundant, and import goods that require resources in short supply.

Accepted Answer

A)  new trade 
B)  absolute advantage 
C)  international product life cycle 
D)  factor proportions 
A)  new trade 
B)  absolute advantage 
C)  international product life cycle 
D)  factor proportions

Question 20

Explain the theory of comparative advantage using an example, and describe its assumptions and limitations.

Accepted Answer

The answer of Explain the theory of comparative advantage using...

Which of the following statements is NOT true?

Colonies were important to mercantilist nations for all the following reasons EXCEPT ________.

Trade dependency, once a blessing for Mexico, is now causing economic disruption as some companies shift jobs out of the country to places such as China.

When doing business in the Pacific Rim, ________.

International trade occurs between different states, regions, or cities within a country.

Nearly ________ percent of Western Europe's exports are destined for other nations in Western Europe.

In the new product stage, demand in the innovating country is supplied with imports from production in developing nations.

National competitive advantage theory considers a nation's resources (such as a large labor force, natural resources, and climate) to be advanced factors in a nation's competitive advantage.

Explain what is meant by neo-mercantilism.

A trade deficit is the condition that results when the value of a nation's exports is greater than the value of its imports.

Most of world merchandise trade consists of trade in manufactured goods.

Another term for neo-mercantilism is ________.

Customs data reflects rather well the general trade patterns among nations.

A country has a ________ when it is unable to produce a good more efficiently than other nations, but produces the good more efficiently than it does any other good.

Companies are leaving Mexico for Asia and Europe because of differences in all of the following EXCEPT ________.

Factor proportions theory argues that a country should produce and export goods ________.

The ________ theory states that countries produce and export goods that require resources that are abundant, and import goods that require resources in short supply.

Explain the theory of comparative advantage using an example, and describe its assumptions and limitations.

Globalization

Cross-Cultrual Busines

Politics, Law, and Business Ethics

Economic Systems and Development

Business-Government Trade Relations

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Money System

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters

Exam 5: International Trade

Which of the following statements is NOT true?

Colonies were important to mercantilist nations for all the following reasons EXCEPT ________.

Trade dependency, once a blessing for Mexico, is now causing economic disruption as some companies shift jobs out of the country to places such as China.

When doing business in the Pacific Rim, ________.

International trade occurs between different states, regions, or cities within a country.

Nearly ________ percent of Western Europe's exports are destined for other nations in Western Europe.

In the new product stage, demand in the innovating country is supplied with imports from production in developing nations.

National competitive advantage theory considers a nation's resources (such as a large labor force, natural resources, and climate) to be advanced factors in a nation's competitive advantage.

Explain what is meant by neo-mercantilism.

A trade deficit is the condition that results when the value of a nation's exports is greater than the value of its imports.

Most of world merchandise trade consists of trade in manufactured goods.

Another term for neo-mercantilism is ________.

Customs data reflects rather well the general trade patterns among nations.

A country has a ________ when it is unable to produce a good more efficiently than other nations, but produces the good more efficiently than it does any other good.

Companies are leaving Mexico for Asia and Europe because of differences in all of the following EXCEPT ________.

Factor proportions theory argues that a country should produce and export goods ________.

The ________ theory states that countries produce and export goods that require resources that are abundant, and import goods that require resources in short supply.

Explain the theory of comparative advantage using an example, and describe its assumptions and limitations.

Globalization

Cross-Cultrual Busines

Politics, Law, and Business Ethics

Economic Systems and Development

Business-Government Trade Relations

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Money System

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters