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

Two countries engaged in trade in products with scale economies, produced under conditions of monopolistic competition, are likely to be engaged in

A monopoly firm will maximize profits by producing where

In the model of monopolistic competition, trade costs between countries will cause domestic and foreign markets to have ________ prices, ________ quantities sold, and ________ profit levels.

When a country both exports and imports a type of commodity, the country is engaged in

An industry is characterized by scale economies, and exists in two countries. Should these two countries engage in trade such that the combined market is supplied by one country's industry, then

A firm in long-run equilibrium under monopolistic competition will earn

Imperfectly competitive firms have a demand curve that ________ and a marginal revenue curve that ________ and is ________ the demand curve.

Modeling trade in imperfectly competitive industries is problematic because

The simultaneous export and import of widgets by the United States is an example of

Under oligopoly, firms' pricing policies are ________ and, under monopolistic competition, they are ________.

-Refer to above figure. The monopolist can export as much as it likes of its steel at the world price of $5/ton. How much steel will the monopolist sell, and at what price?

Complaints are often made to the International Trade Commission concerning foreign "dumping" practices. These complaints typically claim that

In the model of monopolistic competition, an increase in industry output will ________ producers of ________ higher-priced goods and ________ producers of lower-priced goods.

A product is produced in a monopolistically competitive industry with scale economies. If this industry exists in two countries, and these two countries engage in trade with each other, then we would expect

If a firm that uses a production process that yields economies of scale charges a price equal to ________, then profit will be ________.

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

Under the model of monopolistic competition, a(an) ________ in the number of firms in the industry will cause ________ to ________.

If there are a large number of firms in a monopolistically competitive industry,

Intra-industry trade will tend to dominate trade flows when which of the following exists?

Firms that produce ________ products must be ________ competitive.