Exam 9: International Factor Movements and Multinational Enterprises

Critics of U.S.trade and immigration policy maintain that

Due to transfer-pricing problems,multinational corporations must shift profits away from countries with low corporate tax rates to high tax-rate countries,thus absorbing a larger tax bite.

American labor unions accuse U.S.multinational firms of all of the following except: that such firms

In recent years,most foreign direct investment in the United States has come from:

Multinational enterprises:

An effort to diversify into nonrelated markets is most likely to be undertaken when firms undergo:

Most multinational corporations have a low ratio of foreign sales to total sales,usually 5 percent or less.

Figure 9.1.International Joint Venture -Consider Figure 9.1.At the equilibrium price,domestic households attain ____ of consumer surplus:

The effect of workers migrating from low-wage Mexico to high-wage United States is to redistribute income from capital to labor in the United States and from labor to capital in Mexico.

International trade in goods and services and flows of productive factors are substitutes for each other.

"Guest worker" programs generally result in temporary migration of workers from:

There is virtually universal agreement among economists that foreign direct investment in the United States has reduced the economic welfare of the average U.S.citizen.

Which of the following best refers to the outright construction or purchase abroad of productive facilities,such as manufacturing plants,by domestic residents?

During the 1970s,American oil companies acquired nonenergy companies (e.g.,copper,auto components)in response to anticipated decreases in investment opportunities in oil.This type of diversification is referred to as:

If a joint venture among competing firms is able to cut costs by extracting wage concessions from domestic workers,national welfare increases.

Figure 9.1.International Joint Venture -Consider Figure 9.1.Compared to the market equilibrium position achieved by Sony Company and American Company as competitors,Venture Company as a monopoly leads to a deadweight loss of consumer surplus of:

Developing countries have sometimes feared open immigration policies of developed countries on the grounds that highly educated and skilled people may emigrate to the developed countries,thus limiting the growth potential of the developing countries.

As workers migrate from low-wage Mexico to high-wage United States,wages tend to rise in Mexico and fall in the United States.

The migration of workers from Mexico to the United States tends to exert downward pressure on the wages of native U.S.workers that compete against Mexican workers for jobs.

Joint ventures may lead to