Exam 1: Introduction

The International Product Life Cycle Theory explains why there are no televisions manufactured in Great Britain and the United States,although that technology was invented in those countries.

The North American Free Trade Association (NAFTA)includes only the United States and Canada.

An international logistician cannot possibly learn all of the cultural subtleties of a particular country; however,in order to avoid frustrations and difficulties,it would be advisable that s/he study

Information on foreign countries,including their economic environment,their political environment,and their geography,can easily be found in several publications.Which is NOT one of the organizations that publishes background information on countries?

The European Union is an economic community that comprises how many countries?

David Ricardo's Theory of Comparative Advantage explains why countries that enjoy an absolute advantage in making certain goods can still prefer to purchase these products from other countries.

The "Wal-Mart effect" pushes manufacturers to sell products at ever-lower prices,often obtained by manufacturing abroad.

The Heckscher-Ohlin Theory holds that countries that have an abundance of certain resources enjoy an absolute or comparative advantage over other countries.Which of the following is NOT one of the factors that Heckscher and Ohlin considers scarce?

International trade is still mostly concentrated among the developed countries of the Northern Hemisphere.Which country is the largest exporter of the world?

On occasion,a firm will respond to a competitor's move by retaliating.For example,Linde Gas (an American firm producing industrial gasses)entered the French market when Air Liquide (a French company in the same industry)decided to enter the U.S.market.Such a move is considered a

Argentina can produce 1 ton of meat (beef)using 0.1 years of labor.It can also produce 1 automobile using 2 years of labor.In order to produce 1 ton of beef,the United States uses 0.2 years of labor.It can produce an automobile using 1.5 years of labor.Argentina has

The Theory of Absolute Advantage was first coined by ____________________.

A country often enjoys a comparative advantage because of the abundance of a particular production factor (land,labor,capital,or entrepreneurship)within its borders.

Many of the developing countries of the world experience traffic gridlock.

The Treaty of Rome in 1957 was the first step in the creation of the European Union.

A competitor offering a new product in a mature market can entice a company to start importing its own low-cost alternative.