Question 1

As an international business manager,how can you benefit from an understanding of international trade theories?

Accepted Answer

Trade policies have an impact on busines

Question 2

The international mobility of labor includes workers,students,tourists,and retirees who travel to another country.

Accepted Answer

A) True 
 B)False

Question 3

The growth of small-scale production technology will most likely enable small countries to produce products efficiently for their own consumption.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is most likely FALSE?

Accepted Answer

A)  Developing countries trade mainly with developed countries. 
B)  Developed countries trade mainly with other developed countries. 
C)  Cultural similarity among countries enhances their trade with each other. 
D)  The greater the geographic distance between countries, the greater the trade. 
A)  Developing countries trade mainly with developed countries. 
B)  Developed countries trade mainly with other developed countries. 
C)  Cultural similarity among countries enhances their trade with each other. 
D)  The greater the geographic distance between countries, the greater the trade.

Question 5

The finite nature of natural resources should work as a disadvantage for the export prices of developing countries.

Accepted Answer

A) True 
 B)False

Question 6

Analysts conclude that the finite supply of natural resources will most likely ________.

Accepted Answer

A)  cause a higher proportion of world trade to occur among developed countries 
B)  cause a higher proportion of world trade to occur among developing countries 
C)  serve as an advantage for developing countries in their sales to developed countries 
D)  create a greater portion of world trade in the form of services 
A)  cause a higher proportion of world trade to occur among developed countries 
B)  cause a higher proportion of world trade to occur among developing countries 
C)  serve as an advantage for developing countries in their sales to developed countries 
D)  create a greater portion of world trade in the form of services

Question 7

All of the following are reasons that foreign investment may stimulate exports from the home (donor)country EXCEPT which of the following?

Accepted Answer

A)  The investor often sends home-country components to its facilities abroad. 
B)  The investor often sends home-country equipment to its facilities abroad. 
C)  Home-country aid usually goes where the investments are made. 
D)  The foreign facility is adept at selling the investors' home country products. 
A)  The investor often sends home-country components to its facilities abroad. 
B)  The investor often sends home-country equipment to its facilities abroad. 
C)  Home-country aid usually goes where the investments are made. 
D)  The foreign facility is adept at selling the investors' home country products.

Question 8

The top 10 exporting countries are dominated by developing countries.

Accepted Answer

A) True 
 B)False

Question 9

A governmental strategic trade (industrial)policy is one that ________.

Accepted Answer

A)  lessens dependence on foreign military goods 
B)  seeks reciprocal free trade agreements between developed and developing countries 
C)  targets the resources needed to support industries that seem to fit best with the country's advantages 
D)  limits imports to encourage domestic production of what would otherwise be imported 
A)  lessens dependence on foreign military goods 
B)  seeks reciprocal free trade agreements between developed and developing countries 
C)  targets the resources needed to support industries that seem to fit best with the country's advantages 
D)  limits imports to encourage domestic production of what would otherwise be imported

Question 10

According to the product life cycle theory,production and sales are primarily domestic in the introductory stage because ________.

Accepted Answer

A)  businesses need quick market feedback 
B)  tariff reductions remain under negotiation 
C)  international transport costs are too high 
D)  international patents have not been approved 
A)  businesses need quick market feedback 
B)  tariff reductions remain under negotiation 
C)  international transport costs are too high 
D)  international patents have not been approved

Question 11

According to the PLC theory of trade,most new products are produced in countries where wage rates are low.

Accepted Answer

A) True 
 B)False

Question 12

Contrary to the product life cycle theory,there has been an increased tendency for companies to ________.

Accepted Answer

A)  sell products only in their home markets throughout the cycle 
B)  produce and sell products in countries where counterfeiting is low 
C)  introduce new products simultaneously in domestic and foreign markets 
D)  sell new products in developing countries before expanding into developed countries 
A)  sell products only in their home markets throughout the cycle 
B)  produce and sell products in countries where counterfeiting is low 
C)  introduce new products simultaneously in domestic and foreign markets 
D)  sell new products in developing countries before expanding into developed countries

Question 13

All of the following are examples of international labor mobility EXCEPT ________.

Accepted Answer

A)  a manager assigned by an MNE to work short-term abroad 
B)  a refugee who takes up employment in another country 
C)  a college student on a study abroad program 
D)  an illegal immigrant working in another country 
A)  a manager assigned by an MNE to work short-term abroad 
B)  a refugee who takes up employment in another country 
C)  a college student on a study abroad program 
D)  an illegal immigrant working in another country

Question 14

Nontradable goods are best defined as ________.

Accepted Answer

A)  products and services for which exporting costs are excessive 
B)  factors of production that exceed safety regulations 
C)  goods used for national defense 
D)  products that comprise a portion of the inputs for finished products 
A)  products and services for which exporting costs are excessive 
B)  factors of production that exceed safety regulations 
C)  goods used for national defense 
D)  products that comprise a portion of the inputs for finished products

Question 15

In a short essay,discuss the theory of mercantilism,and discuss favorable and unfavorable balances of trade as they apply to international business.

Accepted Answer

Mercantilism holds that a country's weal

Question 16

Which of the hypothetical new products,if successful,would most likely diffuse its production and sales according to the product life cycle theory?

Accepted Answer

A)  a Ferrari sports car selling for $200,000 to a niche, upper-end market 
B)  a Sony television that receives global transmissions without a satellite dish or cable connection, introduced at a high price but targeted eventually for sale to a mass market 
C)  a new Diet Coca-Cola soft drink flavored with cranberries 
D)  a Kyocera plastic chip carrier, which is expected to be quickly obsolete because of innovations 
A)  a Ferrari sports car selling for $200,000 to a niche, upper-end market 
B)  a Sony television that receives global transmissions without a satellite dish or cable connection, introduced at a high price but targeted eventually for sale to a mass market 
C)  a new Diet Coca-Cola soft drink flavored with cranberries 
D)  a Kyocera plastic chip carrier, which is expected to be quickly obsolete because of innovations

Question 17

The trade theory that says a country should export more than it imports is known as ________.

Accepted Answer

A)  mercantilism 
B)  absolute advantage 
C)  comparative advantage 
D)  import substitution 
A)  mercantilism 
B)  absolute advantage 
C)  comparative advantage 
D)  import substitution

Question 18

All of the following factors most likely led to Costa Rica's attraction of high-tech FDI EXCEPT the country's ________.

Accepted Answer

A)  demand for high-tech products 
B)  literacy rate 
C)  quality of life 
D)  political stability 
A)  demand for high-tech products 
B)  literacy rate 
C)  quality of life 
D)  political stability

Question 19

The diamond of national advantage would be best used to answer which of the following questions?

Accepted Answer

A)  How do developed countries prevent the trade of blood diamonds? 
B)  How can developing countries create a significant trade surplus? 
C)  Why do specialized competitive advantages differ among countries? 
D)  Why do most innovative products originate in developed countries? 
A)  How do developed countries prevent the trade of blood diamonds? 
B)  How can developing countries create a significant trade surplus? 
C)  Why do specialized competitive advantages differ among countries? 
D)  Why do most innovative products originate in developed countries?

Question 20

Countries enact trade policies based on trade theories,which,in turn,affect companies' optimum production locations.

Accepted Answer

A) True 
 B)False

As an international business manager,how can you benefit from an understanding of international trade theories?

The international mobility of labor includes workers,students,tourists,and retirees who travel to another country.

The growth of small-scale production technology will most likely enable small countries to produce products efficiently for their own consumption.

Which of the following statements is most likely FALSE?

The finite nature of natural resources should work as a disadvantage for the export prices of developing countries.

Analysts conclude that the finite supply of natural resources will most likely ________.

All of the following are reasons that foreign investment may stimulate exports from the home (donor)country EXCEPT which of the following?

The top 10 exporting countries are dominated by developing countries.

A governmental strategic trade (industrial)policy is one that ________.

According to the product life cycle theory,production and sales are primarily domestic in the introductory stage because ________.

According to the PLC theory of trade,most new products are produced in countries where wage rates are low.

Contrary to the product life cycle theory,there has been an increased tendency for companies to ________.

All of the following are examples of international labor mobility EXCEPT ________.

Nontradable goods are best defined as ________.

In a short essay,discuss the theory of mercantilism,and discuss favorable and unfavorable balances of trade as they apply to international business.

Which of the hypothetical new products,if successful,would most likely diffuse its production and sales according to the product life cycle theory?

The trade theory that says a country should export more than it imports is known as ________.

All of the following factors most likely led to Costa Rica's attraction of high-tech FDI EXCEPT the country's ________.

The diamond of national advantage would be best used to answer which of the following questions?

Countries enact trade policies based on trade theories,which,in turn,affect companies' optimum production locations.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Exam 5: International Trade and Factor-Mobility Theory

As an international business manager,how can you benefit from an understanding of international trade theories?

The international mobility of labor includes workers,students,tourists,and retirees who travel to another country.

The growth of small-scale production technology will most likely enable small countries to produce products efficiently for their own consumption.

Which of the following statements is most likely FALSE?

The finite nature of natural resources should work as a disadvantage for the export prices of developing countries.

Analysts conclude that the finite supply of natural resources will most likely ________.

All of the following are reasons that foreign investment may stimulate exports from the home (donor)country EXCEPT which of the following?

The top 10 exporting countries are dominated by developing countries.

A governmental strategic trade (industrial)policy is one that ________.

According to the product life cycle theory,production and sales are primarily domestic in the introductory stage because ________.

According to the PLC theory of trade,most new products are produced in countries where wage rates are low.

Contrary to the product life cycle theory,there has been an increased tendency for companies to ________.

All of the following are examples of international labor mobility EXCEPT ________.

Nontradable goods are best defined as ________.

In a short essay,discuss the theory of mercantilism,and discuss favorable and unfavorable balances of trade as they apply to international business.

Which of the hypothetical new products,if successful,would most likely diffuse its production and sales according to the product life cycle theory?

The trade theory that says a country should export more than it imports is known as ________.

All of the following factors most likely led to Costa Rica's attraction of high-tech FDI EXCEPT the country's ________.

The diamond of national advantage would be best used to answer which of the following questions?

Countries enact trade policies based on trade theories,which,in turn,affect companies' optimum production locations.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters