Exam 8: Firms in the Global Economy: Export Decisions, Outsourcing, and Multinational Enterprises

When a multinational affiliate replicates elements of a production process in a foreign country it is called ________ foreign direct investment.

An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q. What is total cost equal to when Q = 10?

A monopoly firm engaged in international trade will

A corporation is considered a multinational ________ if ________.

If a firm increases its output in the ________ and unit costs ________, then the firm is experiencing ________ of scale.

A corporation is considered a multinational ________ if ________.

Foreign outsourcing is

Two countries engaged in trade in products with no scale economies, produced under conditions of perfect competition, are likely to be engaged in

If an industry is imperfectly competitive, and markets are segmented then

If the market for products produced by firms in a monopolistically competitive industry becomes ________, then there will be ________ firms and each firm will produce ________ output and charge a ________ price.

In the model of monopolistic competition, trade costs between countries cause

An imperfectly competitive firm has the following total cost curve: C = 100 + 4Q. What is average fixed cost equal to when Q = 10?

In an industry where firms experience internal scale economies, the long-run cost of production will depend on

A monopolistic firm

Intra-industry trade is most common in the trade patterns of

When a multinational affiliate replicates production in a foreign country it is called ________ foreign direct investment.

What is the nature of the proximity-concentration tradeoff that firms have to deal with then making decisions regarding foreign direct investment?

-Refer to above figure. Given the opportunity to sell at world prices, the marginal (opportunity) cost of selling a ton domestically is what?

In the model of monopolistic competition, trade costs between countries cause

Trade without serious income distribution effects is most likely to happen