Exam 1: Introduction

In the HO model,countries with relatively more capital than other countries will concentrate on ________________________ production.

What recent developments have made the classical theory of comparative advantage less relevant?

In David Ricardo's theory of trade,_______________ is assumed to be the primary input for production.

The primary goal of MNCs is to:

Compared to _________________,______________________ can be easily transmitted to foreign locations for use there.

How does the "agency problem" affect the governance of MNCs?

Macroeconomic conditions that can give rise to affect a firm's cash flow include:

Because setting up a foreign operation can involve significant costs,MNCs must:

Internalization advantages for MNCs refers to:

When a country exports and imports the same product to satisfy consumer demands for product variety,that country is engaged in:

The risk that a foreign country where an MNC does business might take action that would adversely affect the MNC is called:

Countries generally believe that international trade has what affect on them?

The changes in a firm's cash flow that result from changes in macroeconomic conditions are called:

How did World War II affect the progress of globalization?

What is an effective way for MNCs to address the risk that a country where it is going to do business has different rules and regulations than other countries?

The effect of the risks faced by MNCs is to:

The movement of goods across national borders is the definition of ________________________.

Global corporations are often referred to as:

Key trade issues that remain unresolved include agricultural subsidies in _____________ and market access for _______________________________.

Risks that are unique to international business include: