Question 1

Which element of national competitive advantage theory divides resources into two groups: basic and advanced?

Accepted Answer

A) demand conditions 
B) factor conditions 
C) related and supporting industries 
D) firm,strategy,structure,and rivalry 
A) demand conditions 
B) factor conditions 
C) related and supporting industries 
D) firm,strategy,structure,and rivalry

Question 2

Explain how both the international product life cycle theory and the new trade theory ultimately result in lower priced goods.Include a definition of "first mover advantage" in your answer.

Accepted Answer

The international product life cycle the

Question 3

Which of the following statements is true regarding the assumptions of the absolute and comparative advantage theories?

Accepted Answer

A) The theories assume that there are many number of countries engaged in the production and consumption of just two goods. 
B) The theories assume that there are additional costs for transporting traded goods from one country to another. 
C) The theories assume labor to be the only resource used in the production process. 
D) The theories assume that specialization in the production of one particular good results in gains in efficiency. 
A) The theories assume that there are many number of countries engaged in the production and consumption of just two goods. 
B) The theories assume that there are additional costs for transporting traded goods from one country to another. 
C) The theories assume labor to be the only resource used in the production process. 
D) The theories assume that specialization in the production of one particular good results in gains in efficiency.

Question 4

Nations following the theory of ________ believed that the world's wealth was limited and that a nation could increase its share of the pie only at the expense of its neighbors.

Accepted Answer

A) absolute advantage 
B) comparative advantage 
C) mercantilism 
D) factor proportions 
A) absolute advantage 
B) comparative advantage 
C) mercantilism 
D) factor proportions

Question 5

Another term for neomercantilism is ________.

Accepted Answer

A) new trade 
B) free trade 
C) economic nationalism 
D) political nationalism 
A) new trade 
B) free trade 
C) economic nationalism 
D) political nationalism

Question 6

The ________ theory states that countries produce and export goods that require resources available in abundance 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 7

The international product life cycle theory was developed by ________.

Accepted Answer

A) Milton Friedman 
B) Karl Marx 
C) Michael Porter 
D) Raymond Vernon 
A) Milton Friedman 
B) Karl Marx 
C) Michael Porter 
D) Raymond Vernon

Question 8

The importance of trade for a nation can be measured by ________.

Accepted Answer

A) examining the amount of wealth acquired by the national government through restrictive trade policies 
B) the living standards of people involved in only trade activities 
C) the number of acquired territories the nation has that serves as sources of inexpensive raw materials 
D) examining the volume of its trade relative to its total output 
A) examining the amount of wealth acquired by the national government through restrictive trade policies 
B) the living standards of people involved in only trade activities 
C) the number of acquired territories the nation has that serves as sources of inexpensive raw materials 
D) examining the volume of its trade relative to its total output

Question 9

________ refers to the purchase,sale,or exchange of goods and services across national borders.

Accepted Answer

A) Domestic trade 
B) Foreign direct investment 
C) International trade 
D) Mercantilism 
A) Domestic trade 
B) Foreign direct investment 
C) International trade 
D) Mercantilism

Question 10

How does the theory of comparative advantage differ from the factor proportions theory? Include a description of the factor proportions theory in your answer.

Accepted Answer

An English economist named David Ricardo

Question 11

Trade in services tends to be relatively more important for the world's richest countries.

Accepted Answer

A) True 
 B)False

Question 12

Factor proportions theory was developed by ________.

Accepted Answer

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

Question 13

Scenario: Better Mousetrap Inc.
Better Mousetrap Inc.is a manufacturing company that sells pest control products.Recently the company launched an innovative mousetrap with a unique design that has been selling well in the U.S.market.Senior Vice President Marc Wallace,even recommended expanding sales overseas in order to increase company revenues.
-Wallace expects that markets abroad will soon become fully aware of the existence of the product and its benefits.Which of the following life cycle stages will the product be a part of during that period?

Accepted Answer

A) maturing product stage 
B) product decline stage 
C) standardized product stage 
D) new product stage 
A) maturing product stage 
B) product decline stage 
C) standardized product stage 
D) new product stage

Question 14

A product's components are manufactured in a country that can produce them at a very low cost while maintaining its quality.These components are then assembled in another country where productivity in assembly is high.This process resembles the theory of ________.

Accepted Answer

A) comparative advantage 
B) mercantilism 
C) the international product life cycle 
D) factor proportions 
A) comparative advantage 
B) mercantilism 
C) the international product life cycle 
D) factor proportions

Question 15

International trade is the purchase,sale,or exchange of goods and services across national borders.

Accepted Answer

A) True 
 B)False

Question 16

Companies that belong to a nation's internationally competitive industries exist in isolation from supporting industries.

Accepted Answer

A) True 
 B)False

Question 17

Scenario: Conquering International Fulfillment
Jack Damon,a Boston-based entrepreneur,is determined not to make the same mistakes that hindered his former employer's business expansions.Jack knows that to increase his international sales,he must make some changes in how his orders are filled.
-In reviewing his fulfillment process,Jack realizes that different customers opt for different types of shipping based on their preferences.Which of the following would most likely help Jack provide better shipping service to his customers?

Accepted Answer

A) introduce overnight delivery but at a very high cost 
B) reduce costs by implementing a cheaper but slower delivery method 
C) implement a universal delivery method to capitalize on efficiency gains 
D) offer customers a choice of delivery methods with different speeds and costs 
A) introduce overnight delivery but at a very high cost 
B) reduce costs by implementing a cheaper but slower delivery method 
C) implement a universal delivery method to capitalize on efficiency gains 
D) offer customers a choice of delivery methods with different speeds and costs

Question 18

The international product life cycle theory was put forth for ________.

Accepted Answer

A) service goods 
B) abundant resources 
C) manufactured goods 
D) natural resources 
A) service goods 
B) abundant resources 
C) manufactured goods 
D) natural resources

Question 19

Describe the potential benefits of international trade.Why would a nation trading with a neomercantilist country be at a disadvantage?

Accepted Answer

The purchase,sale,or exchange of goods a

Question 20

The ________ theory states that a country's export eventually becomes its import.

Accepted Answer

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

Which element of national competitive advantage theory divides resources into two groups: basic and advanced?

Explain how both the international product life cycle theory and the new trade theory ultimately result in lower priced goods.Include a definition of "first mover advantage" in your answer.

Which of the following statements is true regarding the assumptions of the absolute and comparative advantage theories?

Nations following the theory of ________ believed that the world's wealth was limited and that a nation could increase its share of the pie only at the expense of its neighbors.

Another term for neomercantilism is ________.

The ________ theory states that countries produce and export goods that require resources available in abundance and import goods that require resources in short supply.

The international product life cycle theory was developed by ________.

The importance of trade for a nation can be measured by ________.

________ refers to the purchase,sale,or exchange of goods and services across national borders.

How does the theory of comparative advantage differ from the factor proportions theory? Include a description of the factor proportions theory in your answer.

Trade in services tends to be relatively more important for the world's richest countries.

Factor proportions theory was developed by ________.

A product's components are manufactured in a country that can produce them at a very low cost while maintaining its quality.These components are then assembled in another country where productivity in assembly is high.This process resembles the theory of ________.

International trade is the purchase,sale,or exchange of goods and services across national borders.

Companies that belong to a nation's internationally competitive industries exist in isolation from supporting industries.

The international product life cycle theory was put forth for ________.

Describe the potential benefits of international trade.Why would a nation trading with a neomercantilist country be at a disadvantage?

The ________ theory states that a country's export eventually becomes its import.

Globalization

Cross-Cultural Business

Politics, Law, and Business Ethics

Economics and Emerging Markets

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 element of national competitive advantage theory divides resources into two groups: basic and advanced?

Explain how both the international product life cycle theory and the new trade theory ultimately result in lower priced goods.Include a definition of "first mover advantage" in your answer.

Which of the following statements is true regarding the assumptions of the absolute and comparative advantage theories?

Nations following the theory of ________ believed that the world's wealth was limited and that a nation could increase its share of the pie only at the expense of its neighbors.

Another term for neomercantilism is ________.

The ________ theory states that countries produce and export goods that require resources available in abundance and import goods that require resources in short supply.

The international product life cycle theory was developed by ________.

The importance of trade for a nation can be measured by ________.

________ refers to the purchase,sale,or exchange of goods and services across national borders.

How does the theory of comparative advantage differ from the factor proportions theory? Include a description of the factor proportions theory in your answer.

Trade in services tends to be relatively more important for the world's richest countries.

Factor proportions theory was developed by ________.

A product's components are manufactured in a country that can produce them at a very low cost while maintaining its quality.These components are then assembled in another country where productivity in assembly is high.This process resembles the theory of ________.

International trade is the purchase,sale,or exchange of goods and services across national borders.

Companies that belong to a nation's internationally competitive industries exist in isolation from supporting industries.

The international product life cycle theory was put forth for ________.

Describe the potential benefits of international trade.Why would a nation trading with a neomercantilist country be at a disadvantage?

The ________ theory states that a country's export eventually becomes its import.

Globalization

Cross-Cultural Business

Politics, Law, and Business Ethics

Economics and Emerging Markets

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