Question 1

Because there are gains to be had by both countries party to an exchange, the theory of absolute advantage states that international trade is a zero-sum game.

Accepted Answer

A) True 
 B)False

Question 2

When a country has a weak currency relative to other nations, imports are ________ relative to domestic products.

Accepted Answer

A)  more expensive 
B)  equal in price 
C)  more attractive 
D)  less expensive 
A)  more expensive 
B)  equal in price 
C)  more attractive 
D)  less expensive

Question 3

________ is the practice of countries trying to maintain a trade surplus and expand their national treasures at the expense of other countries.

Accepted Answer

The answer of ________ is the practice of countries trying...

Question 4

Describe international trade and identify its potential benefits.

Accepted Answer

International trade refers to the exchan

Question 5

National competitive advantage theory argues that companies that can benefit from the product or process technologies of an internationally competitive industry begin to form clusters of related economic activities in the same geographic region.

Accepted Answer

A) True 
 B)False

Question 6

Factor proportions theory was developed by ________.

Accepted Answer

A)  Smith and Ricardo 
B)  Ricardo and Ohlin 
C)  Hecksher and Ohlin 
D)  Hecksher and Smith 
A)  Smith and Ricardo 
B)  Ricardo and Ohlin 
C)  Hecksher and Ohlin 
D)  Hecksher and Smith

Question 7

The international product life cycle theory was put forth for which type of goods?

Accepted Answer

A)  Service goods 
B)  Knowledge-based goods 
C)  Manufactured goods 
D)  Natural resources 
A)  Service goods 
B)  Knowledge-based goods 
C)  Manufactured goods 
D)  Natural resources

Question 8

Which of the following statements about mercantilism are true?

Accepted Answer

A)  Trade deficits were to be avoided at all costs. 
B)  Accumulation of wealth depended on increasing a nation's trade surplus, not necessarily expanding its total value or volume of trade. 
C)  Acquire less-developed colonies to serve as a source of inexpensive raw material and as markets for higher-priced finished goods. 
D)  All of the above. 
A)  Trade deficits were to be avoided at all costs. 
B)  Accumulation of wealth depended on increasing a nation's trade surplus, not necessarily expanding its total value or volume of trade. 
C)  Acquire less-developed colonies to serve as a source of inexpensive raw material and as markets for higher-priced finished goods. 
D)  All of the above.

Question 9

Discuss the dangers of trade dependency.

Accepted Answer

The answer of Discuss the dangers of trade dependency....

Question 10

An estimated 12 million U.S. jobs depend on exports, and these jobs pay more than jobs not related to international trade.

Accepted Answer

A) True 
 B)False

Question 11

When countries try to maintain a trade surplus and expand their national treasuries at the expense of other nations, they are accused of practicing neo-mercantilism.

Accepted Answer

A) True 
 B)False

Question 12

According to the theory of absolute advantage, because there are gains to be had by both countries involved in an exchange, international trade is a ________.

Accepted Answer

The answer of According to the theory of absolute advantage,...

Question 13

The value of North American exports to Asia is ________.

Accepted Answer

A)  more than half the value of Asian exports to North America 
B)  roughly equal to China's exports to the U.S. 
C)  less than half the value of Asian exports to North America 
D)  is in balance with Asia's exports to the U.S. 
A)  more than half the value of Asian exports to North America 
B)  roughly equal to China's exports to the U.S. 
C)  less than half the value of Asian exports to North America 
D)  is in balance with Asia's exports to the U.S.

Question 14

According to ________, measures of a nation's well-being are irrelevant.

Accepted Answer

A)  mercantilism 
B)  absolute advantage theory 
C)  factor proportions theory 
D)  new trade theory 
A)  mercantilism 
B)  absolute advantage theory 
C)  factor proportions theory 
D)  new trade theory

Question 15

Canada is the world's largest exporter of merchandise.

Accepted Answer

A) True 
 B)False

Question 16

Trade in ________ makes up roughly 20 percent of total world trade.

Accepted Answer

The answer of Trade in ________ makes up roughly 20...

Question 17

Scenario: Chuck Praeger, Global Entrepreneur
Chuck Praeger has made a name for himself by being able to sell golf equipment to anyone, anywhere, anytime. Chuck would like to expand his business into Pacific Rim countries and has begun making inquiries into potential distributors.
-Chuck is a hands-on individual who believes his business has grown because of his personal involvement every step of the way. What advice do you offer Chuck as he continues to expand his business in new Asian markets?

Accepted Answer

A)  Contact distributors directly to avoid misunderstandings that can arise when using third-party contacts. 
B)  Always stick to corporate settings when doing business to avoid misunderstandings that can arise in less formal environments. 
C)  Protect his interests by insisting on detailed contacts from the start. 
D)  Use proper intermediaries as required in Pacific Rim nations. 
A)  Contact distributors directly to avoid misunderstandings that can arise when using third-party contacts. 
B)  Always stick to corporate settings when doing business to avoid misunderstandings that can arise in less formal environments. 
C)  Protect his interests by insisting on detailed contacts from the start. 
D)  Use proper intermediaries as required in Pacific Rim nations.

Question 18

The trade theory that nations should accumulate financial wealth, usually in the form of gold, by encouraging imports and discouraging exports is called mercantilism.

Accepted Answer

A) True 
 B)False

Question 19

Explain the new trade theory including what is meant by the term "first mover advantage."

Accepted Answer

The new trade theory is an economic conc

Because there are gains to be had by both countries party to an exchange, the theory of absolute advantage states that international trade is a zero-sum game.

When a country has a weak currency relative to other nations, imports are ________ relative to domestic products.

________ is the practice of countries trying to maintain a trade surplus and expand their national treasures at the expense of other countries.

Describe international trade and identify its potential benefits.

National competitive advantage theory argues that companies that can benefit from the product or process technologies of an internationally competitive industry begin to form clusters of related economic activities in the same geographic region.

Factor proportions theory was developed by ________.

The international product life cycle theory was put forth for which type of goods?

Which of the following statements about mercantilism are true?

Discuss the dangers of trade dependency.

An estimated 12 million U.S. jobs depend on exports, and these jobs pay more than jobs not related to international trade.

When countries try to maintain a trade surplus and expand their national treasuries at the expense of other nations, they are accused of practicing neo-mercantilism.

According to the theory of absolute advantage, because there are gains to be had by both countries involved in an exchange, international trade is a ________.

The value of North American exports to Asia is ________.

According to ________, measures of a nation's well-being are irrelevant.

Canada is the world's largest exporter of merchandise.

Trade in ________ makes up roughly 20 percent of total world trade.

The trade theory that nations should accumulate financial wealth, usually in the form of gold, by encouraging imports and discouraging exports is called mercantilism.

Explain the new trade theory including what is meant by the term "first mover advantage."

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

Because there are gains to be had by both countries party to an exchange, the theory of absolute advantage states that international trade is a zero-sum game.

When a country has a weak currency relative to other nations, imports are ________ relative to domestic products.

________ is the practice of countries trying to maintain a trade surplus and expand their national treasures at the expense of other countries.

Describe international trade and identify its potential benefits.

National competitive advantage theory argues that companies that can benefit from the product or process technologies of an internationally competitive industry begin to form clusters of related economic activities in the same geographic region.

Factor proportions theory was developed by ________.

The international product life cycle theory was put forth for which type of goods?

Which of the following statements about mercantilism are true?

Discuss the dangers of trade dependency.

An estimated 12 million U.S. jobs depend on exports, and these jobs pay more than jobs not related to international trade.

When countries try to maintain a trade surplus and expand their national treasuries at the expense of other nations, they are accused of practicing neo-mercantilism.

According to the theory of absolute advantage, because there are gains to be had by both countries involved in an exchange, international trade is a ________.

The value of North American exports to Asia is ________.

According to ________, measures of a nation's well-being are irrelevant.

Canada is the world's largest exporter of merchandise.

Trade in ________ makes up roughly 20 percent of total world trade.

The trade theory that nations should accumulate financial wealth, usually in the form of gold, by encouraging imports and discouraging exports is called mercantilism.

Explain the new trade theory including what is meant by the term "first mover advantage."

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